Source: unitedafa.org

AFA's 2014 Enhanced Early Out Program Q & A

ELIGIBILITY

1. Who is eligible for the Enhanced Early Out Program?
   

   Pre-merger Flight Attendants who are active, on approved leaves and voluntary furlough as of September 15, 2014 are eligible to bid for the Enhanced Early Out Program. You must have a minimum of 15 years of Flight Attendant bid seniority as of September 15, 2014 (September 15, 1999 or earlier bid seniority).  Flight Attendants on involuntary furlough are not eligible.

2. If I am on Involuntary Furlough am I eligible to participate in the Enhanced Early Out Program?
   

   No.  Flight Attendants who are on Involuntary Furlough are not eligible to participate in the Enhanced Early Out Program.

3. If I am on Voluntary Furlough am I eligible to participate in the Enhanced Early Out Program?
   Yes.  Flight Attendants on Voluntary Furlough status who have a minimum of fifteen (15) years bid seniority (SW classification) as of September 15, 2014 are eligible to participate in the Enhanced Early Out Program.  However, Flight Attendants on Voluntary Furlough status who would like to participate in the Enhanced Early Out Program must first notify the company of their intent to return from Voluntary Furlough status before beginning the process of bidding for the Enhanced Early Out Program. 
4. If I am eligible to retire under the terms of Section 33 of the pre-merger Agreement on the date of my separation from United, what will I receive as a retired employee participating in the Enhanced Early Out Program?
   

   You must have 15 years of bid seniority to participate in the Enhanced Early Out Program.  If you are eligible to retire and have 15 years of bid seniority, as a Participant in the Enhanced Early Out Program you will be considered a retired employee and receive the following:

   • Retiree Medical Benefits as provided under the Contract in effect at the time of separation.
   • Retiree Pass Travel as provided under Company policy.
   • $4,000 per full year of bid seniority as of September 15, 2014 to a maximum of $100,000*.
   • The minimum payout for 15 years of bid seniority is $60,000*.

   *All payments will be subject to applicable taxation and withholding and other outstanding debts to the Company.

   If you do not have 15 years of bid seniority, you are not eligible to participate in the Enhanced Early Out Program.

5. If I am NOT eligible for retirement on the effective date of my separation what will I receive as a participant in the Enhanced Early Out Program?
   
   
   • You will have the option to elect COBRA medical coverage for 18 months provided you pay the full cost of the insurance and the 2% administration fee.
   • In addition, you may purchase pass travel in 5-year increments (5, 10, 15) at a cost of $5000 per 5-year increment. The cost of the pass travel purchase will be deducted from your Enhanced Early Out lump sum payment, after taxes and any other outstanding debts to the Company have been withheld. See paragraph 6.C.(2) of the Plan Document.
   • Your years of service are locked in at the date of separation, however if, during the period of purchased pass travel you would become eligible for retiree pass travel based on age, your travel privileges will automatically convert to retiree travel.
   • You will receive $4,000 per full year of bid seniority as of September 15, 2014, up to a maximum of $100,000*. The minimum payout is $60,000*. 
     
     *All payments will be subject to applicable taxation and withholding and other outstanding debts to the Company.
6. Is a Flight Attendant in the discipline process eligible to participate in the Enhanced Early Out Program?
   Yes.  A Flight Attendant who has active discipline on file is eligible to apply for the Enhanced Early Out.  However, if an eligible Flight Attendant is awarded an Enhanced Early Out Package, but currently, or at any time up to the date of their separation from United, is charged with conduct that could lead to discharge, the Flight Attendant’s Early Out Package shall be held in abeyance pending a hearing pursuant to Section 26.A. of the pre-merger AFA Flight Attendant Agreement, which shall be conducted as soon as practicable.  If the outcome of the hearing is anything other than termination of employment, the Flight Attendant retains the Enhanced Early Out Package.  If the outcome of the hearing is termination of employment; the Flight Attendant forfeits the Enhanced Early Out Package. In a case of termination, if the Flight Attendant is exonerated by System Board of Adjustment, the Flight Attendant shall have the option to receive the Enhanced Early Out Package benefits and privileges in lieu of reinstatement.

BID

7. When will the bid period open, close?
   Bids open:          September 15, 2014
   Bids close:          October 30, 2014 at 0800 Central Time.
8. If I am on Involuntary Furlough am I eligible to participate in the Enhanced Early Out Program?
   No. Flight Attendants who are on Involuntary Furlough are not eligible to participate in the Enhanced Early Out Program.
9. If I am on Voluntary Furlough am I eligible to participate in the Enhanced Early Out Program?
   

