The offer is designed to be attractive to those FAs that are close to retirement who do not wish to work the part-time job of commuting.
There is no reason for work groups to fight with each other over this offer. The FA union worked hard to get this package and they would have liked it to be more attractive to a wider group of FAs instead of just those close to retirement. If your work group wants a buyout package, then direct your anger/frustration at your union for not working for you - don't take it out on the FAs.
Part of the Q&A from a recent e-line:
Is there any health insurance available with the SEP?
The only health insurance options being provided in the SEP are COBRA in accordance with applicable law or the Company Access plan. COBRA benefits will be offered for the applicable 18 month period. Flight Attendants who have reached retirement age and are awarded a SEP will be able to access their PBGC benefits and in most cases that will allow the use of the Health Care Tax Credit (HCTC) to help offset the cost of COBRA. The Company Access Plan is not an eligible HCTC plan and therefore not a viable option. We will be publishing the current COBRA rates and updated HCTC information shortly.
The following link will take you to the AFA Retirement Booklet that was published in 2005.
http://www.afausairways.org/Benefits/pension_bk52605.pdf (Adobe PDF File - Viewer here)
What happens to the Sick Bank of a Flight Attendant awarded a SEP?
In accordance with our contract a Flight Attendant awarded an SEP who is retiree eligible will be able access to sick payout options as defined in Section 22.A. 4. of the Collective Bargaining Agreement. Those provisions are copied below:
(1) Employees retiring before age 65 who elect at the time of retirement to participate in retiree medical benefits (monthly contributions will be calculated as the total cost of the plan for pre-65 retirees and level of coverage the flight attendant elects: Option 1, Option 2, or Option 3, less the amount covered by accrued sick leave) may use accrued sick pay up to the maximum contained in the flight attendant's sick bank, even if such amount exceeds 1,500 hours, on the date of retirement to fund a portion or all of the monthly pre-65 retiree medical premium.
(2) For purposes of funding monthly pre-65 retiree medical premiums, an hour of sick pay will be valued at $8.20. Forty-one hours of accrued sick pay ($336.20) will be credited towards the monthly pre-65 retiree medical premium until the Flight Attendant's sick bank on the date of retirement is exhausted.
(3) To the extent that the monthly pre-65 retiree medical premium exceeds the available credit, the retiree will be responsible for timely payment of the premium in excess of the credit.
(4) In the event the retiree at the time of retirement declines pre-65 retiree medical coverage, or is 65 or older at the time of retirement, the retiree will be paid $6.70 for each hour of accrued sick leave in his/her sick bank at the time of retirement, such payment to be made in equal monthly installments over a twelve-month period, beginning within thirty (30) days of retirement, or a flight attendant may receive a one-time cash payment, within thirty (30) days of his/her retirement date. The retiree will not thereafter be eligible to participate in pre-65 retiree medical benefits.
