Council 70 Flying Partners,


FYI:

  • Finding answers to your pension questions. (Recently updated) and

  • SAP Delay Explained

Take Care and Fly Safe,

 

Mollie
Local 70

 

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Pension Plan Q&A

 

  • Pension Plan Termination Q&A for Participants in the Following Defined Benefit Plans:

  • Pension Plan for Employees of US Airways, Inc. Who Are Represented by the IAMAW

  • Retirement Plan for Flight Attendants in the Service of US Airways, Inc.

Retirement Plan for Certain Employees of US Airways, Inc. (frozen in early 1990’s)

 

On January 6th, 2005, the bankruptcy judge approved a request by US Airways Group Inc. to terminate the above mentioned defined benefit plans. Within the next several weeks, the Pension Benefit Guaranty Corporation (PBGC) will assume responsibility for these plans.

 

To address the natural concern of our participants, the following information has been provided to answer some of the questions you may have regarding this decision:

 

1. Has the Pension Benefit Guaranty Corporation (PBGC) assumed responsibility for the above mentioned Plans?
We expect the PBGC to assume responsibility by the end of January 2005. When this transition is completed, the PBGC's pension insurance program will pay the defined benefit pensions to plan participants, up to the legal limits.

 

2. Can I call or write to the PBGC now?
Prior to the time that the PBGC takes control of the plans, they will not have assigned any personnel to answer your individual questions. However, after the PBGC assumes control of the plans, they will advise you of the procedures to follow. Therefore, you should not be contacting the PBGC with questions until you receive notification from either US Airways or the PBGC that it is appropriate to do so.

 

3. What does it mean that the PBGC will take control of the plans?
The PBGC will take control of the assets of each plan and will be responsible for their future investment. The PBGC will also be responsible for all aspects of the administration of the plans. Therefore, you will be required to send all claims for benefits to them. They will be responsible for responding to all of your issues regarding the payment of benefits and/or the amount of benefits. The PBGC will be responsible for issuing all benefit payments on a timely basis.

 

4. Who can I call at US Airways if I have any questions regarding these issues?
Please contact the US Airways Benefits Center at 800-872-4780 option 2.

 

5. How can I get more information about the PBGC?
You may access the PBGC website for further information. The address is www.pbgc.gov or call 1-800-400-7242. Please note that this is only for general information about the PBGC - you will not be able to obtain any information specific to US Airways.

 

6. If I am retired, will my pension benefits stop?
No. When a distressed company can no longer continue a single-employer plan, the Pension Benefit Guaranty Corporation ("PBGC") steps in and pays benefits based on the provisions of the plan, up to the limits set by law.

 

7. Will my pension benefits be reduced?
Based upon the limits set by law as to the amount that PBGC may pay, it is anticipated that most people will get all they would have received if the plans had not failed. But this is a difficult question to answer, as each person's benefits are somewhat different. Some benefits will be reduced, but most will not.

 

8. What will happen over the next few months?
The benefits of those actively drawing a pension may continue as before. However, final benefits payable from the PBGC could be reduced to reflect the PBGC Guaranteed Benefit as well as the phase in of recent plan improvements, if applicable.

 

No additional benefits will be earned by participants in the first two plans above and no employees will become new participants.

 

US Airways will assist the PBGC in the transfer of responsibilities to their personnel. It may take several months for the PBGC to take all of the records and assets and be responsible for all of the Plans’ operations.

 

In anticipation of the PBGC taking over the plans and as required in this situation, US Airways will begin administering your pension consistent with the PBGC rules. For a small number of pension recipients, this will result in a reduction in your monthly pension benefit.

 

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SAP Delayed, Information about Deadhead and Other Changes
 
The Company is in the process of recalculating the values of the pairings for the bid months of February and March to EXCLUDE the flight time associated with deadhead as pay and credit.  Concurrently, the value of vacation will be changed in CATCREW to reflect the new rates in effect on January 31, 2005.  To accomplish these tasks the opening of the Schedule Adjustment Period (SAP) will be delayed by 48 hours.   SAP for all bases will open on January 23rd at 1800 EST.  The CLOSINGS will be as follows, Group 1 (BOS, PHL, PHW, and PIT) on January 28th, at 1800 EST and Group 2 (CLT, CLW, DCA, and LGA) on January 29th at 1800 EST:

 

As a result of the aforementioned change, for the month of March when a trip is dropped or added in SAP the trip will be processed at its pay and credit value for the purpose of reaching the min and max windows. The deadhead value will not be a factor because it is excluded. This is also true for the AIL (bid sheet) starting on January 31st.  Therefore, if you desire deadhead time at 50% pay no credit (PNC) or want to avoid it then you will need to know what pairing numbers you want to fly/avoid when using SAP, the AIL, bidding Secondary Lines, as a reserve getting trip awards/assignment, etc. 

 

Note: In SAP, when using the expansion feature the last column in the SAP Generic Bid Expansion Screen shows which trips have a deadhead but not the amount of time.  If you want to know the value of the deadhead, you will need to look it up in the pairing sheets.  Additionally, when a Scheduler is contacted regarding trip improving, etc they will know pay and credit values ONLY not pay no credit associated with deadhead.

 


The following changes will occur in the near future:

 

-- Vacation rates will be recalculated with the new daily rates effective January 31,2005.  This rate change will be reflected in CATCREW by 1800 on January 23, 2005.

 

-- Effective January 31, 2005 all deadhead time will be compensated at 50% pay no credit.  In CATCREW deadhead pay will be recalculated to reflect this change on January 23rd.  All deadhead pay no credit will be displayed on the pay summary screen (Option 5).  All other screens in CATCREW will display pay & credit only.

 

-- You will see 100% deadhead time on your Flight Pay Report, however the deadhead time will be paid at 50% of your base rate of pay.

 

-- Commencing will the April published pairings and lines the deadhead time will be printed in the "DHD" field and not credited to the "PAY" field. The Company is currently working on changes to the pairing & line packets to enable them to print the pay no credit values.

 

-- Effective with Secondary Lines construction for March 2005, there will be no restriction to the amount of open time positions at the start of the month. This will eliminate the current 10% floor.

 

Carol Austin
MEC Scheduling Chair

 

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Take Care and Fly Safe,

 

Mollie McCarthy
LEC President
Council 70 PHL/PHW