   Yes.  Flight Attendants on Voluntary Furlough status who have a minimum of fifteen (15) years bid seniority (SW classification) as of September 15, 2014 are eligible to participate in the Enhanced Early Out Program.  However, Flight Attendants on Voluntary Furlough status who would like to participate in the Enhanced Early Out Program must first notify the company of their intent to return from Voluntary Furlough status before beginning the process of bidding for the Enhanced Early Out Program.

10. How do I submit a bid?
    The bid process is a two (2) part process for premerger United Flight Attendants, 
    
    The first step in the process is to submit a bid using EOREQ/ (file number) in Unimatic. After submitting your bid, redisplay the screen to ensure your bid on file is accurate.   Keep a copy of the bid screen for your records. 
    
    The second step in the process requires you to submit a Waiver of Rights and Claims/Release from Liability form to the company. Once you have printed and signed the form you must scan and email the form to earlyout@united.com.  We recommend you keep a copy of the email for your records.  When the company receives the Waiver Form you will receive an email to your united.com email confirming this form has been received and is on file.
    
    Both of these steps must be completed no later than 0800 on October 30, 2014
11. May I remove my bid in Unimatic?
    Yes.  Remove your bid by using EOREQ/ (file number) in Unimatic. Type “N” over the “Y” and tab to bottom and hit enter.  After removing your bid, redisplay the screen to ensure your bid has been removed.   Keep a copy of the bid screen for your records.  You can remove your bid prior to the close date. 
12. May I rescind the Waiver of Rights and Claims/Release from Liability form?
    Yes.  However, once you have submitted the waiver form you have a one time only opportunity within seven (7) days to rescind the waiver.  Once you rescind the waiver you have forfeited your opportunity to participate in the Enhanced Early Out Program. 
13. Once I have signed my Waiver of Rights and Claim/Release of Liability, how do I revoke the Waiver?
    You will have seven (7) days from the date you signed your Waiver of Rights and Claims Release to revoke the Waiver. To do so you must print and sign the Group Enhanced Early Out Revocation Form.  Once signed, scan it and send it to EarlyOut@united.com.
14. What if I do not have both Unimatic Bid and Waiver form submitted form by 0800 on October 30, 2014?
    If one of the two processes (Unimatic EOREQ or Waiver form) are not complete or are missing, the participant will not be awarded the Enhanced Early Out.
15. How will I know that my “complete” Enhanced Early Out bid was received?
    After submitting your bid using EOREQ via Unimatic, you should redisplay the screen to ensure your bid has been entered properly. When the company receives the Waiver form you will receive an email to your united.com email confirming this form has been received and is on file.
16. Can I bid for the Enhanced Early Out after the close of the bid period?
    No.  Bids close at 0800 Central time of October 30, 2014.

AWARDS

17. How will the Enhanced Early Out Program be awarded?
    Flight Attendants will be awarded the Enhanced Early Out in system seniority order. 
18. How many Flight Attendants will be awarded the Enhanced Early Out?
    At this point, management is unable to determine the exact number of Enhanced Early Outs to be awarded but has made a commitment to award at least 1000 Early Outs for pre-merger United, 1000 for pre-merger CO and at least 100 for CMI.
19. If I am awarded the early out, when is my date of separation?
    Based on operational and staffing needs, the date of separation for awarded applicants will be between November 15, 2014 and November 15, 2016. Departure dates will be determined by management and will not necessarily be in Flight Attendant system seniority order.
20. When will I know if I was awarded the Enhanced Early Out?
    The company will notify you on or around November 14, 2014.
21. If I am awarded Enhanced Early Out, will I qualify for unemployment?
    The ultimate decision on unemployment compensation rests with the state in which you are employed.  United will contest unemployment claims made by employees who were awarded the Early Out.

