UNITED PILOTS BENEFIT PROGRAMS. The. Benefits Book

Transcription

1 UNITED PILOTS BENEFIT PROGRAMS The Benefits Book UAL MEC R&I Committee, 2017

2 Fellow pilots, The United MEC Retirement and Insurance Committee has created this Benefits Book to assist you in understanding your negotiated benefits and to provide you with a quick-reference, user-friendly, document written from the pilot s point of view. Benefits have become more complex and are an important part of your total compensation. Take home pay, which is taxable, is only a part of the total compensation you receive as a United pilot. Employee benefits, negotiated for you by your union, are part of your total compensation package. These non-cash benefits include retirement, medical, dental, long-term disability, sick leave, retiree health account, life insurance, flexible spending accounts, and survivor benefits. While we might occasionally take them for granted, employee benefits are a significant part of our total compensation. Please keep in mind that this Benefits Book is intended to provide only a general summary of your benefits and does not address every individual situation. The UPA and various plan documents provide in detail the terms and conditions that apply to your benefits. This Benefits Book is not an official plan document; therefore, if there is any conflict between the terms of the official plan documents and the terms of this Benefit Book, the official plan documents will govern. Additionally, this Benefits Book does not constitute legal, tax, investment, or other advice to any individual. The R&I Committee wants your feedback to enhance your benefits in the future. We also would like your opinion about this guide. If you have questions or comments about anything in this Benefits Book, your benefits in general, or issues and concerns with the way UAL administers or pays your benefits, please reach out to us at UALMECRI@alpa.org or Fraternally, United MEC Retirement and Insurance Committee 2

3 TABLE OF CONTENTS Benefit Overview...4 Quick Reference Contacts...9 Retirement UPA Section Defined Contribution Plans UPA Section 22-A...12 Legacy UAL Defined Benefit...24 Continental Pilots Retirement Plan (CPRP) UPA Section 22-B...26 Medical Plans UPA Section 24-B...32 Dental UPA Section 24-C...40 Vision Plans UPA Section 24-D...41 Flexible Spending Account Plan (FSA) UPA Section 24-E...42 Retiree Medical Benefits UPA Section 24-F...43 Retiree Health Account (RHA) VEBA UPA Section 24-G Sick Leave UPA Section 13 and California Sick...51 Long Term Disability (LTD) UPA Section 24-H...52 Family Medical Leave Act (FMLA) Section 12-E...55 Pregnancy & Maternity Leave Sections 12-E&F, 24-H* Workers Compensation UPA Section 15, 3-E-3 & MOU Active Life and Accident Insurance UPA Section 24-I...64 ALPA Insurance Plans...66 The R&I Committee...67 Appendix A Locked-In Plan Designs...A-1 Appendix B Covered Expenses Under Locked-In Health Plans...B-1 Appendix C Excluded Services Under Locked-In Health Plans...C-1 Appendix D Preventative Services Under Locked-In Medical Plans...D-1 Appendix E Pilot Long-Term Disability (LTD) Check List... E-1 Appendix F LTD Handbook... F-1 Appendix G Retirement Checklist...G-1 Appendix H Preparing for the Unexpected...H-1 3

4 BENEFIT OVERVIEW Retirement COVERAGE BENEFIT AMOUNT ELIGIBILITY & REMARKS YOUR COST TAX STATUS PRAP Company Contributions B Plan = 9% of eligible earnings. C Plan = 7% of eligible earnings. Immediate eligibility. Contributions are subject to the IRC 415(c) limits and 401(a)(17) limits. None. Taxable upon distribution. 401(k) Program (Part of PRAP) A pilot may make pretax contributions up to IRC limit (IRC limit in 2017 is $18,000 with catch up for those 50 or older of additional $6,000). Contributions are subject to the IRC 415(c) limits. Combination of pretax and Roth 401(k) contributions cannot exceed 401(k) limit. Contributions amount up to the IRC limits is determined by individual pilot election. Taxable upon distribution. Roth 401(k) Program (Part of PRAP) A pilot may make post-tax contributions up to IRC Limit (IRC limit in 2017 is $18,000 with catch up for those 50 or older of additional $6,000). Contributions are subject to the IRC 415(c) limits. Combination of pretax and Roth 401(k) contributions cannot exceed 401(k) limit. Contributions amount up to the IRC limits is determined by individual pilot election. Tax exempt distribution. Pilot Voluntary Post-tax Contributions Contributions are subject to the IRC 415(c) limits. Post-tax contributions can only be made after maximizing 401(k) limit. Contributions as elected by pilot. Earnings are taxable upon distribution. UAL A-Plan Benefit varies by pilot; contact PBGC for benefit amount (if applicable). Plan was terminated on 12/30/2004. Distributions are taxable income. CAL CPRP Benefit varies by pilot; reference YBR on Flying Together to determine benefit (if applicable). Plan was frozen on 5/31/2005. Distributions are taxable income. 4

5 Medical and Dental Benefits Pilots Choose from Variety of Plans COVERAGE BENEFIT AMOUNT ELIGIBILITY & REMARKS YOUR COST TAX STATUS Core PPO Unlimited. Contractually required plan. 20% of Plan Cost. Tax-exempt. Core EPO Unlimited. Contractually required plan. 20% of Plan Cost. Tax-exempt. Core HDHP Unlimited. Contractually required plan. 20% of Plan Cost. Tax-exempt. Regional Select Medical Plans Unlimited. Contractually required plan. 20% of Plan Cost. Tax-exempt. International Medical Plan Unlimited. Contractually required plan. Set by the Company. Tax-exempt. Optional Medical Plans Unlimited. Company has the ability to offer any plans they want. Company must offer to pilots any medical plan offered to other employees. Drug Plan All medical plans provide for drugs; please refer to the plan design. Set by the Company Aggregate of all medical plans must not exceed 20% of plan cost. Varies by plan. Tax-exempt. Tax-exempt. Core Dental $2,000 annual limit. Contractually required plan. 20% of cost. Tax-exempt. Optional Dental Plans Varies by plan. Company has the ability to offer any plans it wants. Company must offer to pilots any dental plan offered to other employees. Flexible Spending Account (FSA) Health Flexible Spending Account (FSA) Dependent Care Vision Up to $2,600 in Pilots making >115,000 limited to $2,000 in Pilots making <$115,000 up to $5,000 in Discounted eye care, prescription glasses, and contacts. Plan uses pretax dollars to cover health-care expenses allowed by IRC and not covered elsewhere. FSA uses pretax dollars to cover dependent care expenses permitted by IRS and not covered elsewhere. This applies to expenses such as child day care. All pilots and their eligible dependents. Set by the Company. Up to $2,550 as elected by pilot. Up to $5,000 as elected by pilot. Tax-exempt. Tax-exempt. Tax-exempt. 100%. Tax-exempt. Workers Compensation Medical Benefits are paid in full. Job related illness or injury. None. Tax-exempt. Retiree Medical Coverage Before Medicare Retiree Medical Coverage After Medicare Unlimited. See individual plan descriptions for more details. Pays secondary to Medicare. 10 Years of Service (YOS) and at least age 50 at retirement. Pilots can choose from all active pilot plans. 10 YOS and at least age 50 at retirement. Pilots Cost based on YOS: 25+ = 40% = 60% = 80% Company contributes $90/month per person; pilot pays balance. Tax-exempt. Tax-exempt. 5

6 Vacation, Sick Leave, Long Term Disability (LTD) & Retiree Health Account (RHA) COVERAGE BENEFIT AMOUNT ELIGIBILITY & REMARKS YOUR COST TAX STATUS Vacation Days per Year Paid at 3.25 hours per day. 1 4 YOS: 14 days 5 10 YOS: 21 days YOS: 35 days 25+ YOS: 42 days None. Taxable income. Sick Leave 5 hours per bid period up to a maximum of 1300 hours. None. Taxable income. Sick Leave (Rapid Accrual) 7 hours per bid period up to SL level prior to illness. Pilot must have had a single illness requiring 255 or more hours. None. Taxable income. Long-Term Disability (LTD) Monthly benefit of 50% of 85.5 hours, capped at $8,000 per month. Pilots will be automatically enrolled but can opt out and will need evidence of insurability to reenroll. Loss or inability to exercise First- Class Medical triggers benefit after waiting period. Waiting period is the later of 90 days or exhaustion of sick leave. (Pilots can reserve up to 120 hours sick leave.) Occupational waiting period is 60 days. Pilots can opt to use additional sick leave before starting LTD with an occupational injury. 35% of the cost of the plan, based on hourly rate with hourly rate capped at $ (this provides the full $8,000 per month benefit). Pilot contributions are paid with post-tax money. Company s 65% contribution is imputed income to the pilot. In the current year, the pilot rate is 1.081%. To calculate monthly premium multiply 85.5 x blended hourly rate (not to exceed $187.13) x 1.081%. Tax-exempt. Retiree Health Account $1 per credit hour is deposited into RHA. RHA can also be funded with excess IRC 415(c) and IRC 401(a) (17) contributions. RHA funds reimburse pilots tax-free for retiree medical expenses. Each pilot has an account that can viewed on the Your Benefits Resources website accessed through United s Flying Together website. Investments are determined by RHA Investment Committee to keep administrative fees low. $1 per hour of pilot s hourly rate. Excess 415(c) and 401(a)(17) contributions go into RHA. Contributions, investment gains, and distributions are taxexempt. Worker s Compensation Benefit depends on state law. Claims for pilots hired after the merger and L-UAL pilots can be filed in Illinois, domicile state, resident state, or state of accident. L-CAL pilot claims filed in Texas, domicile state, resident state, or state of accident. Occupational related disabilities and death. None. Partially tax-exempt. 6

7 Life, Accident, and Survivor Benefits COVERAGE BENEFIT AMOUNT ELIGIBILITY & REMARKS YOUR COST TAX STATUS UAL Company-Paid Basic Life Insurance Pilot: Minimum of $100,000 and maximum of 1,026 times hourly rate. Immediate eligibility. None. Coverage of first $50,000 is tax-exempt. Coverage over $50,000 is imputed income, per IRS table based on age. Spouse: $5,000. Automatic coverage. None. Tax-exempt. Children: $1,000. Automatic coverage. None. Tax-exempt. UAL Pilot-Paid Voluntary Life Insurance (GVUL) (Term or Universal) Pilot: 1 to 14 times salary, to maximum of $3,000,000. Spouse/Domestic Partner: $10,000 to $500,000. Up to $600,000 without evidence of good health for new hire pilots. Up to $30,000 without evidence of good health. Premiums are based on age and level of benefit selected. Premiums are based on age and level of benefit selected. Tax-exempt. Tax-exempt. Children: $10,000 of Term Life. One plan covers all children for one fee. Tax-exempt. Basic Personal Accident Insurance (PAI) Business Travel Accident Insurance $39,000. Immediate eligibility. None. Tax-exempt. $250,000 for accidental death. Immediate eligibility. None. Tax-exempt. Invalidated Life Insurance Up to $1,000,000, subject to $5,000,000 for all coworkers per incident. Policy covers you if your personal life insurance plan is ruled invalid due to your work at UAL (i.e., terrorist attack). UAL will pay your beneficiaries the amount of your personal life insurance with this provision (up to the stated limit). None. Tax-exempt. UAL AMC/CRAF Insurance $150,000. For death or disability on MAC/CRAF flights. None. Tax-exempt. Special Hazard Insurance Up to $150,000, subject to aggregate of $7,000,000 for all covered coworkers. None. Tax-exempt. 7

8 Life, Accident, and Survivor Benefits (continued) COVERAGE BENEFIT AMOUNT ELIGIBILITY & REMARKS YOUR COST TAX STATUS Survivor Benefits (active pilot with 10 years of service) Medical benefits for life. Active medical plans continue until age 65, after-medicare plan begins after age 65. If pilot had 10 years of service. Premiums for your survivors are same as active pilot until age 65, then after-medicare premiums for your survivors are same as retired pilot. Survivor Benefits (active pilot with less than 10 years of service) Medical benefits for 3 months, then COBRA. If pilot had less than 10 years of service. Premiums for your survivors are same as active pilot then COBRA rates apply. Workers Compensation Benefits depend on state where claim is filed. Claims for pilots hired after the merger and L-UAL pilots can be filed in Illinois, domicile state, resident state, or state of accident. L-CAL pilot claims can be filed in Texas, domicile state, resident state, or state of accident. Occupational related disabilities and death. None. Partially tax-exempt. Burial Allowance $300 from VA. Veteran. None. Tax-exempt. $255 from Social Security. Paid to spouse or child. None. Tax-exempt. 8

9 QUICK REFERENCE CONTACTS Important Benefit Contacts and Resources TOPIC CONTACT PHONE NUMBER WEBSITE PRAP Schwab PRAP ( ) United Airlines Employee Service Center United Airlines 877-UAL-ESC9 ( ) United Airlines Benefits Center United Airlines Benefits Center Monday Friday from 7 a.m. 7 p.m., Central Time Toll free: Outside U.S., Puerto Rico, Canada, Guam, or U.S. Virgin Islands: Flying Together > Employee Services > Benefits > Your Benefits Resources Find a Doctor or Other Provider/ Details on Your Medical Plan Aetna Aetna International Toll Free: Collect: BC/BS Flexible Spending Accounts (FSAs) United Airlines Benefits Center Flying Together > Employee Services > Benefits > Your Benefits Resources > Other Benefits > Your Spending Account Health Savings Account (HSA) PayFlex Union Peer Employee Assistance Program Union Peer EAP ALPA EAP/HIMS: Aeromedical: Mental Health and Substance Abuse (MHSA) Benefits Beacon Health Options (BC/BS and Aetna plans) Dental Plans Dental PPO Plans 888-UAL-DENT Core Dental PPO ( ) United States: United Kingdom, Germany, and China: Japan: Aetna DHMO Cigna DHMO Vision Plans VSP Vision Care Superior Vision

10 Important Benefit Contacts and Resources (continued) TOPIC CONTACT PHONE NUMBER WEBSITE HMO or Regional Medical Plans Various Providers Check YBR for contact information Flying Together > Employee Services > Benefits > Your Benefits Resources. Employee Assistance Program (EAP) and coordinating mental health and substance abuse services United Regional EAP Managers Toll Free: Or contact EAP office directly: Chicago/ORD: Newark/ EWR: Denver/DEN (SEA): Cleveland/CLE: Honolulu/HNL: Houston/IAH: Houston/HQS: Los Angeles/LAX: San Francisco/SFO (HKG/NRT): Washington DC/IAD (BOS/JFK/FRA/ LHR): Flying Together > Employee Services > Employee Assistance Program Company-Paid Life Insurance Minnesota Life Voluntary Life Insurance GVUL MetLife Pilot Long-Term Disability (LTD) The Reed Group unitedairlines.leavepro.com Retiree Health Account (RHA) United Airlines Benefits Center Flying Together > Employee Services > Benefits > Your Benefits Resources Workers Compensation Claim Reporting Gallagher Basset 877-UAL-HURT Personal Accident Insurance (PAI) AIG Benefit Solutions Flying Together > Employee Services > Benefits Prescription Drugs CVS/Caremark Managing Your Wellness Aetna be fit Challenge Competition Support ShapeUp: Monday Friday, 7 a.m. 7 p.m. Central Time befit.shapeup.com 10

11 RETIREMENT UPA SECTION 22 All United pilots participate in the Pilot Retirement Account Plan (PRAP), a defined contribution retirement plan. The PRAP is the result of the merger of the legacy United Pilot Directed Account Plan ( PDAP ), the legacy Continental Pilots 401(k) Plan, and the legacy Continental Pilots Defined Contribution Plan (B-Plan). This is an individual account in your name with immediate vesting of all contributions. Your account is protected from UAL and creditors the bottom line is: it s your money. The PRAP is made up of six possible contribution sources (explained in more detail below): 1. 9% B-Plan and 7% C-Plan company contributions (totaling 16% of eligible earnings) (k) contributions 3. Roth 401(k) contributions 4. Post-tax contributions 5. Vacation forfeitures 6. Rollovers from other qualified retirement accounts (i.e., an old IRA or previous employer 401(k)) Additionally, depending on when you were hired, you might have a legacy UAL defined benefit pension plan (UAL A-Plan) that was terminated and taken over by the PBGC, or a legacy CAL defined pension plan, Continental Pilots Retirement Plan (CPRP), and/or Continental Retirement Plan (CARP), that has been frozen (i.e., no additional benefit accruals). 11

