Offered To Fa's Yesterday

deltawatch

Veteran
Aug 20, 2002
887
0
www.usaviation.com
Offered to FA's yesterday

Post-Retirement Medical:
Pre-65 Retiree Medical and Dental, For Employees Retired as of one day prior to the Effective Date of the 2004 AFA-US Airways Agreement:

· The 2004 AFA-US Airways Agreement will not waive any rights US Airways has under Section 1114 of the Bankruptcy Code to reduce retiree benefits for existing retirees as of the Effective Date.


Pre-65 Medical and Dental, For Employees Retiring On Or After the Effective Date of the 2004 AFA-US Airways Agreement:


· Employees retiring before age 65 who elect at the time of retirement to participate in retiree medical benefits may use accrued sick pay up to a maximum of 1500:00 hours to fund a portion of the monthly pre-65 retiree medical premium (access plan). Such payouts will be available subject to required administrative setup, but no later than March 31, 2005, and may be paid retroactively to employees retiring after the Effective Date of the 2004 AFA-US Airways Agreement and prior to the date administrative setup is completed.

· For purposes of funding monthly pre-65 retiree medical premiums, an hour of sick pay will be valued at $9.75. Forty-one hours of accrued sick pay ($399.75) will be credited towards the monthly pre-65 retiree medical premium until the 1500:00 hours of sick pay is exhausted.

· Should the monthly pre-65 retiree medical premium exceed the available credit, the retiree will be responsible for timely payment of the premium in excess of the credit.

· In the event the retiree at the time of retirement declines pre-65 retiree medical coverage, the retiree will be paid $7.90 for each hour of accrued sick leave up to a maximum of 1500:00 hours, such payment to be made in equal monthly installments over a twelve-month period. The retiree will not thereafter be eligible to participate in pre-65 retiree medical benefits.

· Pre-65 retirees will cease to participate in retiree medical coverage upon reaching age 65.

· Pre-65 retirees are not eligible for retiree dental coverage.

Age 65 and Post-65 Retiree Medical and Dental, For Employees Retiring On Or After the Effective Date of the 2004 AFA-US Airways Agreement:


· As of the Effective Date of the 2004 AFA-US Airways Agreement, eliminate medical and dental coverage for age 65 and older retirees.

· Age 65 and older retirees participating in retiree medical coverage on the Effective Date of the 2004 AFA-US Airways Agreement (closed group) will be eligible to continue prescription drug coverage through 2005 (coincident with new Medicare drug benefit). Subsidy caps and retiree contributions for 2005 will be reset to reflect prescription drug coverage only.


The Company agrees to indemnify the Association from any and all liability, loss, damages, fines, penalties, excise taxes and costs, including reasonable expenses and reasonable attorneys' fees, which the Association sustains arising out of or in connection with these Company-proposed changes to Post-Retirement Medical for employees who retired prior to the Effective Date of this Agreement. The Association agrees that it will not settle a matter covered by this indemnity at the Company's cost without the Company's approval, and that the Association will provide assistance as reasonably required or requested by the Company in any matter for which such indemnity is being provided.


The Company will make commercially reasonable efforts to include a lower-cost “catastrophic optionâ€￾ for post-retirement medical coverage, subject to a prompt, detailed review of plan options and plan costs, with 100% of costs to be paid by the retiree. The Company will meet with Association upon completion of such review to discuss the feasibility and costs associated with offering such an option.