PAY

22. Will the lump sum Enhanced Early Out payment be reported on my W-2 or a 1099?
    This payment will be reported on your W-2.
23. How much will I receive in my lump sum payment?
    Flight Attendants awarded Enhanced Early Out Packages shall be paid a lump sum payment of four thousand dollars ($4,000) per full year of Flight Attendant bid seniority, up to a maximum of one hundred thousand dollars ($100,000).  All payments will be subject to applicable taxation, withholding and other outstanding debts to the Company.  Payments will be paid within 45 days of your separation of employment.
24. Does my lump sum payout increase based on my date of separation from United?
    No. Your lump sum payment amount is based on your full years of bid seniority as of September 15, 2014 and will not increase based on your actual separation date.
25. What date is used to determine the lump sum payment?
    The lump sum payment is based on completed years of Flight Attendant bid seniority as of September 15, 2014.
26. When will I be paid my lump sum payment?
    Payments will be paid within 45 days of your separation of employment.
27. How will I be paid my lump sum payment?
    You will receive your lump sum payment in the same manner as your regular pay check either as a check or a direct deposit.
28. Will Flight Attendants at International domiciles be protected by the floor exchange rates outlined in our Contract?
    No, the floor exchange rates are utilized for Flight Attendant compensation purposes and are not applicable to the Enhanced Early Out payments.
29. Will the Enhanced Early Out Payment be separate from my final paycheck?
    Yes.  Your final paycheck will include your final earnings, accrued but unused vacation days (3:00 or 3:15 per day, see Section 18.K) and will be paid on the normal pay schedule or as required by law.
30. What will the Federal tax withholding rate be on the Enhanced Early Out payment?
    Withholding on Enhanced Early Out payments will be at the federal supplemental withholding rate of 25% in addition to FICA, applicable state/local withholding.
31. Can I defer the Enhanced Early Out lump sum payment into my 401(k)?
    No portion of the Enhanced Early Out lump sum payment can be deferred into the 401(k) account, nor is this money considered to be “Qualifying Wages” under Section 5.J.1.f. of the Contract.

BENEFITS

32. Will I receive profit sharing up to the date of my separation?
    Subject to the terms of the Collective Bargaining Agreement in effect at the time of your separation, you will receive profit sharing on qualified wages up to the date of your separation. Lump sum payments made as part of the Enhanced Early Out program are not considered “Qualified Wages” for purposes of calculating profit sharing.
    
    Keep in mind that no portion of the Profit Sharing payments received after you have separated from the company, through either resignation or retirement, may be deferred into your 401(k) account. 
33. Will Group Universal Life Insurance and Long Term Care remain in place if the Flight Attendant pays the premium after being awarded an Enhanced Early Out? If you participate in the Group Universal Life (GUL) insurance plan, you may continue your coverage on a direct bill basis within 31 days from the effective date of your Enhance Early Out by paying the premiums directly to the insurance carrier.  Minnesota Life will send you information regarding your portability options.  If you do not hear from
    Minnesota Life within 21 days of the effective date of your last day worked, please contact Minnesota Life at 1-866-887-1043.
    
    If you participate in the Long Term Care insurance, you may continue the insurance provided you pay for your coverage on a direct-bill basis.  Contact CNA at 1-800-339-9527 to provide them with your current home address and to request to be placed on direct-bill status. 
34. If I am retiree eligible on the date of my separation from United, do I have to sign up for retiree medical immediately?
    If you are eligible to participate in a retiree medical program, you must choose to participate as of your last day worked or you must contact the United Benefits Center to “voluntarily” suspend (VSOP) your retiree medical coverage and subsequently meet all VSOP requirements for later enrollment.  If you fail to do so, you will no longer be eligible or become eligible to participate in a retiree medical program. Please see the Plan Description for complete details or contact the United Airlines Benefits Center at 1-800-651-1007
35. If I take the Enhanced Early Out and am retirement eligible will I receive Retiree Life Insurance?
    Yes.  All retirement benefits under Section 33 of the Contract will apply to those Flight Attendants who retire as part of Enhanced Early Out program.
36. Can you provide an overview of what happens with my 401(k)?
    Thirty days following your Enhanced Early Out effective date, you may:
    
    1) Elect to retain your Fidelity 401(k) Plan account balance and continue to self-direct your investments (distributions must begin at age 70½);
    2) Elect to receive a partial or complete distribution of your account; or
    3) Rollover your account balance to another qualified retirement plan or IRA.
    
    To learn more about each of these options, refer to your 401(k) Plan Summary Plan Description (available on Flying Together or www.401k.com), explore the Library section of your Plan account at www.401k.com, or contact the Fidelity Service Center for United Airlines at 1-800-245-9034 between the hours of 8:30 a.m. to midnight, U.S. Eastern time, each day the New York Stock Exchange is open.
37. What if I have a loan from my 401(k) plan?
    If you do not either continue to make regular loan payments or pay any outstanding loan balance in full, the unpaid balance will be treated as a loan default the earlier of: 1) the date you request a distribution of your Plan account; or 2) the end of the calendar quarter following the calendar quarter in which you first fail to make a scheduled loan payment. Should you default on the loan, the unpaid balance will be reported to the Internal Revenue Service (IRS) as a taxable event in the year of default and may be subject to an IRS tax penalty. An IRS Form 1099-R reflecting the default will be issued in January of the following year.  For more information, access your Plan account online at www.401k.com or call the Fidelity Service Center for United Airlines at 1-800-245-9034.
38. What will I pay for COBRA coverage if I am not Retiree Medical eligible?
    COBRA rates differ based on plans.  Call the United Airlines Benefits Center at 1-800-651-1007.