12 DEFINED CONTRIBUTION PLANS UPA SECTION 22-A ELIGIBILITY You are eligible to participate in the PRAP if you are a pilot employed by the company and on the seniority list or if you are a retired pilot with an account in the PRAP. If you are a new-hire pilot, you will automatically be enrolled in the PRAP with a 5% pretax employee contribution. If you want to change your contribution type or percentage, this can be done at any time. See the Contribution Rate Changes section for instructions. Your contributions will be invested in one of the Target Date Funds based on your year of birth and an assumed retirement age of 65, unless you make an affirmative election to invest your contributions in another of the PRAP s investment option(s). Information about how to change your savings rate and investment elections follows later in this booklet. The Internal Revenue Code (IRC) limits the maximum dollar amounts that can be contributed to the PRAP each year. For 2017, there is a combined limit of $18,000 for employee pretax and Roth 401(k) contributions. Pilots age 50 or older in 2017 may contribute an additional $6,000 annually in 401(k) catch up contributions. There is also a combined limit of $54,000 (or 100% of your compensation, if lower than $54,000) for all employee and company contributions in total. If you will be age 50 or older in 2017, your contribution limit is increased by $6,000 due to the catch up contribution provision. The $54,000 limit applies to your total pretax contributions, Roth 401(k) contributions, post-tax contributions, and any company contributions made on your behalf to the PRAP. If you reach the 415(c) limit of $54,000, any future company contributions (16% or vacation forfeiture) that would have gone to the PRAP will instead be contributed to your Retiree Health Account (RHA). IRC 415(c) Limit in 2017 Lesser of $54,000 or 100% of compensation. Those 50 or older can contribute $6,000 in 401(k) catch up contributions, and catch up contributions do not count toward the 415(c) limit. The IRS also limits the amount of annual pay that may be taken into account for the PRAP. The limit for 2017 is $270,000. Pilots who earn more than $270,000 will not have the 16% on the amount greater than $270,000 go into their PRAP accounts; instead, an equal amount will go into their RHA. For instance, a pilot earns $280,000 in 2017, the 16% attributable to the amount between $270,000 and $280,000 cannot go into his PRAP; instead, the amount ($10,000 x 16% or $1,600) will be deposited into his RHA. IRC 401(a)(17) Limit in 2017 Employer contributions to defined contribution plans limited to wages of $270,000 (excludes profit-sharing income). YOUR CONTRIBUTIONS Pretax 401(k) Contributions You may contribute from 1% to 100% of your eligible earnings (less your required taxes; e.g., FICA taxes and deductions) into the 401(k) plan on a pretax basis each year. You may also designate a flat dollar amount to be deducted from each of your paychecks and contributed to the PRAP. The contribution limit for 2017 is $18,000. This limit may change each year. 12

13 Roth 401(k) Contributions You may contribute from 1% to 100% of your eligible earnings (less your required taxes) to the Roth 401(k). Roth 401(k) contributions are post-tax contributions. The Roth balances will be held in a separate account within your PRAP from contributions to your regular pretax 401(k) and post-tax non-roth contributions. The contribution limit for 2017 is $18,000. This limit may change each year. The sum of your Roth 401(k) and pretax contributions cannot exceed $18,000 for You decide what percentage of your retirement plan contributions goes to either account (or both). Catch Up If you are age 50 or older, your pretax and/or Roth 401(k) contributions will automatically continue beyond the annual IRS elective deferral limit until you reach the annual catch up contribution limit, unless you elect to discontinue contributions. The 2017 catch up contribution limit is $6,000. Catch up contributions are permitted on both a pretax and/or Roth 401(k) basis. Post-Tax At any time, you may elect to contribute from 1% to 100% of your eligible compensation (less your required taxes and deductions) on a post-tax basis. However, no post-tax contributions will be deducted from your paycheck until you have made the maximum possible pretax/roth 401(k) deferral contribution for the year (for 2017: $18,000 if you are under age 50; $24,000 if you are 50 or older). Once you have reached these applicable limits, posttax contributions will begin as of the next payroll cycle. As a result, pretax/roth 401(k) contributions and post-tax contributions will not be deducted from the same paycheck. The post-tax balances will be held in a separate account within your PRAP from contributions to your regular pretax 401(k) and Roth 401(k). Earnings on post-tax contributions are not taxable until withdrawn. Post-tax balances may be withdrawn at any time without a qualifying financial hardship, at which time the applicable earnings are subject to federal taxes. Rollover You are also permitted to roll over contributions from other qualified retirement plans (i.e., from a previous employer) into your PRAP, with certain limitations. By doing so, you can manage your retirement assets in one account within the PRAP and your money will continue to earn gains/ losses on a tax-deferred basis. In addition, if you roll over contributions from other qualified retirement plans to the PRAP, you may find that your investment costs will be lower in the PRAP. Check with your prior plan for details on investment and account charges. To verify whether or not you may roll these contributions into your PRAP account, call the PRAP Service Center at You may obtain a rollover form by going to Contribution Rate Changes You may increase, decrease, or cease the voluntary amount you choose to contribute to your PRAP 401(k) Plan account at any time. You can submit any changes to your savings rate by calling the PRAP Service Center at or by logging onto your account at Changes will be made effective as soon as administratively feasible. Beginning in 2017, the election in effect two weeks prior to the payroll date as listed on the Schwab website will determine the amount deducted from your paycheck. For instance, the paycheck on the 16th of the month will normally use 13

14 the election on file at Schwab on the last day of the prior bid month, and the paycheck on the 1st will use what was on file at Schwab on the 16th of the prior month. Automatic Savings Increase The PRAP allows you to voluntarily elect automatic savings increases to your 401(k), Roth 401(k), and post-tax contributions to help you set aside extra money automatically each year. You select the date and the amount you would like your contribution rate to automatically increase through COMPANY CONTRIBUTIONS Company Contribution United will make a contribution equal to 16% of your eligible earnings each pay period. Eligible earnings are defined in UPA Section 22-A-3. For historical purposes, the 16% contribution will be split with 9% going to the B-Plan account source, and 7% going to the C-Plan account source. Vacation Forfeiture Any un-awarded vacation days to your credit shall be forfeited at the end of the vacation year. As soon as possible, but no later than June 16 following the vacation year, the company shall make a contribution equal to the product of the following: a) Your number of forfeited monthly bid vacation days for the prior vacation year, multiplied by b) 3 hours, 15 minutes (3:15), multiplied by c) Your hourly rate of pay as of the last day of the vacation year. The contribution will count toward the combined employee and employer contribution limit in the year the contribution is made to your PRAP account and held in the Un-Awarded Vacation Forfeiture account. The company does not pay the 16% employer contribution on forfeited vacation. Company contributions are made on a pretax basis and may be taxable at withdrawal. If you retire at the FAA Mandatory Retirement age the company will make a contribution to the PRAP of up to 21 days of vacation with the same formula stated above. The company does not pay the 16% employer contribution on the vacation forfeiture at retirement. Vesting You are 100% vested in your PRAP account, including any company contributions and potential earnings, at all times. ROTH CONVERSIONS Balances in any account sources in the PRAP can be converted to a Roth source. This can be the entire account source or just a portion of it. To convert balances from non-roth to Roth, call Schwab at Any amounts converted to Roth that are not post-tax contributions will be subject to tax in the year converted. You will receive a 1099 for the taxable amount. Therefore, pilots should carefully consider converting their balances, since the conversion of pretax balances in non-roth accounts to Roth accounts may trigger a substantial taxable liability. If a pilot decides to convert balances in the Post-Tax Account, only the earnings are subject to tax and not the contributions. Converting the Post-Tax Account to Roth could make financial sense for some pilots since after the conversion to Roth, any earnings accrued will never be taxed. However, if 14

15 you have substantial earnings in the Post-Tax Account before you convert, you will incur taxable income for those earnings when you convert. If you do not convert your entire Post-Tax Account then the taxable amount converted will be determined pro-rata by your contributions and earnings. For instance, you have $100,000 in your Post-Tax Account with $70,000 from contributions and $30,000 of earnings. If you were to convert $10,000 of this account to a Roth Conversion Post-Tax Account, $7,000 would not be taxable and $3,000 would be taxable and you would receive a 1099 for $3,000. DIRECTING YOUR INVESTMENTS You are responsible for monitoring and managing the investments in your PRAP account. You are generally permitted to change the investment allocations of your existing account balances and/or change the investment selections for your contributions as often as you like, subject to certain PRAP requirements. You may change your investment elections by logging onto your account at or by calling the PRAP Service Center at LOANS You may borrow money from portions of your PRAP account. The total loan value cannot exceed 50% of your vested PRAP account balance, and the amount you may borrow is limited to the following: You may borrow a maximum of 50% of your PRAP account balance or $50,000, whichever is less, reduced by your highest outstanding PRAP (including any outstanding loan in your PDAP or CAL 401(k) Plan account) loan balance within the last year. The minimum loan amount is $1,000. A one-time set up fee of $50 for each new loan. You may have a maximum of two outstanding loans from your PRAP account at one time. The general loan repayment term may be for 1 to 5 years. One of the loans may be a residential loan, and the maximum loan repayment term for a residential loan is 20 years. The interest rate on loans is set at the Wall Street Journal Prime Rate at the time the loan is taken, plus 1%. You may request a loan online at or by calling the PRAP Service Center at WITHDRAWALS AND DISTRIBUTIONS Since retirement plans such as the PRAP are designed primarily to help you save for retirement, the IRS restricts when money may be withdrawn or distributed. The IRS does, however, recognize certain events may present a need for you to access your retirement savings. Under the following circumstances, you may withdraw money from your PRAP account: In the event of financial hardship resulting in immediate and heavy financial need, Upon achieving age 59½, Upon termination of employment or retirement, Upon being furloughed for a period greater than 90 days, If permanently medically grounded (receiving PDI benefits), or In the event of disability (on Pilot Long-Term Disability for a period of 24 months or permanent disability determination by LTD committee). Your beneficiary(ies) may receive a distribution of your PRAP account balance following your death. 15

16 Hardship withdrawals are subject to government regulations and are allowed only on account of an immediate and heavy financial need, in an amount necessary to satisfy the financial need, plus any taxes associated with the hardship withdrawal. You must take all available withdrawals and loans from your pretax account prior to taking a hardship withdrawal. To qualify for a hardship withdrawal, your financial need must meet certain criteria as outlined in the plan document for the PRAP and be approved by PRAP Administrative Committee. If your hardship withdrawal request is approved, you will not be allowed to contribute to the PRAP for six (6) months after making this withdrawal (employer contributions will continue, if applicable). Voluntary post-tax contributions are available for withdrawals at any time. Review the Summary Plan Description available online at for the full detail of your PRAP account distribution and withdrawal options. Always consult your tax advisor or investment professional concerning potential tax consequences of any withdrawals. BENEFICIARY DESIGNATION Your beneficiary designation(s) will ensure that your account balance passes directly to your designated beneficiary(ies) in the event of your death. You are encouraged to complete the beneficiary designation section on From your main account page, go to Elect or Update Beneficiary from the Quick Links drop-down menu. You may also call the PRAP Service Center at ACCOUNT INFORMATION You may obtain account information through: PRAP Website: schwabplan.com/prap Retirement Plan Statement: quarterly via or U.S. mail Telephone: A NOTE ABOUT RISK The PRAP offers a variety of different investment options to meet the savings and investment goals of participants. As you make your investment choices, keep in mind that there is risk involved in any investment, and that the investment choices differ in growth potential and risk. The PRAP is intended to constitute a plan as described in ERISA Section 404(c). This means that the fiduciaries of the PRAP may be released from liability for any losses that are the direct and necessary result of investment instructions given by you or your beneficiary. DISCLAIMER The PRAP highlights presented above are only a brief overview of the PRAP s features. In the event of a conflict between these highlights and the official plan documents, the official plan documents will govern. 16

17 CHOOSING YOUR SAVINGS STRATEGY Your retirement investments could have a significant impact on your future financial well-being. Do you feel confident about making your own investment decisions? Would you like professional investment advice? Or would you like to invest in a portfolio that is comprised of a diversified selection of several funds designed to match a certain investment style? The PRAP contains a number of investment options designed to fit the way you prefer to invest for retirement. For example, you may prefer to have help and guidance selecting and allocating the investments in your accounts. Or you may enjoy selecting and managing your own investments without any assistance. Whatever your preference, the PRAP offers you the following strategies. Tier I Target Date Funds If you are looking for a single-fund approach to investing, the target date portfolios may be right for you. These portfolios provide an asset allocation glide path and are managed by investment professionals, becoming more conservative over time. Read the Target Date Funds section of this guide to learn more. Tier II Build Your Own Portfolio Core Funds You can invest in Core funds that have been selected by the PRAP s Investment Committee to address specific asset classes and investment styles. Most of the funds are managed by more than one investment manager. The goal of these multiple-manager strategies is to reduce the overall risk when compared to a single-manager approach. Read the Core Funds section of this guide to learn more. Retirement Plan Advice Powered by GuidedChoice If you are not as confident making your own selections, retirement plan advice is available for the PRAP. You can receive specific, personalized recommendations on how much to save for your retirement, which investments to select from the PRAP s investment lineup, and how much to invest in each investment option from GuidedChoice. GuidedChoice is an independent investment advisory service available through the PRAP. Read the Retirement Plan Advice section of this guide to learn more. Tier III Investment Options Beyond the PRAP If you are a hands-on and experienced investor, you can access a myriad of investment options for your retirement plan investments with the Schwab Personal Choice Retirement Account (PCRA). Designed for pilots with previous investing experience who want to actively monitor and select all their investments, this brokerage account lets you trade over 2,000 mutual funds, stocks, bonds, U.S. Treasuries, exchange-traded funds (ETFs), CDs, and options (covered calls and protected puts only) for greater investment flexibility. You may use this feature for up to 100% of your PRAP account. Read the Schwab Personal Choice Retirement Account section of this guide to learn more. 17

18 Target Date Funds If you lack the time and confidence to actively manage your PRAP investments, a Target Date Fund may be right for you. The Target Date Funds were designed specifically for PRAP participants. The Target Date Funds are managed by AllianceBernstein L.P., which is responsible for designing the asset allocation for the funds. The investment managers and portfolios underlying the Target Date Funds were selected by the PRAP Investment Committee in consultation with its investment advisor, Hewitt EnnisKnupp. Each Target Date Fund offers a diversified mix of investments, combining a variety of different underlying equity, bond, and real asset funds. Each Target Date Fund has a date in its name this is the fund s target date. The target date is the expected year of retirement when you would begin to gradually withdraw funds in retirement from your PRAP account. The table below shows the Target Date Funds based on date of birth and expected retirement age of 65, as selected by the PRAP. DATE OF BIRTH PRAP TARGET DATE FUNDS EXPECTED RETIREMENT DATE RANGE 1988 or after Target Date 2055 Fund 2053 or after Target Date 2050 Fund Target Date 2045 Fund Target Date 2040 Fund Target Date 2035 Fund Target Date 2030 Fund Target Date 2025 Fund Target Date 2020 Fund Target Date 2015 Fund Target Date 2010 Fund Target Date 2005 Fund Target Date 2000 Fund or before Target Date Retirement Fund 1997 or before In the event that a participant does not select investments, the PRAP has designated the Target Date Funds as the default investment alternative. If no birth date is on file with Schwab, the Target Date Retirement Fund will be used. Each Target Date Fund s asset allocation is automatically adjusted by AllianceBernstein L.P. as each fund moves toward its target date and beyond. Funds that are furthest away from their target dates start out invested almost entirely in equities to emphasize the growth potential you might need to build wealth over the long term. As you move toward and into retirement, the Target Date Fund automatically adjusts the allocation of investments to reflect your new investments to be consistent with your life stage. 18

19 When your selected fund reaches its target date, its investment allocation is 60% equities and 40% bonds. Your selected fund s final investment allocation, 15 years after the target date, is 30% equities and 70% bonds. The Target Date Funds include equities beyond your expected retirement date to help protect your savings from losing purchasing power due to inflation and to help reduce the risk of depleting your money during retirement. The values of the Target Date Funds will fluctuate up to and after the target dates. There is no guarantee the Target Date Funds will provide adequate income at or through retirement. Target date funds are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets, small company and sector equity securities, and fixed income securities subject to changes in inflation, market valuations, liquidity, prepayments, and early redemption. The Target Date Funds are built for investors who expect to start gradual withdrawals of the portfolio assets on a target date, to begin covering expenses in retirement. The principal value of each portfolio is not guaranteed at any time. Only you know when you plan to retire. Ensure that you are investing in the Target Date Fund that fits your retirement plans. More detailed information about the Target Date Funds, including fund expenses, can be found at The Target Date Funds may not be appropriate for all investors; therefore, the PRAP provides other investment solutions. BUILD YOUR OWN PORTFOLIO CORE FUNDS If you prefer choosing among a set of PRAP Core funds, you might want to build your own portfolio by selecting among a pre-selected menu of diversified funds, as listed below. If you are not as confident making your own selections, or you do not have the time to manage your account and do not want to invest in one of the Target Date Funds, the PRAP will offer you access to personalized retirement plan advice, powered by GuidedChoice. The PRAP Core investment choices cover a wide range of asset classes to help you build and manage your own retirement portfolio. The investment choice lineup has been crafted to give you a diverse range of investment options to accommodate your financial goals and time horizon. The asset 19

20 category, risk rating, and historical performance for each of the funds are just some of the factors to consider when making your retirement investment decisions. The funds and underlying investments listed in the chart below are as of December 31, Please note that the current funds and underlying investments might be different. FUND NAME UNDERLYING INVESTMENTS TARGET ALLOCATION Stable Value Fund Galliard Stable Value Fund 1, 3 100% Diversified Bond Fund PIMCO 1 Loomis 2 Chicago Equity Partners 1 50% 25% 25% Total Bond Index Vanguard Total Bond Market Index 100% Large Cap Value Equity Fund Westwood 1 Pzena1 60% 40% Total U.S. Equity Index Vanguard U.S. Market Index Fund 2 100% Large Cap Growth Equity Fund Sands 1 T. Rowe Price 1 50% 50% Small Cap Equity Fund NWQ 1 Global Equity Fund Snyder 1 Elk Creek 1 Penn 1 Dodge & Cox Global Stock T. Rowe Price Global Growth Stock 25% 30% 35% 10% 60% 40% International Equity Index Vanguard Total International Stock 100% International Equity Fund Dodge & Cox 2 MFS Instl International Equity DFA International Small Company Schroders % 33.50% 12% 21% Real Asset Fund PIMCO DRA 2 100% 1 This investment option is a separate account and is not a registered investment company product. 2 This investment option is a collective trust fund and is not a registered investment company product. DRA is an acronym for Diversified Real Assets. 3 Stable Value providers and retirement plan sponsors may impose an equity wash requirement on plan participants who want to transfer money out of a stable value fund and into a competing fund. Competing funds are defined as money markets, stable value funds, and bond funds with duration of fewer than three years. The Equity Wash rules state that assets cannot be transferred directly to competing funds. Instead, the money must be transferred to a different Plan investment option and held there for a minimum of 90 days before transferring into the competing fund. If you want to move balances from the Stable Value Fund to the PCRA, which is deemed to be a competing investment option in the PRAP, you must first transfer the balances to one (or more) of the other available PRAP investment options and the balances must remain in any non-competing investment for at least 90 days. 20

21 A profile is available for each fund available in the PRAP. To find more information about the funds offered in the PRAP, refer to the fund profile sheets available at or by calling the PRAP Service Center at Complete the Investor Profile Questionnaire an online tool designed to assist you in determining your investment time horizon and risk tolerance. The questionnaire may be viewed online at under the Quick Links menu. Then, select the funds that your investment objectives, and determine the percentage that you would like to allocate to each fund. You will need to re-evaluate your financial plan and investment risk regularly to meet your retirement goals. Building one s own portfolio may not be appropriate for all investors; therefore the PRAP provides other investment options. Investors should carefully consider information contained in the fund profiles, including investment objectives, risks, trading policies, charges, and expenses. You can view this information at Please read the fund profiles carefully before investing. RETIREMENT PLAN ADVICE POWERED BY GUIDEDCHOICE,Π Selecting the investments for your PRAP account could be one of the most significant financial decisions you ll ever make. The PRAP offers access to professional retirement plan advice, powered by GuidedChoice. You can receive personalized investment and saving advice all at no additional cost. The advice includes recommendations on: How much to save. Which specific funds to select. How much to invest in each of those funds. Advice will: Consider your PRAP assets. Provide recommendations on which funds to select from the Core funds available in your PRAP and how much to invest in these funds. Rebalance your PRAP account automatically once per year, unless you opt out of this service. Get recommendations online or by phone as often as you wish. Log on to or call to schedule an appointment through the PRAP Service Center at from 6:00 a.m. to 10:00 p.m. CT, Monday through Friday. You do not have to accept the advice that is provided by GuidedChoice and can opt out of advice at any time you wish. The retirement plan advice service may not be appropriate for all investors; therefore, the PRAP provides other investment options. SCHWAB PERSONAL CHOICE RETIREMENT ACCOUNT If you are a knowledgeable, experienced investor with the time and interest to conduct your own investment research and to monitor your investment performance frequently, then a Schwab Personal Choice Retirement Account (PCRA) may be right for you. The PCRA is a brokerage account that offers you access to investment choices in addition to those that are available in the PRAP s Core fund lineup. 21

22 With a PCRA, you take greater responsibility for researching investments before choosing options that are appropriate for a retirement portfolio. You are also responsible for monitoring your investments and rebalancing your portfolio as you see fit. Keep in mind that since PCRA is an optional account, PCRA investments may have initial and subsequent investment minimums depending on the investments you choose. For more information on charges and minimums, you can contact a Schwab PCRA registered representative at Many of the mutual funds offered through PCRA are available with no load and no transaction fees. Other funds may have a transaction fee (or a load) or a contingent redemption fee. Please refer to the fund prospectus for more information before investing or transferring money. You may invest up to 100% of your PRAP account in the PCRA. You may have up to three PCRA accounts. The following PCRA restrictions apply to all investments made via the brokerage window: No security that is not listed or NASDAQ traded. No United Continental Holdings, Inc. (UAL) securities. No security that produces a K-1. No security that is traded on a foreign (non-u.s.) exchange. No tax-exempt mutual funds. No tax-exempt fixed income funds. Each pilot with a PCRA will have the responsibility of complying with these restrictions. In accordance with applicable laws and plan documents, the PRAP Investment Committee has the right to permanently suspend the PCRA investment directions of participants who violate these investment restrictions. You must be enrolled in the PRAP to use the PCRA option. To open a PCRA, log on to and complete the PCRA Account Application and the Disclaimer and Limited Power of Attorney forms. These forms can be found under the Manage Account tab. Instructions for completing and submitting the forms will be provided as you access these forms online. Once the completed forms have been received by the PRAP Service Center, you will receive additional information that will allow you to trade within your PCRA. You can place orders in your PCRA as often as you like online through schwab.com or by calling a Schwab PCRA registered representative at between 7 a.m. and 9 p.m. CT. PCRA may not be appropriate for all investors; therefore the PRAP provides other investment solutions. ACCESS YOUR ACCOUNT Call the PRAP Service Center at or visit If you are accessing your account for the first time, your initial Login ID is your Social Security Number, and your initial password will be your fourdigit month and date of birth. For example, if you were born on June 15, your password would be

23 For security reasons, you will be prompted to create a new Login ID and password. If you call, you will be connected with a participant services representative. Representatives are available between 6 a.m. and 10 p.m. CT, Monday through Friday. You will be prompted to choose your investment option: Easy Enrollment (automatic 5% pretax and invested in applicable Target Date Fund) Advice at Enrollment Self-Directed Enrollment (build your own portfolio) Be sure to review the information on your funds prior to making your investment selections. Choosing a beneficiary. If you do not name a specific beneficiary for your PRAP account, the following automatic designations will apply: your spouse, if you are married; surviving children; or your estate, if you are single and have no children. You are encouraged to choose a beneficiary other than the automatic designation and complete the beneficiary designation section on From your main account page, go to Elect or Update Beneficiary from the Quick Links drop-down menu. Making a rollover. Consolidate your retirement savings accounts by transferring any balances from qualified retirement plans at previous employers or personal IRAs into the PRAP. You may obtain a form at Financial Advisors. Financial advisors can be compensated through the brokerage account. The UAL R&I Committee does not vet or recommend financial advisors. However, the ALPA National R&I Committee has approved Charles Schwab as a preferred advisor for ALPA pilots. Schwab has a team of certified financial planners (CFPs) that can help pilots with a free financial check-up and get reduced fees on financial plans and managed accounts. A pilot can also get reduced stock trading fees ($4.95 per stock trade, outside of the PRAP) in their personal account if you identify yourself as an ALPA pilot. The PRAP also charges pilots $4.95 per stock trade. 23

24 LEGACY UAL DEFINED BENEFIT The Pension Benefit Guaranty Corporation (PBGC) assumed control of the United Pilots Defined Benefit Plan ( United A-Plan ) on December 30, 2004 (date of plan termination, DOPT). The PBGC is a federal corporation established under the Employee Retirement Income Security Act (ERISA) of In addition to the United A-Plan, the PBGC currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in 30,330 privatesector defined benefit pension plans. Operations are financed largely by insurance premiums defined benefit plans pay to the PBGC and by investment income and assets from terminated plans. At DOPT, all benefits stopped accruing, and a snapshot was taken of all plan accruals to date. For the active pilot, this was a calculation looking at years of service in the United A-Plan, earnings history, and any other pertinent data to calculate what a participants benefit would be at normal retirement date of age 60. The PBGC sent all participants an initial estimate of benefit, and after a multi-year process of data and calculation reviews, they have sent all participants a final benefit determination. How Do I Know How Much I Will Receive at Age 60, Age 65, or Some Other Age? The easiest way to calculate your benefit at different ages is to request a benefit estimate from the PBGC specifying different benefit commencement dates. The PBGC will calculate your benefit based on these different dates. You can visit the PBGC website ( to establish a MY PBA account, or you may call them at to request a benefit estimate. The PBGC has assigned a case number of for the terminated United A-Plan. What is the PBGC Maximum Guarantee for the A-Plan? While this table stops at age 65, pilots can defer payment later than age 65 and continue to accrue a larger benefit. PBGC Maximum Monthly Guarantees for Plans Terminating in 2004 AGE 2004 STRAIGHT-LIFE ANNUITY 2004 JOINT AND 50% SURVIVOR ANNUITY 65 $3, $3, $3, $3, $3, $2, $2, $2, $2, $2, $2, $2, $2, $2, $2, $1, $1, $1, $1, $1, $1, $1,

25 How Do I Begin to Receive My Retirement Benefits from the PBGC? You must contact the PBGC at or through their website to start your benefit. You must be at least age 50 to draw a benefit from the PBGC, and you cannot be employed by United if you wish to begin drawing this benefit prior to age 60. What If I Decide to Continue to Fly Past Age 60? Under PBGC rules, you may begin collecting your retirement benefits from the PBGC at or after age 60, even if you continue to work as a pilot for United. When Can I Expect My First PBGC Pension Check? Subject to the proper completion of paperwork required by the PBGC, your first pension check will be payable as of the annuity starting date you elect, as permitted by the PBGC. In general, you may elect only a prospective annuity starting date. Your retirement date from United does not establish the commencement date of your benefits from the PBGC. You may only establish an annuity starting date by applying for benefits and filing completed paperwork with the PBGC. Are Benefits from the PBGC Taxable? Retirement benefits paid by the PBGC are subject to federal income tax. These benefits are also subject to state income tax in some states. Laws governing state taxation of retirement benefits vary from state to state. What Survivor Benefits Are Available? If you die prior to commencing your benefit, the PBGC automatically provides a preretirement survivor annuity to your spouse. If you are age 50 or older at the time of your death, your spouse will be eligible to apply for this benefit immediately, if desired. If you are under age 50, your spouse may begin to receive a benefit no earlier than the date you would have attained age 50 had you not passed away. If you are unmarried and die prior to commencing your benefit, no survivor benefits are paid by the PBGC. If you die after your benefits have commenced, your survivors may or may not receive benefits after your death, depending on the form of benefit you elected. If you choose a single or straight life annuity, there are no survivor benefits. If you are unmarried, this is the standard form of benefit. If you are married, the standard form of benefit is joint and 50% survivor annuity with your spouse as the beneficiary. If you were to die in this circumstance, your spouse would receive 50% of the benefit you were receiving. In lieu of these standard benefit forms, with your spouse s consent, you may elect to have your pension paid in one of the available optional forms of PBGC benefit. These include straight life annuity; straight life annuity with Modified Cash refund; 5, 10, or 15-year certain-and-continuous annuity; joint and 50%, 75%, or 100% survivor annuity; joint and 50% survivor pop-up annuity; and joint and 50% survivor with modified cash refund. A description of these optional forms of benefit can be found on the PBGC website or on the UAL MEC website under the retirement video series. 25

26 CONTINENTAL PILOTS RETIREMENT PLAN (CPRP) UPA SECTION 22-B CPRP/CARP The CPRP was frozen on May 31, All eligible pilots accrued a benefit up to that date, but no additional benefits have been accrued under the plan after that date. Each pilot participating in the Continental Pilots Retirement Plan ( CPRP ) and/or Continental Retirement Plan ( CARP ) on the effective date of the UPA shall remain a participant in CPRP and/or CARP. Neither the CPRP nor the CARP shall be modified, amended, or terminated with respect to pilots without the Association s consent. The Continental Retirement Board shall retain its existing authority with respect to pilot pension benefits under CPRP and shall continue to meet quarterly unless otherwise agreed to by the Company and the Association. Any Association members/alternates on the Continental Retirement Board shall be limited to pilots who were covered by the prior CAL CBA. Q. What are the CPRP payment options? A. There are four different types of payment options under the CPRP: Life Annuity, Joint and Survivor Annuity, Years Certain and Life Annuity, and Lump Sum. 1. Life Annuity: Defined benefit pension plans, like CPRP, are designed to provide lifetime income for the participant. Under a Life Annuity, a monthly benefit is payable only during the retiree s lifetime. This option produces the maximum monthly benefit but has no survivor benefit. All other benefit options are calculated from the Life Annuity amount. The normal form of annuity in CPRP for married pilots is a 50% Joint & Survivor Annuity (discussed below). By law, spouses must consent in writing to any other option elected by the pilot. 2. Joint & Survivor Annuity: Under a Joint & Survivor Annuity (J&S Annuity), a reduced monthly benefit is payable during the retiree s lifetime, with a percentage (50%, 66 2 /3%, 75% or 100%) of that monthly benefit payable for the life of a surviving beneficiary if the retiree pre-deceases that beneficiary. The retiree s benefit is reduced from the amount that would have been payable as a Life Annuity in order to provide the survivor benefit coverage. The reduction in monthly benefit at retirement is based on the survivor s percentage elected and the ages of the retiree and designated survivor beneficiary. 26

27 Example: A retired pilot with a spouse three years younger is due a Life Annuity of $100 per month. If the retired pilot elects the 50% J&S Annuity option, the retired pilot s monthly annuity is reduced to $91.66 in order to provide the 50% survivor benefit coverage. If the retired pilot predeceases the spouse, the spouse is then due a monthly annuity of $45.83 (50% of the reduced pilot monthly benefit) for the remainder of his/her life. If the spouse predeceases the retired pilot, the retired pilot s monthly benefit would remain at $91.66 for the remainder of the retired pilot s life. Similarly, a retired pilot electing a 100% J&S Annuity option would have the $100 Life Annuity reduced to $84.61 in order to provide the 100% survivor benefit coverage. If the retired pilot predeceases the spouse, the spouse would receive $84.61 for the remainder of his/her life. If the spouse predeceases the retired pilot, the retired pilot s monthly benefit would remain at $84.61 for the remainder of the retired pilot s life. The 50% J&S Annuity option for a retired pilot with a spouse six years younger would result in a reduction at retirement from $100 to $90.74 and the surviving spouse would receive 50% of this amount, or $45.37, if the retired pilot predeceases the spouse. 3. Years Certain and Life Annuity: Retirees can also elect to receive reduced monthly benefits for life that are guaranteed to be paid for at least 10, 15 or 20 years if the retiree dies prior to the end of the guarantee period. If the retiree outlives the guarantee period, payments continue to the retiree for life. This may be a valuable option for someone who has dependent children at retirement. For example, a 10-Year Certain and Life Annuity would provide payments to a beneficiary for the remainder of the 10-year period if the retiree died before receiving payments for 10 years. If the retiree lived past 10 years, the reduced monthly payments would continue for the retiree s lifetime. 4. Lump Sum: Under this option, the pilot receives one lump sum payment at retirement and no further benefits are payable from the plan. Below is an explanation of how the lump sum amount is determined. Lump Sum Theory The Lump Sum is derived from the Life Annuity benefit, and is designed to be actuarially equivalent to that benefit. That means if all of the assumptions used in the actuarial conversion hold true, the plan and the participant will be in no better position or worse position regardless of what option is selected. The Lump Sum is the actuarial present value, as of the Lump Sum payment date, of the stream of Life Annuity payments the retired pilot would have been expected to receive beginning at age 60 (or beginning at the lump sum payment date if over age 60 on that date). There are two assumptions that are used when calculating the actuarially equivalent Lump Sum. One is mortality, which is used to discount future annuity payments based on the probability the retired pilot would be alive to receive each payment. The other is interest, which is used to discount the future annuity stream to a present value at the date the Lump Sum is to be paid to reflect the time-value of money. Calculating Lump Sums under CPRP The mortality table required to be used in calculating lump sums is published by the IRS and generally changes each calendar year. Each subsequent table reflects slightly lower mortality (fewer expected deaths at each age). The effect of each new mortality table alone would be slightly higher lump sums, since there is a lower discount for future mortality. 27