TRAVEL

39. Will I be eligible for retiree passes? 
    If you meet the age and years of service requirements below on the date of your
    separation from United, you will be eligible for retiree travel:
    

    Age at Separation	Years of service
    45-50	20
    51	18
    52	16
    53	14
    54	12
    55	10
    65	5

    You will have the option to purchase pass travel as part of the Enhanced Early Out program. Your years of service are locked in at the date of separation, however if during the period of purchased pass travel you would become eligible for retiree pass travel based on age, and your years of service at separation your pass travel privileges will automatically convert to retiree travel.

    Note:  Satisfaction of the requirements listed is not a guarantee of any particular level of medical benefits or travel privileges in retirement, or that such programs will continue.  The terms of retiree medical are governed by plan documents and, in some cases, collective bargaining agreements.  The terms of retiree travel are governed by Employee Travel Regulations.  Medical benefits and Travel privileges may vary by age and years of service.

40. When purchasing travel as part of the Enhanced Early Out program, who will be eligible for pass travel?
    Enhanced Early Out participants are responsible for providing required documents for all eligible pass riders.  Eligible pass riders include the following:

• Employee
• Spouse or domestic partner (same or opposite gender)
• Or enrolled friend in lieu of spouse or domestic partner, each calendar year
• Children, regardless of marital status, until they attain age 26 (natural, adopted and/or step)
• Disabled children (disabled since before age 26)
• Up to two parents (any combination of natural, adoptive and/or step, same or opposite gender) with the option to change who travels quarterly

41. How will I be billed in order to make a travel listing confirmation?
    When a fee applies it must be prepaid with a credit card at the time of booking.  The charge will occur at the time of booking.  Bookings that are canceled prior to the departure of the flight will be automatically refunded.   Bookings not canceled in advance will need to be refunded through customer refund services via the company website at www.united.com > refund > complete on line information. 
42. For Flight Attendants that aren’t eligible for retiree travel privileges, do they have to pay pass travel service charges?
    Yes. Enhanced Early Out participants will pay any applicable service charges, ticket taxes, departure and other airport/regulatory taxes and fees. 
43. Is domestic partner travel included in the Enhanced Early Out travel privileges?
    Yes.
44. Will I be able to pick 2 Enrolled Friends each year as the current retirees have been told (which is the new retirement companion option)?
    During the Enhanced Early Out pass travel period, participants may elect one enrolled friend in lieu of spouse or domestic partner, each year.  If and when the Enhance Early Out participant converts to Retiree Pass Travel by meeting the age and years of service requirements during the purchased travel period, the participant will be eligible to elect two (2) Enrolled Friends in addition to their spouse or domestic partner each year as a retiree.
45. Is the cost of retiree travel privileges identical to active employees?
    Yes, employees, retirees and Enhance Early Out participants all pay the same service charges, taxes and fees that are applicable at that time.  See Flying Together > Travel > Service Charges. Service charges are subject to change from time to time.
46. Flight Attendants awarded the Enhanced Early Out Resignation option are required to pay 10% of coach fare, is that the same rate as a buddy pass?  Is it possible to give an example?
    
    The tax calculation for Enhanced Early Out participants is the same as it is for buddy passes.
    
    Per IRS regulations, the fair market value (10% of the unrestricted coach fare of each segment flown) of all travel is reported as taxable income for the Enhanced Early Out participant and pass riders.
    
    Calculating Tax Value:
    The pass tax value equals 10% of the lowest B or Y fare in effect on the date of travel, minus the applicable service charge.  If the service charge is equal to or greater than 10% of the B or Y fare, the tax value is zero.
    
    Calculating Amount of Tax Withholding:
    To calculate the amount of tax that will be withheld, take the pass tax value and multiply it by the total of the FICA rate and the federal tax rate. 
    
    Example: $90.00 pass tax value (10% of a $900 B or Y fare) X 32.65% (7.65% FICA rate plus 25%* federal tax rate) = $29.38 approximate tax withholding. 
    
    To view federal and state income tax rates, visit http://www.irs.gov.
    