28 The interest rates used in calculating lump sums are based on a corporate bond yield curve. The corporate bond yield curve interest rates used consist of three segment rates. The first segment rate is used to discount annuity payments that would be made in the next 5 years. The second segment rate is used to discount annuity payments that would be made in the following 15 years (years 6 through 20). And the third segment rate is used to discount annuity payments that would be made thereafter (years 21 and beyond). Since these segment rates are used to discount the future Life Annuity benefit stream, higher interest rates produce lower lump sums and lower interest rates produce higher lump sums. Pilots with last day of employment from June 1 through November 30 who complete their retirement paperwork in a timely manner and elect a benefit commencement date of July 1 through December 1 have their lump sum benefit based on the segment rates from the month of February of that calendar year. Pilots with last day of employment from December 1 through May 31 who complete their retirement paperwork in a timely manner and elect a benefit commencement date of January 1 through June 1 have their lump sum benefit based on segment rates from the month of August of the prior calendar year. The lump sum conversion factors are calculated based on the pilot s age on the benefit commencement date elected by the pilot. Q. Where can a pilot find out their CPRP benefit? A. Pilots can go to the YBR and determine their CPRP payments for the different payment options. Realize that the lump sum amount will change over time depending on changes to actuarial tables and changes to interest rates. Q. When a pilot provides notification of retirement, when will they receive their retirement benefits? A. Unless the pilot defers payments to a later date, the pilot will begin receiving benefits on the first day of the month following their last day of employment. This is the day the pilot will receive the lump sum or first monthly payment, if the pilot has given the benefits administrator sufficient notice and completed all of their CPRP elections in a timely manner. Example: If a pilot s last day of employment falls on March 1 through March 30, and the pilot has reached their early or normal retirement date, then the date benefits commence would be April 1. Q. Can the lump sum option be terminated through contract negotiations? A. No. The lump sum option is a protected benefit under IRC Section 411(d)(6). Therefore, the Company and ALPA cannot agree to eliminate this method of distribution under the CPRP. Q. How does the claims procedure under the CPRP work? A. The CPRP claims procedure works as follows: Step 1: If a pilot disagrees with the calculation of his or her CPRP benefit, has a dispute about the information used to calculate the CPRP benefit, or has another dispute about the information provided on the pilot s CPRP benefit statement, the pilot s first step is to bring this to the attention of the Company s Benefits Department. The pilot should send a letter to: United Airlines, Inc., 233 S. Wacker Drive, WHQHR, Chicago, IL 60606; c/o Suzanne Hobbs, Retirement Board Continental Pilots Retirement Plan (the Benefits Administrator ). The letter should explain the dispute from the pilot s perspective, cite to the CPRP section(s) that supports the pilot s position, furnish any additional information the pilot has in support of the claim, and request the remedy for the situation. If the Benefits Administrator agrees with the pilot, then the error should be corrected in a timely manner. 28

29 Step 2: If the benefits administrator cannot make a decision, then the request will be forwarded to the CPRP Administrative Committee for a determination. The CPRP Administrative Committee is a committee of United employees (management) appointed by the president of United. Alternatively, if the benefits administrator denies a pilot s request in Step 1, then the pilot may request a review by the CPRP Administrative Committee by directing a request for review to: United Airlines, Inc., 233 S. Wacker Drive, WHQHR, Chicago, IL 60606; c/o Suzanne Hobbs, Retirement Board Continental Pilots Retirement Plan (the Benefits Administrator ). If a pilot s request is denied by the CPRP Administrative Committee, then the pilot may appeal the denied claim to the CPRP Retirement Board, within 60 days following receipt of the disputed payment or determination to preserve his or her rights. Step 3: Under this step, the pilot may request that the CPRP Retirement Board review the denied claim for benefits. The CPRP Retirement Board consists of two ALPA representatives and two Company representatives. The pilot should send a letter to: United Airlines, Inc., 233 S. Wacker Drive, WHQHR, Chicago, IL 60606; c/o Rainier Villatuya, Retirement Board Continental Pilots Retirement Plan (the Retirement Board ). We also recommend a copy of the letter be ed to UALMECRI@alpa.org. The CPRP Retirement Board will review the record of the claim and any material submitted by the pilot concerning his or her claim for benefits. If the CPRP Retirement Board deadlocks, then the pilot has a right to go to arbitration. In arbitration, a third party neutral is selected to hear the case, and the Board sits as a System Board of Adjustment under the Railway Labor Act. The cost of arbitration will be borne 50% by the Company and 50% by ALPA. An election to arbitrate must be made by the pilot within 60 days after the pilot is informed of the Retirement Board s deadlock. Q. Will ALPA represent me if my claim for benefits has been denied? A. Yes, ALPA will assist you with a request for a benefits determination or with an appeal of a denied claim for benefits to the CPRP Retirement Board. ALPA will also represent you in an arbitration if the CPRP Retirement Board deadlocks. If you need assistance with a denied benefit claim, contact Victoria Fortuna, ALPA senior benefits attorney, at Q. If the plan administrator makes a mistake in the calculation of my benefit, do they have to correct it for me and for other pilots? A. Yes, if the plan administrator makes an error in the calculation of your benefit, they must correct it, and if the same error applied to other pilots, they must make that correction as well. This principle applies whether the correction is in your favor or not. The plan administrator is obliged to follow the written terms of the CPRP for all pilots. Q. Would a bankruptcy by United automatically threaten CPRP? A. A bankruptcy filing has no automatic effect on a defined benefit plan such as CPRP. Our CBA covers our benefit plans. Therefore, no changes can be made without ALPA consent, except through a Bankruptcy Code Section 1113 proceeding (described later), and through satisfying ERISA standards in the case of a plan termination. Q. Can the Company change the CPRP in bankruptcy? A. Benefits that are subject to an agreement between ALPA and cannot be changed unilaterally. If management wants to make a change to our CBA while in bankruptcy, they must undertake a negotiation process described in Bankruptcy Code Section If no agreement is reached, management can file a motion with the bankruptcy court, requesting that the CBA be rejected in order to permit them to impose new terms and conditions. Their new terms and conditions could include proposed changes to the retirement benefits. If the Company and ALPA reach 29

30 agreement on the proposal, including changes to CPRP, those changes would go into effect. If they do not reach agreement, the Bankruptcy Court would hold a hearing on the rejection motion. Q. Does a bankruptcy automatically lead to a CPRP distress termination? A. No. A retirement plan remains in existence until it is terminated in accordance with applicable non-bankruptcy law. U.S. Bankruptcy law covers two basic situations: Chapter 11 Reorganization Chapter 7 Liquidation In a Chapter 11 bankruptcy, a corporation seeks relief from creditors, seeks negotiated compensation and benefit concessions from unionized employees, imposes concessions on non-union employees and management, and seeks operational savings. It may also shed unprofitable segments of its business. During bankruptcy, corporations attempt to negotiate concessions from employees and vendors. Corporations often seek to reduce wages, pension benefits, and retiree liability, such as liability related to retiree medical insurance. Distress terminations of defined benefit plans can occur during Chapter 11. During a Chapter 7 bankruptcy, all retirement and welfare plans are terminated, since the company sponsoring them no longer exists at the end of the bankruptcy process. Q. What happens if the pension plan is terminated in a distress termination? A. First, management must issue a Notice of Intent to Terminate the plan to each participant and to ALPA and the PBGC at least 60 days and not more than 90 days before the proposed termination date. To do so, the company must be able to state that it expects that a distress termination of the plan will occur on the proposed termination date. Effective upon issuance of the notice, there would be no further lump-sum distributions paid from the CPRP until and unless it is later determined that the company did not meet the requirements for a distress termination. For example, it might be determined that management s intended termination of the plan would violate the CBA or that termination of the CPRP is not necessary for the company to reorganize and emerge from bankruptcy. In either of these situations, the Notice of Intent to Terminate would be voided retroactively, and the payment of lump-sum distributions would resume, including those to pilots whose payments had been suspended. Assuming a distress termination is approved, all pilots benefits will be divided among priority categories under the rules of the PBGC. Q. What CPRP benefits would be guaranteed by the PBGC in the event of a distress termination? A. The determination of benefits guaranteed by the PBGC is a very complex undertaking. Pilots who retired prior to the plan termination and who received the lump sum payment would not be owed anything further by the plan and therefore would not be included in this analysis. If CPRP terminates on or after 12/28/2016 (beyond the 10-year period beginning 12/28/2006), then the normal rules apply to the PBGC dollar guarantees. In that case, it would be the table in effect at the date of plan termination. Assuming that the plan is terminated while the sponsor is in bankruptcy (which is almost always the case for distress or involuntary terminations) the date of plan termination for purposes of applying the PBGC dollar guarantees is based on the bankruptcy filing date. 30

31 The following table shows the PBGC monthly dollar guarantee limits for single life annuity applicable for plans terminating in 2017 at various ages. The table of dollar guarantees generally goes up each year based on indexing provided in the law. The age used would be the later of age at the date of plan termination or the age at which benefits commence. The table of limits that applies is generally the table in effect for the calendar year containing the date of plan termination (which is usually the bankruptcy filing date). MONTHLY 2017 PBGC DOLLAR GUARANTEES AGE* SINGLE LIFE ANNUITY 50 $1, $2, $3, $5, $8, $15, * Later of age at the date of plan termination or the age at which benefits commence. 31

32 MEDICAL PLANS UPA SECTION 24-B BACKGROUND Our medical and dental plans are sponsored by United Airlines. United subcontracts the administration of the medical plans to Aetna and Blue Cross/ Blue Shield (Kaiser in certain HMOs). Your enrollment in either the Aetna or Blue Cross networks is determined by your state of residency. The dental plans are administered by MetLife. In addition, United has outsourced several administrative functions for portions of medical care such as wellness and mental health to other vendors. It is notable that United self-funds almost all medical and dental plans except a few HMOs that are fully insured. The following information is applicable to active pilots. Retiree Medical is covered in a different section. Under the United Pilot Agreement, the following medical plans were offered to all participants beginning in 2014: Core Medical PPO Core Medical EPO Core Medical High Deductible Health Plan (HDHP) with Health Savings Account (HSA) Select Regional Medical Plans described in Subsection 24-B-6 Required International Medical Plan Optional medical plans provided at Company discretion Pilots will be eligible for any additional medical plan offered to any other employee group (pilot premiums do not have to equal other employee groups premiums) United is required to offer pilots three Core medical options and a Core dental option, each with a contractually specified plan design. Pilot contributions cannot exceed 20% of the cost of the Core plan and are protected against year-over-year increases in excess of 9.25%. Reference Appendix A Locked In Plan-Designs, for more details on the Core Medical Plans design differences. Certain HMOs have been offered to pilots in the past and are designated Select Regional Medical Plans. These HMOs must be offered unless enrollment declines, or the HMO s rates increase in excess of standards set in UPA Section 24. Like the Core Medical Plans, pilot contributions to the Select Regional Plans cannot exceed 20% of the cost of the plan. In addition to these contractually-required plans, United may offer other medical plans of its own design (called Optional Plans ) and must offer to pilots all medical plans it offers to other employee groups. Although United can set the required contributions for Optional Plans at a different rate for pilots than for other employees, pilots cannot be required to pay more, in the aggregate, than 20% of the cost of all medical plans (including the Optional Plans and not including the Core High Deductible Health Plan), taken together. All medical and dental plans are subject to the annual costing provisions of UPA LOA 5 Medical and Dental Rate Setting. 32

33 Who is covered under the Core Medical PPO Plan? The Plan covers you and your eligible dependents. Your eligible dependents are: Your spouse or domestic partner, and Your dependent children, as follows: Children up to age 26. Disabled dependent children over age 26: The disability must be established prior to age 26, and the status will be periodically reviewed for continued eligibility. What are the differences between a PPO, EPO, HMO, and HDHP? Preferred Provider Organization PPO A PPO offers the greatest choice in health-care coverage. Participants can go in or out-of-network and have subsidized medical costs, see specialists without a referral, and generally enjoy greater flexibility. This increased coverage comes at a price, as the PPO is typically a more expensive option than a plan that allows only in-network subsidized coverage (such as EPO or HMO medical plan), all else being equal. Physicians, medical groups, and services are either In network or Out of network. In network services have negotiated rates with the plan administrator and these services are usually less expensive with a higher cost sharing from the company than if you visit an Out of network provider. Exclusive Provider Organization EPO An exclusive provider organization is a hybrid between a PPO and an HMO plan. The plan covers only in-network care providers similar to an HMO, but the in-network group is national, consistent with a PPO. In an HMO, one must select a primary care physician who must make referrals so that you can see a specialist. In an EPO there is no requirement to see a primary care physician before seeing a specialist. Typically, the EPO will have lower annual premiums similar to the HMO; however, the option of going out-of-network will be totally at the expense of the participant. Health Maintenance Organizations HMO HMOs are offered by geographical regions. HMO participants remain within a much smaller local network compared to a PPO or EPO. When utilizing services within an HMO, you are required to specify your primary care physician (PCP) who manages and directs your care. HMO participants must go through their PCP for specialist referrals. High Deductible Health Plan (HDHP) with Health Savings Account (HSA) An HDHP is similar to a PPO with both In and Out of network benefits. You must meet the higher deductible in the HDHP before the plan pays benefits on your behalf. An HSA is linked with the Core HDHP, and you can use the HSA to pay for the substantial out-of-pocket expenses of the plan. Unused contributions to the HSA stay in your account and are available for use for out-of-pocket expenses in subsequent years. Any balance in an HSA when the pilot leaves the company is portable, and may be used to pay for retiree medical expenses. You may make contributions to your HSA up to certain statutory limits (see below). Since HDHPs have substantial deductibles and out-of-pocket expenses, the annual premiums generally are more economical than traditional alternatives such as PPOs, HMOs and EPOs. The company also provides annual seed money to help fund the HSA in the Core HDHP. The company contribution is $750 for pilot only coverage and $1,500 for pilot and dependent coverage. 33

34 TRICARE United currently offers a Tricare supplemental plan for pilots and their dependents who are enrolled in Tricare as their primary health plan. Since this is a supplemental plan to Tricare, the wellness credit and spousal surcharge are not applicable to this benefit. This is available to active pilots and before Medicare retirees. According to the Tricare website ( the following uniformed service members and their families are eligible for Tricare health-care coverage: Active duty and retired members of the U.S. Army, Air Force, Navy, Marine Corps, and Coast Guard Commissioned Corps of the U.S. Public Health Service Commissioned Corps of the National Oceanic and Atmospheric Association Survivors Former spouses Medal of Honor recipients and their families Others registered in the Defense Enrollment Eligibility Reporting System Active pilots will have their premiums for their United health coverage deducted from their pay advice on a before-tax basis just like other active health premiums. These tax savings can be substantive and if you are looking to purchase a Tricare supplemental plan; we recommend reviewing the United offering. MORE ON HSAs A Health Savings Account (HSA) is an account that allows employees and/or employers to contribute pretax dollars, up to certain limits. Amounts contributed may be used for reimbursement of qualified medical expenses. Contributions, earnings, and qualified distributions are tax-free. You must be enrolled in a High Deductible Health Plan (HDHP) in order to be eligible to make contributions and receive company contributions to an HSA. Also, with limited exceptions, to be HSA eligible, you must not have other medical coverage in addition to the HDHP. Pilots with Tricare are not allowed to have an HSA as Tricare is not a HDHP. Once amounts are contributed to an HSA, you may use them in later years even if you are participating in another plan that is not an HDHP. The maximum amounts that can be contributed to an HSA for 2017 are $3,350 for single coverage and $6,750 for family coverage (this is combined employer and employee contributions). For participants who are age 55 or older, an additional catch up contribution of up to $1,000/year may be made on a pretax basis via payroll deduction. If the pilot s spouse is age 55 or older, he or she may also make a $1,000 catch up contribution. However, a spouse contribution cannot be made via payroll deduction. HSA contributions made for a spouse must be made by check to a spouse s separate HSA. For contributions made by separate check in lieu of a payroll deduction, the tax benefit may be realized on the tax return using IRS Form Catch up contributions may be made as late as April 15 of the following year, much like IRA contributions. Note that, for the purposes of IRS Form 8889, the contributions you make through payroll are considered employer contributions to a cafeteria plan, rather than employee contributions. As such, when completing this form, these contributions should not be included in line 2. When properly completed, Form 8889 will ultimately determine what HSA contributions, if any, should be reported on Form

35 Individuals can cash out their HSAs for purposes other than medical expenses, but these distributions are subject to both income tax and a 20 percent penalty tax if received before age 65 (except in cases of disability or death). Unused amounts in one year can be carried over to following years and added to subsequent contributions. How are drugs covered in the medical plans? All medical plans include prescription drug coverage. CVS/Caremark is the pharmacy benefits manager for all plans administered by Aetna and BC/ BS. The programs continue to operate in the way pilots are familiar with: you can buy 30-day supplies of prescription drugs at retail pharmacies you are used to using, by paying the applicable copay. For maintenance drugs (i.e., any drug taken continuously over a 90-day period), you are required to use Caremark s mail order service, which will provide a 90-day supply of the drugs prescribed to you and your dependents. You also have the option to get a 90 day refill filled at any CVS retail pharmacy. Notably, the amount of your copay depends on the way the plan classifies your prescribed drug. All the plans now use a drug formulary, which is a list of all drugs, classified according to their cost to the plan. Under the Core plans, this is a 3-tier classification: generic (the cheapest with the lowest copay), branded preferred (which is a non-generic form of the drug whose manufacturer has a discount agreement with the plan), and branded non-preferred (the most expensive with the highest copay). We encourage you, if you have prescriptions for important and potentially expensive drugs and are considering a non-core plan, to check the prescription drug formulary of the plan to be sure that your prescription (or a pharmaceutical equivalent, acceptable to your doctor) are covered and to verify the copay applicable to each of your family s prescriptions. How do application of deductibles and out-of-pocket maximums vary among medical plans? Most medical plans have deductibles. Usually the deductible must be met before a plan begins to pay covered medical expenses but sometimes a copay is all that is needed. Medical plans also have dollar ranges or coinsurance bands of expenses in which the expense is paid partly by the participant and partly by the plan (e.g., on an 80%/20%, 60%/40% or other percentage basis), copays (set charges paid by the participant for certain services or supplies such as doctor s office visits, emergency room services, and prescription drugs), and limits on the maximum out-of-pocket expenses. These deductibles, coinsurance provisions, copays, and out-of-pocket limits vary from plan to plan but are limited in total by the UPA or the Affordable Care Act. Medical copays will apply to the medical out-of-pocket limit, while drug copays will apply to the pharmacy out-of-pocket limit. Please check with the plan you selected for details. Also, in order to encourage participants to use the services of providers who are part of the network that has agreed to charge the plan discounted rates, the amount of the deductibles and out-of-pocket maximums for in-network services and supplies will be more favorable than for out-ofnetwork services, but may be different between plans. Some plans notably EPOs do not cover out-of-network services at all. There may also be differences between plans in the way the in-network and out-of-network deductibles and maximum limits apply and cross-apply. For example, under some plans, the in-network and out-of-network deductibles and out-of-pocket limits are fully cross-applicable, so an expense counts against both the participant s in-network and out-of-network deductibles and out-of-pocket limits regardless of whether the expense itself was in- or out-of-network. In other plans, out-of-network expenses may count against both in-network and out-of-network deductibles and out-of-pocket limits, but in-network expenses may count only against in-network deductibles and in-network out-of-pocket limits. In general, the more favorable a plan s deductible, coinsurance, copay and out-of-pocket limits are for the participant, the more the participant will have to pay in required monthly contributions, and vice versa. So, as you are shopping for the best plan, you should take into account your and your family s expected utilization of medical services in the upcoming year and whether you want to rely on services of providers who would be out-ofnetwork for the particular plan you are considering. If you have significant ongoing medical expenses, you may find it is more financially beneficial to choose a plan that requires higher contributions but has lower deductibles, coinsurance, copays and out-of-pocket limits. On the other hand, if you are 35

36 single and healthy, or you are married and you, your spouse and your family, are healthy, you may be better served by a plan that has lower employee contributions, but has higher deductibles, coinsurance, copays and out-of-pocket limits. And, if it turns out in hindsight that you made the wrong choice, you can change plans at the next annual enrollment. One further point regarding deductibles and out-of-pocket limits: plans typically provide one deductible and out-of-pocket limit for the individual and a different (higher) deductible and out-of-pocket limit for family. In the pilot plans, this means that each individual family member must satisfy the individual deductible and out-of-pocket limit, or in aggregate must satisfy the family deductible and out-of-pocket limit, whichever happens first. The one exception is our Core HDHP. The HDHP has what is called a true family deductible. In the HDHP, the individual deductible and out-of-pocket limit is applicable only to participants who elect single coverage. Under the HDHP family coverage, the family deductible continues to apply for all family members, and the family out-of-pocket limit does not kick in for any family member, until the aggregate expenses of all family members equal the family deductible and the family out-of-pocket limit has been reached. Example: Joe Pilot has selected the family Core Medical PPO option for coverage for his family, covering himself, his wife, and two children ages 10 and 12. The deductible is $300 for single and $600 for family, and the out-of-pocket maximum is $2,000 for single and $4,000 for family. Joe hurts his knee and sees his primary care physician. His physician advised him to see a specialist. The specialist did testing and ultimately surgery. The entire cost of his care is $8,725. How the costs are split between Joe and the company are as follows: PROCEDURE COST JOE AETNA REMAINING DEDUCTIBLE REMAINING OUT-OF- POCKET MAXIMUM $300 $2,000 Office Visit (OV) $100 $25 (copay for OV) $75 $300 $1,975 Specialist Visit $150 $40 (copay for specialist OV) $110 $300 $1,935 X Ray $375 $315 $60 $0 $1,620 MRI $1,000 $200 $800 $0 $1,420 Surgery $7,100 $1,420 $5,680 $0 $0 Total $8,725 $2,000 $6,725 $0 $0 Even though Joe has family coverage, each individual covered by the plan cannot pay more than the single deductible and out-of-pocket maximum. Note that copays do not count toward the deductible but do count toward the out-of-pocket maximum. In this example, Joe pays 100% of the charges until he reaches his deductible limitation of $300. After that, he will pay 20% of all charges until he reaches his out-of-pocket maximum of $2,000, including the deductible and copays. 36

37 If anyone else in Joe s family went to a doctor, their expenses would count toward the remaining family deductible of $600. Joe has paid $300, so the remaining family deductible amount is $300. The family out-of-pocket maximum is $4,000, and Joe has paid $2,000; therefore, the remaining amount is $2,000. Again, copays do not count toward the deductible but do count toward the out-of-pocket maximum. What medical expenses are covered under the Core Medical Plans? The Core Medical Plans are the only plans that are required to conform to the contractually mandated definitions below. COVERED EXPENSES Covered Expenses with respect to the Core Options are the expenses actually incurred by or on behalf of an Employee or a Dependent for the charges listed as Covered Expenses in Appendix B but only to the extent that the expenses are: 1. Incurred while such individual is covered under the Core medical option; 2. For services or supplies provided, prescribed or recommended by an eligible provider; 3. Determined by the plan administrator or its delegate to be medically necessary; 4. If for charges made by a network provider (other than a remote area provider), not in excess of the charges allowed under the provider s agreement with the claims administrator or plan administrator; and 5. Not excluded under the terms of the program. MEDICALLY NECESSARY Medically Necessary means that the services or supplies are, in the determination of the plan administrator or its delegate: 1. Appropriate and required for the diagnosis or treatment of the patient s condition; 2. Safe and effective in curing or materially alleviating the patient s sickness or injury according to accepted clinical evidence reported by generally recognized medical professionals or publications or provided in a clinically controlled research setting using a specific research protocol that meets standards equivalent to those defined by the National Institutes of Health for a life threatening or seriously debilitating condition; and 3. Required for reasons other than the convenience of the patient, licensed physician, or other eligible provider; provided that there is not a less intensive or more appropriate place of service or diagnostic or treatment alternative that could have been used in lieu of the place of service or service or supply given, consistent with the nature and severity of the patient s sickness or injury based on accepted clinical evidence; and further provided that the services or supplies are not educational, investigational/experimental, obsolete, or done primarily for research. A determination of medical necessity may apply to an entire service or supply or to any part of the service or supply. When the term medically necessary is used to describe inpatient care in a hospital, it also means that the patient s medical symptoms and condition are such that the service or supply cannot be provided safely to the patient on an outpatient basis. Reference Appendix B for more details on Covered Expenses under the Locked-In Health Plans. 37

38 Reference Appendix C for Excluded Services under Locked-In Health Plans. What is the annual enrollment? Every fall pilots enroll in benefit plans for the following calendar year. This is referred to as the annual enrollment. What are life events? Generally, once you make your medical elections for a plan year (calendar year in our case), you and your enrolled dependents must stay in that plan with the coverage elections you made until the next annual enrollment. However, if you have a life event, you may be permitted to make certain changes consistent with that event. Examples of life events are: Marriage or divorce. Birth or adoption of a child. Death of a dependent. Loss of other health coverage. Move to new location. The Benefits Center must be notified within 45 days of the life event if you wish to make changes to your coverage. Moving (changing your address of record) is also considered a Life Event for purposes of changing your health coverage election if the previous health coverage is no longer offered in the new location. For example, you are enrolled in a California HMO and have moved to Chicago. The California HMO is not an option in the new location; therefore, you would need to change your health plan to an option offered in the new area to receive medical benefits. This change also needs to be done within 45 days of the life event (moving). During annual enrollment pilots can review all of the medical plans available to them by going to the Your Benefit Resources ( YBR ) website. There is a tool on YBR to compare all medical plan provisions (deductibles, out-of-pocket maximums, copays, etc.). Plan provisions change every year, except for the Core Medical Plans, so even if you enjoy your current medical plan it is in your best interest to review any changes to your plan and compare to other plans. What are the wellness credit and spousal surcharge? There are two important items that need to be certified during annual enrollment. One is your tobacco-free status, which will provide a $48 wellness credit ($96 total if married and the spouse is in the medical plan and tobacco-free). The other is a spousal surcharge, also known as alternative medical coverage premium, which is an additional premium of $50 per month, if your spouse or domestic partner has subsidized medical coverage available through another employer and you enroll them in your United medical plan. How is preventative health covered in our medical plans? Preventative services are covered at 100% before deductible under all United Core Medical Plans reference Appendix D. Do I have to verify/certify my dependents? Yes. You will certify that your dependents are still eligible to be covered under your benefit plans. If you have new dependents to cover, you will need to provide documentation that completes the verification process. 38

39 What is NetCare? NetCare Plans are HMOs that are limited to Guam. If you live in Guam, these plans will show up on your YBR page as an option to you during annual enrollment or if you have a life event. I received a judgment or payment from an insurance carrier for medical expenses, do I have to turn that money over to UAL? Pilots are required to reimburse UAL for medical expenses the UAL medical plan paid but that the pilot received from another party. UPA Section 24-J covers this provision. If you receive a judgment and want to discuss your obligations, please reach out to the R&I Committee at UALMERI@alpa.org, and we can discuss your situation. CLAIMS ISSUES If you believe that your claims are not being processed correctly, or if you would like to challenge any claim denials, you have the right under our plans to request an appeal. The Summary Plan Description (SPD) will outline the proper procedure to initiate an appeal. We offer this advice when dealing with your claims under the medical and dental plans: Be patient, courteous, and polite. Keep complete written records. Copies of all documents must be retained. Keep careful notes of telephone conversations, including date, time, name and title of person you talked with, and a detailed summary of all these conversations. Clerical errors will be promptly corrected once you demonstrate that there was in fact an error. Let your physician or other health-care professional deal with Aetna or any of the other service providers whenever possible. If you have exhausted all the administrative appeals available without success in resolving the problem, please contact the UAL MEC R&I Committee through the pilot data reporting system or at UALMECRI@alpa.org, and we can help you determine if there are other avenues available to you. 39

40 DENTAL UPA SECTION 24-C Core Dental Option The Core Dental Option is offered to all pilots and their dependents. The plan covers preventative and diagnostic services, as well as major and minor restorative services, both in and out-of-network. Like the medical plans, the dental PPO has an 80/20 cost share and a cap on annual premium escalation of 9.25%. The dental plan has the following coverage: PLAN DESIGN FOR CORE DENTAL OPTION BENEFIT FEATURES TRADITIONAL PPO DENTAL BENEFITS ANNUAL DEDUCTIBLES IN-NETWORK OUT-OF-NETWORK* Individual $50 $50 Family (2 members of family must each satisfy individual deductible) $100 $100 Annual Benefit Maximum $2,000 $2,000 Orthodontics Lifetime Maximum $2,000 $2,000 Office Visit Copay $0 $0 PREVENTIVE and DIAGNOSTIC SERVICES Dental Cleaning, Topical Application of Fluoride, Sealants, and Space Maintainers 100% covered before deductible. Frequency and/or age limitations may apply to these services % covered before deductible. Subject to reasonable and customary limits. Frequency and/or age limitations may apply to these services. MINOR RESTORATIVE SERVICES Fillings, Endodontics, Periodontics, Oral Surgery Covered up to 80%; after deductible. Covered up to 80%; after deductible. Subject to reasonable and customary limits. MAJOR RESTORATIVE AND PROSTHODONTICS Initial Placement of Dentures or Bridges to One or Covered up to 50%; after deductible. Frequency and/ More Natural Teeth Lost While Covered by the Plan; or age limitations may apply to these services. Inlays and Crowns (Porcelain or Stainless Steel) ORTHODONTICS Exams, X-Rays, Models, Appliances (Adult and Child) Additional provisions set forth in the plan document. *Out-of-network reimbursement is subject to reasonable and customary limitations. Covered up to 50%; after deductible. Frequency and/ or age limitations may apply to these services. Covered up to 50%; after deductible. Subject to reasonable and customary limits. Frequency and/or age limitations may apply to these services. Covered up to 50%; after deductible. Subject to reasonable and customary limits. Frequency and/or age limitations may apply to these services. OPTIONAL DENTAL PLANS Pilots and their dependents have the right to participate in any optional dental plan offered by the company. These plans are not contractually required and, as such, have coverage and pricing determined solely by the company. These plans can be modified or discontinued at any time.

41 VISION PLANS UPA SECTION 24-D The company must make available to pilots and their dependents, any vision plan offered to another employee group. These plans are provided at the sole discretion of company management, and the price and coverage are subject to change annually. 41

42 FLEXIBLE SPENDING ACCOUNT PLAN (FSA) UPA SECTION 24-E Active pilots are eligible to participate in the company s flexible spending account plan for health and dependent care expenses by making an election to contribute a portion of their pay. This is done on a pretax basis, and any monies not used by the end of the reimbursement period will be forfeited to cover plan expenses. The maximum election for the health spending account is the IRS limit, currently $2,600 for The maximum election for the dependent spending account is $2,000 for pilots making over $115,000 in Pilots making less than $115,000 can elect up to $5,000 in Expense reimbursement can be accomplished in a number of different ways: FSA debit card. Automatic reimbursement from your account via the medical plan (crossover). Manually submitting eligible receipts to the FSA administrator. FSA-eligible expenses include, but are not limited to, the following expenses to the extent not paid by the medical plan: Prescriptions. Copayments. Office visits. Dental. Over the counter medicines, drugs, and supplies (such as contact lens solution), but only if prescribed. Vision. Chiropractic care. Psychological therapy. Laboratory services. Orthodontia. Hospital fees. Allergy medication, treatment, and products. FSA-ineligible expenses include, but are not limited to: Insurance premiums. Adoption fees. Cosmetic procedures or surgery. Cord blood storage. Dental products for general health. Electrolysis. Marriage counseling. Long-term disability premiums. Retiree Medical. 42

43 RETIREE MEDICAL BENEFITS UPA SECTION 24-F If you are at least age 50 and have at least 10 years of service at the time you retire, you qualify for retiree medical benefits. The type of coverage varies depending on whether or not you are eligible for Medicare. BEFORE-MEDICARE ELIGIBILITY The Before-Medicare Retiree Medical Plan coverage is identical to the active pilot plans except the premiums are increased. You can stay in these plans until you reach age 65 or become Medicare-eligible (whichever comes first). When you become Medicare eligible, you will move to the After-Medicare Retiree Medical Plan. Your eligible dependents will remain in the Before-Medicare Retiree Medical Plan until they become Medicare-eligible. Retired pilots who elect retiree medical benefit coverage for themselves and their eligible dependents are required to make contributions for each month of coverage. The cost of coverage is determined by the plan chosen and the number of years of active service completed by the pilot. The amount of active service determines the participant percentage cost share as illustrated here: YEARS OF SERVICE PILOT S PERCENTAGE OF COST Fewer than 20 80% of total cost % of total cost Greater than 25 40% of total cost When first eligible, and during any subsequent annual enrollment, a retired pilot may elect from among the same options as are available to active pilots. ELIGIBILITY FOR AFTER-MEDICARE When first eligible, and during any subsequent annual enrollment, a retired pilot may elect from among one or more supplemental plans to Medicare offered by the company. Once you become eligible for Medicare your coverage in the Before-Medicare Medical Program will end, and you will be eligible to make an election in the After-Medicare Medical Program. Eligible individuals must pay a monthly contribution for the cost of After-Medicare coverage. The monthly contribution is equal to the total projected cost of such After-Medicare coverage for the calendar year, per person, minus a company contribution equal to $90 per month per person covered PRICE PER MONTH PER PERSON 2017 AFTER-MEDICARE MEDICAL PLANS (AFTER $90 COMPANY CONTRIBUTION) After-Medicare Medical $ Medicare Select $ After-Medicare Drug Only $ Various HMOs Price Varies by HMO 43