    *25% is an average federal tax rate; it may be lower or higher based on tax bracket, with a maximum of 35%.
47. What is the boarding priority for Enhanced Early Out pass travel?
    Enhanced Early Out participants boarding priority currently is SA5P. A list of NRSA boarding priorities is available on Flying Together under the Travel tab. Boarding priorities are subject to change from time to time.
48. Can my pass travel privileges be changed after I separate from the Company?
    Yes. Pass travel is subject to Company policy, which is subject to change from time to time at the Company’s discretion.

RETIREMENT

49. I have already submitted for retirement. May I rescind my request and apply for the Enhanced Early Out?
    Yes, provided your retirement has not already occurred.  However you must complete and submit via the company website the Retirement Revocation form located on Flying Together > Inflight Services > FAST>Retirement & Resignation website to rescind your current request for retirement before applying to the Enhanced Early Out program.
50. If I am not 55 years old on the date of my separation, will I age into Retiree Medical Benefits if I am awarded the Enhanced Early Out?
    A Flight Attendant must be Retiree eligible as of the date of their separation in order to receive Retiree Medical. Keep in mind, for this program, management will determine the actual date of separation or “exit date”.
51. How will the Company administer the Enhanced Early Out Program in conjunction with a Flight Attendants retirement?
    For a Flight Attendant who is eligible to retire, their retirement benefits date will be their last day of employment with United, as determined by the Company.
52. Where do I get information about my PBGC benefit?
    Contact the Pension Benefit Guaranty Corporation (PBGC) for all information regarding the terminated pension plans. Visit the PBGC on the Internet at www.pbgc.gov or call toll-free 1-800-400-7242 and refer to the appropriate PBGC Case Number:
    
    Flight Attendant Defined Benefit Pension Plan - 19962800
    
    To initiate the pension payment process, call the PBGC and request a pension application. United recommends that eligible employees request a pension application at least four months before the desired date of the first pension payment
    
    Employees should be prepared to submit a copy of the Employee Separation Data Review document that they will receive from their manager/supervisor as part of the retirement process to the PBGC upon request as documentation of their termination of employment with United.
53. Am I eligible for reemployment at United?
    No, you will not be eligible for rehire at pre-merger UA, CO or CMI.

MISCELLANEOUS

54. Where can I get additional information if I have questions about the Enhanced Early Out Program not answered here?
    You have a number of options.  Contact your Local Council Office, Domicile supervisor or Human Resources. Questions may also be sent to earlyout@united.com. 
55. How will this Enhanced Early Out program impact Flight Attendants not electing to participate in the Enhanced Early Out?
    
    Management will:

• Recall all Flight Attendants from Involuntary Furlough
• Recall all Flight Attendants from Voluntary Furlough
• Cancel all Partnerships, effective December 1, 2014, and will not offer Partnerships going forward.
  
  Management has indicated their expectation of higher line averages and fewer opportunities for discretionary time off (Daily ANP, 30 ANP, Special Leaves).

DELAYED SEPARATION

56. Does my lump sum payout increase if the company assigns me a delayed exit date?
    No. Your lump sum payment amount is based on your full years of bid seniority as of September 15, 2014 and will not increase based on your actual separation date.
57. If I am assigned a delayed exit date will I continue to accrue seniority?
    Yes.  You will continue to accrue seniority for all purposes.
58. If I am assigned a delayed exit date, what will my travel seniority be when I am separated or retire?
    Your travel seniority will be locked in on the date you are separated from the company.  For example, if you are awarded the Enhanced Early Out and are assigned a separation date of May 15, 2015 your retiree passes will based on this date.
59. If I am assigned a delayed exit date, what date will my retiree health insurance benefits be based on?
    Your eligibility for retiree medical benefits is based on the date you are separated from the company.  For example, your eligibility for retiree medical will be determined on the date you are separated from the company based on your age and years of service on that date. Benefits will be provided under the terms of the Contract in effect at that time.
60. Will exit dates be assigned in system seniority order?
    No.  The participant’s exit date will be assigned by the company based on operational and business needs.  For example, based on the level of interest at a certain location, it is possible that more junior Flight Attendants could be assigned earlier exit dates at one location while some senior Flight Attendants at a different location are assigned a later date.
61. Will exit dates be assigned in domicile seniority at a given location?
    Based on operational and business needs, exit dates may not be assigned in domicile order.  For example, at a given location a more senior Purser Qualified Flight Attendant may be awarded a later exit date while a more junior non-purser qualified Flight Attendant is assigned an earlier exit date. The company has indicated the business need to have a sufficient number of Purser Qualified Flight Attendants at some locations, and may delay exit dates at some locations.
62. Will Flight Attendants be given notice of their exit dates?
    The company has made a commitment to do all possible to expedite exit dates, and to provide adequate notice to participants of their impending exit date.