44 RETIREE HEALTH ACCOUNT (RHA) VEBA UPA SECTION 24-G UPA Section 24-G provides for the establishment of a Retiree Health Account and VEBA Trust. This new benefit program was created to reimburse pilots retiree medical expenses in a tax-efficient manner. The following Q&A provides information about the RHA, which is held in a voluntary employees beneficiary association (VEBA) trust. Q1: What is the RHA? A: The RHA is a retiree health account funded by employer money for the purpose of paying or reimbursing out-of-pocket health-care expenses and premiums incurred by an employee and other qualified Internal Revenue Service (IRS) dependent(s) after retirement or separation from service with the company. The RHA is intended to qualify as a health reimbursement arrangement (HRA) under the Internal Revenue Code (IRC) and, therefore, must follow IRS rules applicable to HRAs. Q2: What exactly is a VEBA? A: A VEBA is a Voluntary Employees Beneficiary Association governed by IRC Section 501(c)(9). A VEBA is a tax-advantaged trust that provides employee benefits. Q3: What are the tax objectives of this program? A: The tax objectives are to enable tax-free contributions to the plan on your behalf, to credit investment earnings tax-free, and to obtain tax-free reimbursements for your qualified medical expenses after retirement. Contributions, earnings, and withdrawals are not taxable, provided they meet certain IRS requirements. Contributions will not be included in your income statement on Form W-2 from United, and you will not receive a Form 1099 for any earnings or withdrawals. Q4: Why would I want an RHA plan? A: Health-care costs have increased each and every year for a long time, and while increases are expected to moderate, experts agree that increases will continue for the foreseeable future. The RHA provides a secure, tax-free source of funds to pay for the growing cost of health-care expenses for you, your spouse, and your qualified dependents in retirement or after separation from service with the company. Q5: How is my account funded? A: Funding is through a mandatory employer contribution of $1.00 per hour paid, which reduces the pilot s hourly rate of pay. Also, any employer contributions in excess of the IRC Section 415(c) or 401(a)(17) limits (referred to in this Q&A as the 415(c) limit or 401(a)(17) limit ) that cannot be contributed to the pilot s defined contribution plan (i.e., the PRAP) will be contributed tax-free to the RHA. Finally, forfeited monthly vacation can be contributed into the RHA or the PRAP at the pilot s choice. Q6: Can I contribute post-tax dollars to the RHA? A: No, only the funding sources listed above can fund the RHA. 44

45 Q7: Why are the $1.00 per hour contributions mandatory? A: If participation was voluntary, the IRS would view the contribution as an elective employee contribution, and the IRS does not permit elective employee contributions to be made to health reimbursement arrangements. Q8: When can I access the funds in my account? A: You will have access to your account upon retirement or separation from the company. Q9: Can retiree medical premiums be paid from my account? A: Yes. The cost of any qualified medical insurance plan may be paid or reimbursed from your account, including United After-Medicare Premiums, Medicare Part B, Medicare Part D, and any other Medicare supplement plans. Q10: What other expenses can be paid from the account? A: Long-term care premiums, dental costs, and any eligible out-of pocket health-care expenses that you might associate with a flexible spending account, such as copays and prescription drug costs, can be paid from the account. Additionally, the RHA can be used to pay other qualified medical expenses eligible for reimbursement as defined in IRC Section 213(d). IRS Publication 502 contains detailed information regarding qualified medical expenses. You can access IRS Publication 502 at Q11: How will I get money out of my account? A: Reimbursement is similar to United s flexible spending program today. Withdrawals from your account may be made only for qualified outof-pocket health-care expenses and premiums. Visit Your Benefit Resources on Flying Together (Flying Together > Employee Services > Your Benefit Resources) to understand the reimbursement process and to access reimbursement forms. Q12: What happens if I resign or retire? A: When you resign or retire, you will be able to use your account until your funds are exhausted. Q13: What happens if I die with funds remaining in my account? A: If you are survived by qualified dependents, they will be able to submit requests for medical expense reimbursements until your account is exhausted. If you have no surviving qualified dependents, your account balance will be forfeited and allocated to other plan participants on a per capita basis. Q14: Who qualifies as an eligible dependent? A: Eligible dependents include your lawful spouse, children 26 years of age or younger, and disabled dependent children as defined in IRC Section 152. Q15: Can the company ever access the funds in my account? How about in bankruptcy? A: No, that is one of the benefits of a VEBA trust. The trust funds can only be used to pay employee benefits and cannot be accessed by the company (or creditors) once contributed, even if the company files for bankruptcy. 45

46 Q16: Am I going to have too much money in my RHA account? A: It all depends on you and your eligible dependents health-care needs in retirement. If a pilot only contributes the minimum $1.00 per hour paid, has a 30-year career, and earns 7% per year, he will end up with approximately $100,000 in his RHA. Today, the average pilot and spouse will spend approximately $7,500 per year in Medicare and Medicare supplement premiums alone. If these premiums were to inflate at 4% per year for 30 years, the RHA will last less than five years for the pilot in this example, assuming no other eligible expenses are paid from the RHA. Q17: I ve heard I can put forfeited vacation into my RHA, is that possible? A: Yes, it is possible to direct your vacation forfeiture directly to your RHA. At the end of each calendar year the company will give you the option to make this election. The election is made in the calendar year prior to the beginning of the vacation year. For example, an election made in December 2017 to have the vacation forfeiture to directly into the RHA is applied to the vacation year. This forfeiture is processed on or before June 16, Q18: What is my RHA account invested in? A: The Investment Committee of the Pilot Retiree Health Account Plan VEBA Trust ( RHA VEBA ) has decided to utilize the Vanguard Target Retirement Funds for the investment of pilots RHA VEBA assets. Following a thorough review, the Investment Committee, in conjunction with its investment consultant Aon Hewitt Investment Consultants, selected the Vanguard Target Retirement Funds due to their low fees, broad diversification, and asset allocation management. The Vanguard Target Retirement Funds are lifecycle funds that automatically become more conservative over time as they approach the target year in the fund name. Vanguard developed the funds to serve as vehicles for investors retirement savings. As an example, the Vanguard Target Retirement 2030 Fund is designed for an investor that is about 48 years old and planning to retire close to the year Because an investor s time horizon at retirement is 20 years or more, the Vanguard Target Retirement Funds have a sizable equity allocation of 50% at age 65. Pilots in the RHA VEBA will be placed in the Vanguard Target Retirement Fund that is 10 years further along the glide path than what Vanguard would typically recommend. For example, a 48 year old pilot will have his or her balance invested in the Vanguard Target Retirement 2020 Fund instead of the Vanguard Target Retirement 2030 Fund. As a result, pilots will have a more conservative asset allocation than if they were placed in the fund typically recommended by Vanguard. The Investment Committee made the decision to adjust the fund placement by 10 years due to the shorter time horizon and different usage of VEBA assets compared to a typical retirement savings vehicle. Q19: Is the account and money in my name, or is the money pooled with all the other pilots? A: Pilots money will be pooled into one aggregate trust account, but the recordkeeping system accounts for each pilot s balance and any investment results. Q20: How do we know our balance and rate of return? A: An annual statement will be sent to each participant. Pilots can also view their RHA account details through the Your Benefit Resources page. Q21: Does the Investment Committee control all investment decisions, or do we have control on how the money is invested as in our PRAP? A: Pilots will not be able to direct investments. The Investment Committee will determine how the money is invested. 46

47 Q22: Is there a limit on how much can be in the account? A: There is no limit on RHA contributions, but only certain types of contributions can be made to the RHA. See questions 5 and 17 above. Q23: If the RHA is funded by the company, why does it appear that I am funding it? A: Funding is through a mandatory employer contribution of $1.00 per hour paid, which reduces the pilot s hourly rate of pay. The reason for this is because the contributions must be employer contributions in order to receive the tax-free status. Q24: I m going to get a military retirement, so I may use the military health system. Is there any way I can opt out of the United RHA program? A: You may not opt out of the RHA. All pilots must participate to preserve the tax-favored status of the RHA. If you decide to decline United Retiree Medical and use your Tricare coverage, you can still use your RHA monies for qualified medical expenses, such as monthly premiums, copays, deductibles, non-covered expenses, Medicare Part B premiums, dental expenses, or long-term care premiums. Q25. What are the IRC limits that apply to the PRAP that affect the RHA contributions? A: The first limit is the IRC Section 415(c) defined contribution plan limit, which is the maximum total contributions (employer and employee) that can be contributed to a defined contribution plan in a calendar year. For 2017, that limit is $54,000. Pilots who will be age 50 or older in 2017 can contribute another $6,000 of catch up contributions for a total of $60,000. (The IRS allows an additional employee contribution, called a catch up contribution for individuals age 50 and older.) Any employer contributions above this limit will spill into the RHA. The second limit is contained in IRC Section 401(a)(17) and is known as the qualified plan compensation limit. This rule limits the maximum annual compensation on which employer contributions can be calculated for qualified retirement plans. In 2017, the limit is set at $270,000. Therefore, 16% (the percentage United contributes to your PRAP under the UPA) of any income above $270,000 will also be contributed to the RHA. In the example in the chart after Q26, only 16% of $270,000 or $43,200 can potentially go into the PRAP. The difference of $7,507 ($50,707 $43,200) spills into the RHA. The 2017 limits mean that the pilot in the example will receive RHA contributions due to the 401(a)(17) limit of $7,507. He will also receive an additional RHA contribution of $1,140 (i.e., $1 for each hour worked in the year). Please note that both the 415(c) and 401(a)(17) limits are updated annually by the IRS. Q26: How do I maximize or minimize contributions to the RHA? A: The RHA was established so that each pilot gets RHA contributions of $1 per hour and any employer contributions that cannot legally be deposited into the PRAP. It is designed to permit pilots to optimize their tax-advantaged retirement savings by layering on top of the maximum legally permissible employer and employee contributions to the PRAP a vehicle for providing a tax-free source of funds to pay medical expenses in retirement. The extent to which an individual pilot wants to make use of the RHA vehicle is a question to be resolved by the pilot and his financial advisor. ALPA cannot give individual tax or financial advice. That said, we offer two observations that may assist pilots in making their decisions: (a) on the one hand, amounts accumulate in the PRAP on a tax-deferred basis may be withdrawn at or after retirement for any reason, and pass without restriction at death to the pilot s beneficiary or estate, but are subject to tax when distributed; (b) on the other hand, amounts accumulate in the RHA on a tax-free basis may be withdrawn at or after retirement only for purposes of paying or reimbursing qualified medical expenses and may be transmitted at death only to the pilot s spouse or other qualified dependents, but are not subject to tax when distributed. 47

48 The pilot can control the level of RHA contributions based on his anticipated uninsured medical expenses in retirement between an absolute minimum and an absolute maximum based on his pay and the IRS 401(a)(17) limit. The minimum is determined by the $1 per hour contribution mandated by the UPA plus the spill from the PRAP resulting from the 401(a)(17) limit based on the pilot s compensation. The maximum is determined by adding to that minimum the maximum spill possible from operation of the 415(c) limit. Within that minimum/maximum range, the pilot has the ability to calibrate his RHA contributions by increasing or decreasing his pretax, Roth 401(k), and post-tax contributions to the PRAP and by accelerating or decelerating the timing of those contributions. Tables 1 and 2 and the text below illustrate how a pilot can maximize or minimize RHA contributions made on his behalf. The illustrations given are both for a pilot who is (i) over age 50 (and therefore eligible to make catch up contributions), (ii) earning $278/hour in 2017, and (iii) paid for 95 hours/month for all 12 months of the year (1140 hours total), resulting in monthly earnings of $26,410 and annual earnings of $316,920. Remember that the 401(a)(17) limit for 2017 is $270,000, and the 415(c) limit for 2017 is $54,000 (not counting the $6,000 permissible catch up contributions). CONTRIBUTION SOURCE CONTRIBUTION AMOUNT Pilot Pretax and/or Roth $ 18,000 $ 18,000 Pilot Catch Up $ 6,000 $ 6,000 Table 1: Maximized 2017 RHA Contributions ALLOCATED TO ALLOCATED TO PRAP RHA ($1/HOUR) SPILL TO RHA 401(A)(17) SPILL TO RHA 415(C) TOTAL RHA Employer 16% DC $ 50,707 $ 36,000 $ 7,507 $ 7,200 $ 14,707 Employer $1/Hour $ 1,140 $ 1,140 $ 1,140 Total Retirement Savings by Source $ 75,847 $ 60,000 $ 1,140 $ 7,507 $ 7,200 $ 15,847 Assumptions: Pilot age 50+ Pilot 2017 earnings: $278/hr. x 95 hrs/mo. x 12 mos. = $316,920 (1,140 hrs.) Pilot front-loads all pretax and/or Roth contributions to IRC 402(g) maximum ($18,000) Pilot does not make post-tax contributions (see, Q&A 29 for effect of post-tax contributions) (a)(17) limit: $270, employee elective deferral (pretax and Roth) limit: $18, (c) limit: $54,000 (excluding Catch Up) 2017 Catch Up Contribution Limit: $6,000 If you desire to facilitate more contributions to your RHA, you must maximize your employee pretax deferrals, Roth contributions, and/or post-tax contributions early in the year, to allow the employer contributions to spill into the RHA later in the year. In 2017, the employee elective contribution (pretax and Roth) limit is $18,000 (or $24,000 for any pilot who is 50 or older). 48

49 In the example in Table 1, the pilot will attempt to have $43,200 going into the PRAP from the 16% employer contribution after taking into account the 401(a)(17) limit. This pilot also maximizes his pretax employee contributions early in the year. By maximizing his pretax or Roth contributions, the pilot has caused his contributions to the PRAP to exceed the 415(c) limit of $54,000 by $7,200 and this $7,200 will spill over to the RHA. Table 2: Minimized 2017 RHA Contributions CONTRIBUTION SOURCE CONTRIBUTION AMOUNT ALLOCATED TO PRAP ALLOCATED TO RHA ($1/HOUR) SPILL TO RHA 401(A)(17) SPILL TO RHA 415(C) TOTAL RHA Pilot Pretax and/or Roth $ 10,800 $ 10,800 Pilot Catch Up $ 6,000 $ 6,000 Employer 16% DC $ 50,707 $ 43,200 $ 7,507 $ 7,507 Employer $1/Hour $ 1,140 $ 1,140 $ 1,140 Total Retirement Savings by Source $ 68,647 $ 60,000 $ 1,140 $ 7,507 $ 0 $ 8,647 Assumptions: Same as Table 1, except pilot reduces pretax and Roth contributions based on projected employer 16% contribution to avoid any 415(c) excess. If you wish to minimize contributions to the RHA, you will need to minimize your employee elective pretax or Roth contributions, catch up contributions, and post-tax contributions to your PRAP to ensure that both your employee and employer contributions do not exceed the annual IRC Section 415(c) contribution limit. In the example above, if the pilot had turned off his pretax or Roth election at $16,800 ($10,800 plus $6,000 catch-up), the total contributions (employee and employer) would be $60,000, and as a result, no contributions would be made to the RHA from the application of the IRC Section 415(c) limit. Pilots control their pretax, Roth, and post-tax contributions. To minimize contributions to the RHA, pilots need to determine how much they need to contribute to hit the IRC Section 415(c) limit but not exceed it. The following formula demonstrates how to contribute just enough pilot contributions to maximize PRAP contributions for 2017 but not exceed the IRC Section 415(c) limit: Pilot contributions = $54,000 (wages x 16%) (vacation forfeiture days x 3.25 x hourly rate). If the pilot s wages are greater than $270,000, use $270,000 in the formula for wages. If the pilot contributions amount is negative, use zero as the amount. Pilots 50 or older in 2017 can add an extra $6,000 to the pilot contributions amount; if you are 50 or older the pilot contributions will always be at least $6,

50 Q27. If I make post-tax contributions to my PRAP account how does that affect RHA contributions? A. Pilots should carefully think about making post-tax contributions to the PRAP, as this may cause a substantial amount of employer contributions to spill to the RHA. For example, Pilot Smith is expected to make $240,000 in the coming year, which is $20,000 of monthly taxable pay and $3,200 of monthly employer contributions into his PRAP account. Smith decides to max out his pretax or Roth contributions and post-tax contributions as much as possible early in the year. So much so that the pilot hits the 415(c) limit by the end of March (16% = $9,600; $18,000 into pretax contributions and $25,400 of post-tax). When the pilot hits the 415(c) limit, the remaining 16% employer contributions for the year will be contributed to the RHA. In this example, Smith will receive $3,200 in RHA contributions each month for the remaining nine months of the year, or a total annual amount spilled into the RHA of $28,800. Q28. I am going to forfeit 21 days of vacation into the PRAP account; how does this affect RHA contributions? A. If a pilot in the vacation bidding year (May 1, 2016 April 30, 2017) decides to forfeit vacation, the value of the forfeited vacation will be contributed to the PRAP in June Depending on the pilot s hourly rate, this vacation forfeiture plus the 16% employer contribution on the pilot s wages could force the pilot over the 415(c) limit without any pretax or Roth contributions. For example, the pilot is making $262.38/hour on April 30, 2017, and forfeits 21 days. Forfeited vacation equals ~$18,000 ($ x 21 x 3.25). 16% on the forfeited vacation amount equals ~ $3,000. If the pilot earns $255,000 during the year, that equates to $40,800 in 16% DC contributions ($255,000 x 16%). Adding the $18,000 forfeited vacation and the $40,800 equals $58,800. This pilot is entitled to $58,800 in retirement contributions, but the law only allows $54,000 (for 2017) due to the 415(c) limit. This means that $4,800 will spill to the RHA ($58,800 - $54,000) before any pretax or Roth contributions are made for the year. If this pilot decided to max out his pretax or Roth early in that year, the amount that spills to the RHA would be the $4,800 plus all excess DC contributions once the total contribution limit to the PRAP reached $54,000. If you are going to forfeit vacation, realize that you might reach the annual 415(c) limit without any pretax or Roth contributions. Contributing pretax or Roth contributions to your PRAP in this instance will only have the effect of increasing DC contributions to the RHA. If the pilot, age 50 or older in 2017, has had $54,000 contributed to the PRAP from forfeited vacation and 16% contributions, then he still may contribute an additional $6,000 in catch up contributions for the year to the PRAP, and these contributions will stay in the PRAP. Q29. Is there an RHA calculator that can tell me how much RHA spillage I will have and ways to increase or decrease the RHA spillage? A. Yes, the R&I Committee has developed a calculator that can help you understand how much RHA spillage you should anticipate. The calculator is posted on the R&I section of the UAL MEC website. 50

51 SICK LEAVE UPA SECTION 13 AND CALIFORNIA SICK ACCRUAL Pilots accrue 5 hours of sick leave each bid period, up to a maximum of 1,300 hours. If a pilot incurs a single illness that requires more than 255 hours of sick leave, he will accrue sick leave at the rate of 7 hours per bid month until equal to the amount he used as a result of the single sickness. RESTORATION With Company approval, a reserve in his first year of active service can restore sick leave during the bid period in which sick leave absence occurred by trading a reserve day off for each specific work day missed due to sick leave. With Company concurrence, a lineholder may pick up a trip that begins on the second or subsequent day of a sick-leave absence. The pay value of the trip shall restore the sick leave used on an hour-for-hour basis. Any additional pay value will be added to the pilot s line pay value. A lineholder who so indicates can restore sick leave in the bid period in which the sick leave occurred by picking up a trip from open time on day(s) off in accordance with 20-H-2. SICK LEAVE PAY Each sick leave absence included in Monthly Schedule Preferencing shall be paid 3 hours. If a pilot misses training due to sickness, that pilot will be paid and sick leave bank debited the pay value of a training day in accordance with 3-E. A lineholder who calls in sick for a trip will have his sick leave bank debited the pay value of the trip. If line pay value > 92 hours, the pilot must bring in a doctor s note within 48 hours of returning to work, or he will be paid 92 hours with sick leave bank deducted to get to 92 hours. For each reserve day missed, sick leave bank debited 4:03. To receive sick leave pay in excess of MPG, provide a doctor s note within 48 hours of returning from sick leave; if no note, pilot paid and sick leave debited to MPG. If a pilot is granted paid sick leave for an entire bid period, he shall be entitled to be paid between 59 hours and maximum line cap of his Category for that period. A pilot must notify management in writing within one day after the end of that bid period. When a pilot is absent due to occupational injury or illness, he must request payment for occupational illness or injury leave in writing no later than the pay period following his return to service. If he receives Workers Compensation benefits and/or state disability benefits, he shall turn over such benefits to the company and shall have his sick leave bank restored to the extent that the benefits offset the sick leave pay granted for such illness or injury. The offset shall not apply to payments for a permanent disability. CALIFORNIA SICK Pilots who are based in California are eligible for CA Sick. CA Sick allows the pilot to call in sick to care for a sick dependent (parent, child, spouse, or domestic partner). Pilots can use up to half their annual amount of sick leave (for most pilots it will be 30 hours) for CA Sick. When calling in CA Sick, do not use the CCS sick form, you must call the base administrator or Crew Scheduling and inform them you are calling in CA Sick. CA Sick will be credited as sick leave as per normal sick leave credit but will be annotated on your schedule as SLK. If you call in CA Sick, the time off will not fall under the company s pilot reliability program and will not be counted against your allotted FMLA usage. 51

52 LONG TERM DISABILITY (LTD) UPA SECTION 24-H The Long Term Disability Plan (LTD) provides a disability benefit to eligible participants when they are unable to exercise the privileges of their FAA Medical Certificate. The plan is funded by company contributions totaling 65% of the actuarially projected cost and participant contributions equaling 35%. These contributions are held in a VEBA trust for the sole purpose of paying benefits to participating pilots who are disabled as defined in the LTD plan. Who is eligible? Except as provided under the Disability Transition Agreement, each active pilot was enrolled in the LTD Plan as of December 30, A pilot may opt out of participation at any time; however, it is strongly recommended that pilots do not opt out of the coverage, as readmission to the plan is not guaranteed. The only pilots who should opt out are those who have enough sick leave to carry them at full pay to retirement or those that feel that they can self-insure. How do I apply for the LTD benefit? Go to or call to apply for the LTD benefit. What is the definition of being disabled? In order for a pilot to qualify for LTD payments, the pilot must have an injury or illness that prevents the pilot from flying. Specifically, from the UPA, a Pilot is considered to be disabled under the LTD Plan if the pilot is ineligible to exercise the privileges of the Airman Medical Certificate that the Company requires to operate in the pilot s bid position as the result of an injury or medical condition, including natural deterioration, and provided that the date of disability determined in accordance with the terms of the LTD Plan occurs on or after the effective date of the Agreement. When will LTD benefits commence? LTD benefits for non-occupational injuries (except for drug, alcohol, or substance abuse, see below for this situation) shall commence at the first day of the later of: day period beginning on the pilot s disability date determined under the LTD Plan; 2. Exhaustion of the pilot s sick leave to 120 hours; or 3. At the pilot s option, the exhaustion of any additional period of sick leave below 120 hours. The earliest pilots will receive disability benefits for non-occupational injuries is 90 days. This period can be significantly longer if the pilot has a substantial sick leave bank. If a pilot has no sick leave, the pilot can use assigned and accrued vacation to cover the waiting period. If the pilot does not have sufficient sick/vacation leave to cover the 90-day waiting period, then the pilot will have no income for the balance of the 90-day waiting period. If a pilot decides to reserve hours of sick leave in his/her sick leave bank and does not return to flying, the hours of sick leave will be forfeited. LTD benefits associated with occupational injuries shall commence on the 60-day period beginning on the pilot s disability date determined under the LTD Plan or, at the pilot s option, the exhaustion of any additional period of sick leave. 52

53 Contributions How much does it cost? Company and pilot contributions are determined annually by an agreed upon actuarial process. Pilots pay 35% and the company pays 65% of the cost of the LTD Plan. For 2017, a pilot s monthly premium is equal to 1.081% multiplied by 85.5 hours multiplied by the pilot s hourly rate (pilot s hourly rate not to exceed $187.13). All contributions are made post-tax; therefore, the company s contributions are treated as income to the pilot, and reflected as Imputed Income LTD on the pilot s paycheck. The 2017 company contributions made on behalf of the pilot is approximately 2.009% multiplied by 85.5 multiplied by the pilot s hourly rate (pilot s hourly rate not to exceed $187.13). By making the pilot s contribution post-tax and the company s contribution imputed income, the benefit can be received tax-free. If the pilot is on a blended rate fleet, the hourly rate used is the blended rate. How much is the benefit? The monthly benefit is equal to (85.5 x 50%) multiplied by your blended hourly rate (the benefit is capped at $8,000 per month). OFFSETS TO MONTHLY BENEFIT The benefit shall be offset (reduced) by any payment received by the pilot for Social Security disability insurance (excluding family benefits), disability benefits under state (or similar government entity) law, any other compensation received from the company, and any payment received from the CARP or the CPRP; provided, however, there shall be no offset for vacation pay received from the company, for a benefit paid by the Pension Benefit Guaranty Corporation, or for a Workers Compensation benefit. The offset attributable to any payment under federal or state (or similar government entity) law that is subject to taxation shall be reduced by the amount of such taxation. TERMINATION OF BENEFIT Benefits shall continue until the earliest of the following events: The pilot no longer satisfies the requirements for receipt of benefits as determined in accordance with the LTD Plan. The pilot is furloughed (but benefits shall be reinstated upon the pilot s return from furlough if the pilot is still disabled). Resignation or discharge for cause of the pilot s employment. The pilot attains the government-established mandatory retirement age. The participant dies. COGNITIVE OR PSYCHOLOGICAL DISORDERS In the case of a pilot receiving benefits for a cognitive or psychological disorder, the pilot shall continue to receive LTD benefits until the date determined under UPA Section 24-H-11, Termination of Benefit (see above). The LTD Administrative Committee shall require that the pilot have his condition reviewed by an independent medical examiner or independent psychological examiner no less frequently than every 24 months, unless otherwise determined by the LTD Administrative Committee. DRUG, ALCOHOL, SUBSTANCE ABUSE TREATMENT BENEFIT In the case of a pilot who participates in the company s HIMS/EAP treatment program for drug, alcohol, or substance abuse, the pilot shall be eligible for a lifetime drug, alcohol and substance abuse benefit of 12 months of disability benefits (determined in accordance with the LTD Plan but administered by the company s HIMS/EAP) while in active treatment and recovery. 53

54 If the pilot is a participant in the LTD Plan, the benefit shall be paid under the LTD Plan and shall not limit benefits payable for other disabilities under the LTD Plan. If the pilot is not a participant in the LTD Plan, the benefit shall be paid by the company and grossed up for taxes. The drug, alcohol, and substance abuse benefit shall not be subject to any waiting period. OTHER BENEFITS WHILE RECEIVING LTD BENEFITS A pilot receiving LTD benefits shall participate in the pilot medical (including prescription drug), dental, vision, life, and accident plans with the same benefits and with same cost sharing offered to pilots in active service. LTD benefits are not considered eligible earnings under the PRAP (no employer 16% contributions are made with LTD Benefits and no 401(k) contributions can be made using LTD benefits). However, vacation that is paid to a pilot in the waiting period or while on LTD is deferrable as an employee contribution into the PRAP and counts as income used to calculate the company s 16% contribution to the PRAP, on the same basis as an active pilot. A pilot receiving LTD benefits may participate in company pass travel programs on the same basis as an active pilot. If a pilot is determined to be permanently disabled, as determined by the LTD Administrative Committee, the premium for GVUL shall be waived by the insurance carrier; provided, however, that the company shall provide a reimbursement of the required premium if the insurance carrier cannot or shall not accommodate such a premium waiver. Can ALPA help pilots regain their medical certificate? Yes, the R&I Committee strongly recommends all pilots going on LTD to contact ALPA Aeromedical at to discuss your situation with an AME. REGAINED MEDICAL CERTIFICATE A pilot receiving LTD benefits must notify The Reed Group at or call within 3 business days of regaining the required medical certification. A pilot shall continue to receive LTD benefits until the earlier of the date the pilot commences training or 15 days following the date the pilot regained the required medical certification, at which time the pilot shall be placed in paid status for his bid position. Who invests the assets in the LTD VEBA Trust? The LTD Investment Committee invests the LTD VEBA Trust assets. The LTD Investment Committee is a committee comprising one pilot and two Company representatives. The Investment Policy that determines the different asset allocation will be created with the consultation of an investment advisor. ** The LTD benefits described herein apply to pilots disabled after January 1, Any pilot receiving benefits under the PDI Plan or LOL/LTD Plan immediately prior to the effective date of the agreement shall continue to receive such benefits under the terms of such plan. ** 54

55 FAMILY MEDICAL LEAVE ACT (FMLA) SECTION 12-E Family Medical Leave Act (FMLA) allows care for yourself or relatives without it being considered an assessment of a pilot s reliability. FMLA is unpaid; however, prior to taking FMLA, pilots might be able to use sick leave or vacation time, depending on their situation. 1. Our UPA meets or exceeds the Federal FMLA Statute. 2. Pilots may take FMLA for the following purposes: A. Recovery/rehabilitation from a serious health condition (one which requires in-patient or continuing treatment); B. To care for a family member with a serious health condition; C. Birth of a child; or D. Placement of a child with the pilot for adoption or foster care. 3. Family members who you may take FMLA leave to care for: A. Spouse, as recognized in the pilot s state of residence or domestic partner as defined in Section 24-A-7; B. Parent, including a biological parent or a person who raised the pilot as a child; or C. Son or daughter, including biological, adopted, foster, or stepchild, or other minor (under 18 years of age) for whom the pilot is a primary caregiver, or such person over age 18 if that person is incapable of self-care due to a physical or mental disability. 4. You may take Emergency Leave of Absence (ELA) for up to 90 days without pay (12-G) in the following situations: A. Illness (life threatening or otherwise), injury, or death of an immediate family member for purposes of an ELA include: spouse, child, mother, father, brother, sister, grandparent, grandchildren, parent-in-law, domestic partner, and wholly dependent relatives residing in the employee s home (including stepchildren and stepparents). B. Death or life-threatening illness of relatives other than the pilot s immediate family members. 5. You make take an emergency drop (20-Q-14) in the following situations: A. If a pilot s immediate family member dies or suffers a life-threatening illness or injury, the pilot shall be released with an emergency drop for up to 4 consecutive work days (may be interrupted by scheduled day(s) off) with pay for any one instance. B. A pilot shall be entitled to no more than 2 paid instances of emergency drop for each member of the pilot s immediate family during his employment with the company. C. Immediate family members for purposes of emergency drops include: spouse, child, mother, father, brother, sister, grandparent, grandchildren, parent-in-law, domestic partner, and wholly dependent relatives residing in the employee s home (including stepchildren and stepparents). 6. FMLA In General A. Pilots shall be entitled to a maximum of 90 days of FMLA in any rolling 12-month period. A rolling 12-month period is determined by counting backwards 12 full months from the first day of any FMLA. B. Pilots can request FMLA for a period of 12 months, after which they have to reapply. 55

56 C. A pilot shall be afforded 15 days from receipt of a FMLA request to provide the necessary documentation. Note: If management finds the initial documentation incomplete, they may request additional information. You will have another 15 days to resubmit the paperwork. D. Management may require sufficient medical documentation prior to granting FMLA in cases where leave is based on the pilot s or his family member s serious health condition. They may also request periodic evidence of continuing eligibility, but no more frequently than once every 2 months. Note: CA-based pilots and residents only have to disclose the following statement such as mother suffers from a serious health condition. E. A pilot must provide advance notice when practicable. Thirty-days advance notice is required for leaves that are reasonably foreseeable, such as the birth of a child or planned medical treatment. F. If a pilot is working a trip and it becomes necessary for him to return home to begin the planned FMLA leave for the birth or adoption of a child, he shall be provided NRPS travel to his home. G. FMLA shall not be canceled without pilot concurrence. H. It is highly recommended that pilots contact the ALPA Aeromedical service, prior to applying for FMLA for their own illness. 7. Applying for FMLA A. Pilots must call the Employee Service Center at to initiate the FMLA paperwork, which has to be returned within 15 days. The pilot will be issued a case number that can be used right away. If the paperwork is sent back incomplete, you will have another 15 days to complete it. You should be notified of your FMLA status by your UAL company . You should provide your case number for every FMLA drop. 8. FMLA tracking A. For purposes of tracking FMLA usage, 90-day maximum entitlement shall be converted to a 250-hour FMLA bank based on hours per bid period. B. For purposes of tracking intermittent leave, a pilot shall be charged the actual time missed or 4:09 for each day or portion of a day missed, whichever is less. C. For purposes of tracking non-intermittent leave, each day used shall reduce the available bank by 2: MPLA (Maternity & Paternity Leave of Absence) (12-F)* A. When her medical condition requires, a pregnant pilot shall be entitled to an MPLA of up to the greater of 90 days or the length of time medically required; such leave to be inclusive of any FMLA entitlement pursuant to Section 12-E. At the conclusion of this MPLA, she may extend her leave by as much as 9 months. In addition, she may take her leaves (one of which may be for reasons not related to her medical condition; e.g., visiting grandparents) in nonconsecutive blocks, as long as they are completed within 1 year of the birth. B. A pilot who does not fall under Section 12-F-1 shall be entitled to a MPLA of up to 90 days, inclusive of any FMLA entitlement, pursuant to Section 12-E in conjunction with the birth or adoption of a child. At the time he/she takes his/her leave, the pilot may extend his/her leave by as much as 9 months, but such leave must be taken as a single block of time and must be completed within 1 year of the birth or placement. Note the requirement to take this leave (such as paternity leave) as a single block of time. C. Benefits while on MPLA are listed in the table UPA: 12-J. *Includes Adoption Leave, check Working Together Guidelines for program detail including Financial and Travel Assistance. 56

57 10. FMLA is unpaid, except (12-E-9-c) & (LOA 31) A. A pilot suffering from a serious health condition, a pregnant pilot, or a pilot giving birth may use paid sick leave prior to using FMLA (12-E-9-c-(1)); B. A pilot has the option of having their sick bank debited between 59 hours and maximum line construction cap. If a pilot prefers to use this provision, they must notify the Company in writing within 1 day after the end of the bid period in which they were granted the full-bid-period sick leave with pay (13-A-4). C. If a line holder drops an assignment without pay, his PTC (protected time credit) shall decrease by the pay value of the assignment dropped (3-C-2-e). If a line holder drops an assignment with pay (i.e., vacation drop), his PTC is unaffected (3-C-2-f). D. Prior to beginning FMLA, a pilot may use vacation that was accrued for use in the next vacation year as defined in 11-G-1 (LOA 31: 12-E-9-c-(2)); E. The use of vacation prior to FMLA should be pre-loaded prior to monthly schedule preferencing whenever possible and, when preloaded, shall pay and credit in accordance with Section 11-C. Credit: 3.25 hours/day and debited: 1 vacation day/fmla day (LOA 31: 12-E-9-c-(2)). F. Pay for any necessary trip or reserve day drop known after monthly schedule preferencing will be in accordance with Section 11-G-3 Vacation Trip Drop. Such vacation trip drops shall not be subject to Company discretion. (LOA 31: 12-E-9-c-(2)). G. In addition to the entitlement in Section 12-E-9-c-(2), when a pilot takes FMLA for the birth or adoption of a child, the pilot may use current year s vacation or next year s vacation to cover the absence in accordance with Section 11-G (LOA 31: 12-E-9-c-(3))*: When using current year s vacation, each vacation day shall pay 3.25 hours of add pay and be credited 3.25 hours of line credit value (LOA 31: 12-E-9-c-(3)-a). Unless otherwise selected by the pilot, the number of current year vacation days used to cover the absence will match the number of days in the trip or the number of reserve days dropped. The pilot may choose to increase the number of current year vacation days used to cover the absence, up to the full pay value of the dropped trip or 5 hours per reserve day being covered, by dividing the pay value of the drop by the value of a vacation day and rounding up to the next whole number. For example, with a vacation value of 3.25 hours per day, if a lineholder drops a two-day trip worth 10 hours, four days of vacation may be used, and the pilot will receive 13 hours of add pay for the dropped trip. Or, if a reserve pilot drops one day of reserve, two vacation days may be used, and the pilot will receive 6.5 hours of add pay for the dropped reserve day (LOA 31: 12-E-9-c-(3)-b). Following such a drop, a lineholder s MPG will be reduced 2:20 per day for the number of days in the original trip and a reserve s MPG will be reduced by 4:03:20 per day (4:13:20 per day if awarded a pure short call line) for the number of reserve days dropped. A lineholder s PTC and LPV will be reduced by the value of the trip at the time of the drop. The dropped trip or reserve days will continue to count toward a pilot s nonflying hours per 5-B-2-b-(2) or 5-B-2-c-(2) (LOA 31: 12-E-9-c-(3)-c). The pilot shall designate which vacation days from the current vacation year are used, provided such days are either unawarded or are at the beginning or end of a contiguous string of vacation days. From 44 hours prior to the time that bidding for monthly schedule preferencing closes until the completion of monthly schedule preferencing, no vacation which is scheduled in the bid period being preferenced may be used (LOA 31: 12-E-9-c-(3)-d). Note: A pilot can use next year s vacation during this time period. *Includes Adoption Leave, check Working Together Guidelines for program detail including Financial and Travel Assistance. 57

58 Example: Let s say a pilot wants to drop a trip for the birth or adoption of a child, and the 5-day trip is worth 25 hours. A pilot using this above provision can elect to get: 1) Add pay hours and get debited 5 current vacation days (5 x 3.25 = 16.25), 2) Add pay hours and get debited 6 current vacation days (6 x 3.25 = 19.50), 3) Add pay hours and get debited 7 current vacation days (7 x 3.25 = 22.75), 4) Add pay 26 hours and get debited 8 current vacation days (8 x 3.25 = 26), 5) Credit at 25 hours and get debited 7.69 future vacation days (25 / 3.25 = 7.69), or 6) Credit 0 hours and debited 0 current or next year s vacation days. 11. State FMLA A. Some states have FMLA provisions that exceed federal statute and our UPA. Check with your state for details. B. CA and NJ based pilots are eligible for paid SDI (short-term disability) and paid FMLA, as they pay into these programs (no matter where you live). 12. Specific FMLA coding (these might change in the future) A. VLF: Credited at 3.25 hours/day, debited at 1 vac /day, using current vacation (11-C). B. FMSL: Credited at full trip value, full training value, or 4:03 on reserve, debited sick leave (13-A-3). C. FMER: Credited 0, debited 0, no pay FMLA drop. D. FGC: Credited 0, debited 0, a temporary FMLA holding code. E. VLB: Credited at full trip value or 5 hours on reserve, debited per 11-G, using future vacation (LOA 31: 12-E-9-(2)). F: VMM: Credited at 3.25 hours/day,using current vacation; used only for birth/adoption. G: VAF: Credited at 3.25 hours/day, debited using 1 future vacation day; used only for pre-blocking. H: MT: Missed Trip Not FMLA code; if inquiry requested, file PDR. 58

59 FMLA Benefits BENEFIT PREGNANT BIRTH MATERNITY PATERNITY ADOPTION YOURSELF DEPENDENTS FMLA up to 90 days in a rolling 12 months (12-E-4) Yes Yes Yes Yes Yes Yes Yes Can extend FMLA up to 6 months (12-E-6-a) Yes Yes FMLA extending up to 3 more months, but requires month-to-month Company approval (12-E-6-a) MPLA up to 90 days (12-F-2) Yes Yes Yes Yes Yes MPLA extend up to 90 days or medically required, whichever is greater (12-F-1) MPLA extend leave up to 9 months, but need to complete within 1 year (12-F-1) & (12-F-2) MPLA extending up to 3 more months, but requires month-to-month Company approval (12-F-3) Intermittent leave for serious health condition for pilot or dependent (12-E-7) MPLA in a nonconsecutive block (12-F-1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes MPLA in one block (12-F-2) Yes Yes Use sick leave (12-F-4) & 12-E-9-c-(1) Yes Yes Yes Yes Use next year s vacation (LOA 31: 12-E-9-c-(2)) Yes Yes Yes Yes Yes Yes Yes Unpaid (12-E-9-c) Yes Yes Yes Yes Yes Yes Yes Current & next year s vacation (LOA 31: 12-E-9-c-(3)) Yes Yes Yes Yes Yes Preload FMLA next year s vacation days in PBS (LOA 31: 12-E-9-c-(2)) Yes Yes Yes Yes Yes Yes Yes Current vacation at 3.25 hours (LOA 31: 12-E-9-c-(3)) Yes Yes Yes Yes Yes NRPS pass home while working (12-E-9-f ) Yes Yes 59

60 PREGNANCY & MATERNITY LEAVE SECTIONS 12-E&F, 24-H* GENERAL NOTIFICATION When a pilot learns she is pregnant, she must provide her CPO with written notification of the pregnancy from her physician and a confirmation that she is capable of performing her duties (FOM Maternity Policy: Company Notification ). FLIGHT DUTY The FAA has no limit on flying while pregnant. ALPA Aeromedical recommends to stop flying in week 26 or 27. Beginning with the 28th week of pregnancy, written certification must be provided from a physician every 2 weeks. No pregnant pilot is permitted to perform flight duties beginning with the 32nd week of her pregnancy. BENEFITS Throughout the period of a pilot s pregnancy (when not on active flying status) until a pilot returns to active flight status, she is eligible to use accrued sick leave benefits in accordance with the UPA. Pregnancy is entitled to the same terms and conditions applicable to any illness or disability, including, for example, with respect to retention and accrual of seniority, pay longevity, sick leave, vacation, pension, bidding, passes, insurance, recall from furlough, and eligibility for employment in other positions in the company (FOM Maternity Policy: ). MATERNITY LEAVE (MPLA) (SECTION 12-F) When her medical condition requires, a pregnant pilot shall be entitled to an MPLA of up to the greater of ninety (90) days or the length of time medically required, such leave to be inclusive of any FMLA entitlement pursuant to Section 12-E. At the conclusion of this MPLA, she may extend her leave by as much as 9 months. In addition, she may take her leaves (one of which may be for reasons not related to her medical condition; e.g., visiting grandparents) in nonconsecutive blocks, as long as they are completed within 1 year of the birth. The MPLA may thereafter be extended for an additional 3 months on a month-to-month basis with management approval. A pilot who is pregnant may elect to exhaust paid sick leave prior to using MPLA entitlements. A pilot may elect to exhaust unused vacation remaining available in the current year prior to using MPLA entitlements; does not apply after birth. STATE BENEFITS Pregnant pilots may be able to take advantage of the state s FMLA provisions (refer to the FMLA section). LTD (LONG TERM DISABILITY) (SECTION 24-H) A pregnant pilot might qualify for LTD, if she becomes pregnant after working as a pilot for United Airlines. Typical pregnancy claims close at 6 weeks post-delivery for a normal vaginal delivery and 8 weeks post-delivery for a caesarean section. A pilot might also be eligible for further benefit, if any other medical issues arise (for example, post-partum depression, etc.). Reference the LTD section for more details on LTD. *Includes Adoption Leave, check Working Together Guidelines for program detail including Financial and Travel Assistance. 60

61 EXTENSION OF LEAVE AND RETURN TO WORK A pregnant pilot must be available to return to active flight status within 90 days following the termination of the pregnancy, unless she is unable to return for reasons due to her health or the health of her newborn child, in which case UPA provisions pertaining to medical leaves apply. Whenever a pilot is granted an extension to her medical leave due to the health of her newborn child, management reserves the right to request periodic independent medical evaluation to determine that the child s health reasonably requires the presence of the mother (FOM Maternity Leave: ). A pilot may remain on medical leave of absence for up to 72 months. She shall only continue to accrue longevity for the first 36 months of continuous medical leave of absence (Section 12-B-1). Any request to defer return to active status beyond 90 days following the termination of pregnancy for reasons unrelated to the health of the pilot or her newborn child shall be handled in accordance with the personal leave of absence provisions of the UPA and the FMLA (Family Medical Leave Act) guidelines. A pilot may be granted a personal leave of absence up to a maximum of 5 years for any reason deemed adequate by the Company (Section 12-A-1). Unless a pilot is receiving LTD benefits, United Medical Clearance is required to return to active flight status if an illness or injury has prevented a pilot from working for more than 30 consecutive days (FOM Medical Clearance: ). When you plan to return to work, you must fax your absence certificate, first class medical, special issuance authorization, demonstrated ability, and other pertinent documents to United Medical, , a minimum of two full business days prior to the planned return to work day (FOM Return to Work Clearance: ). Example: A pregnant pilot continues to fly until the start of week 26 and plans on returning to flying when the baby is 3 months old (12 weeks). She plans on taking FMLA for 90 days and also plans on MPLA leave for 9 months. To receive LTD benefits, the pilot must apply and complete the 90-day waiting period. During this period, at a minimum, all sick leave greater than 120 hours must be utilized. With a normal pregnancy, LTD usually continues for 6 weeks after delivery. She might be eligible for additional LTD, if complications develop, or a C-section is performed. This might only provide a week or so of LTD. However, after applying for LTD, she does not have to pay LTD premiums, so pregnant pilots should consider applying for LTD when they stop flying for medical reasons. The pilot elects to take sick leave at start of week 30, until 1 month after the birth at 75 monthly sick hours (about 260 hours). Therefore she is eligible for rapid accrual (255 hours minimum), per 13-A-1-a. Using her FMLA, and LOA 31, she uses a combination of pre-blocking borrowed (future) vacation (3.25 credit hours per day), borrowed (future) vacation (full trip value or 5 hours if on reserve), and current vacation on month 2 after birth. She bids as follows (71.25 hours credit): One: 15-hour, 3-day trip Two: 20-hour, 4-day trips Five: pre-blocked future vacation (3.25 x 5 = credit) 61

62 She moves 9 days out of 14 days of her current vacation up from later in the year, to cover the 15-hour, 3-day trip and one 20-hour, 4-day trip drop. She elects to get paid 3x3.25=9.75 hours of add pay, debited 3 current vacation days. She elects to get paid 6x3.25=19.50 hours of add pay, debited 6 current vacation days. Total of hours of add pay and debited 9 current vacation days. Lastly, she uses borrowed (future) vacation to drop the 20-hour, 4-day trip at full pay value and debit 20/3.25=6.15 vacation days. She repeats this for month 3 after the birth. She elects to return to flying status on month 4. However, during month 5 she wants to visit her parents (Baby Bonding). 62

63 WORKERS COMPENSATION UPA SECTION 15, 3-E-3 & MOU 1 If you are injured while on duty (including layover), you are eligible for Workers Compensation benefits. Under applicable state law, Workers Compensation will pay your bills attributable to the incident, compensate you (at a reduced rate) for the time you are out of work, and compensate you for any permanent injury you suffer. Under the UPA, state law Workers Compensation benefits are integrated with your UPA sick leave entitlement in order to minimize reduction in pilots pay resulting from on-the-job injury (OJI). What is the process to follow if I am injured on the job? Immediately report any OJI, regardless of severity or location, to the UAL Reporting Line at UAL-HURT and notify your CPO. It is also a good idea to put the Company on written notice of your injury. Acceptance of your claim and payment of benefits may be delayed or even denied if you do not promptly report your claim. The UAL Reporting Line will refer your case to a firm called Gallagher-Bassett. UAL, like many larger employers, self-insures for Workers Compensation, and Gallagher Bassett is the company UAL has hired to serve as its claims adjuster. You can expect to be contacted by both Gallagher- Bassett and United regarding your injury. They will request and review information and documentation regarding the incident in which you were injured and your medical diagnosis and treatment. If they agree you have suffered a compensable injury, they should see that you receive appropriate benefits. However, you always have the right to retain an attorney to assist you and to file a formal claim with the Workers Compensation agency of the particular state. You may need to consider this alternative course if they take the position your claim is not compensable, or the Company fails to provide full benefits. Another reason for consulting your own attorney is that workers compensation laws and procedures vary from state to state, the District of Columbia, and U.S. territories, and you will usually have a choice about where to file your claim. Your attorney will advise you about the best place to file and will make sure you don t miss any time limits. The company has to pay all medical bills resulting from your compensable injury. If you are out of work temporarily, you are entitled to use your sick leave, or if your sick bank is exhausted, you will receive Temporary Total Disability (TTD) benefits. When you use sick leave, the UPA provides your sick bank will be restored to the extent of the value of the TTD benefit you would otherwise receive offsets the sick benefits. In addition, to the extent your injury is permanent (e.g., if you lose an eye, leg, etc.) you are entitled to Permanent Partial Disability (PPD) or even Permanent Total Disability benefits (PTD). If your injury is permanent in any respect, it is strongly recommended that you should consider retaining the services of a workers compensation attorney to help you attain the benefits you are due. Management provides information on its administration of worker s compensation claims at (for sua pilots) and (for sco pilots). NB: The company websites do not tell you about your right to file a formal claim with state workers compensation agencies if Gallagher-Bassett and UAL refuse to pay your benefits voluntarily. The R&I Committee is working on a detailed set of FAQs, outlining the substance and mechanics of OJI/Workers Compensation benefits. 63

64 ACTIVE LIFE AND ACCIDENT INSURANCE UPA SECTION 24-I The company provides the following 100% company-paid life and accident insurance coverage. BASIC LIFE INSURANCE Pilot: The amount of pilot basic life insurance coverage is equal to the pilot s hourly pay rate (determined in accordance with UPA Section 3) times 1,026, but shall never be less than $100,000. The amount of a pilot s basic life insurance shall be adjusted concurrently with changes to the pilot s hourly pay rate. Spouse/Domestic Partner: The amount of spouse/domestic partner basic life insurance coverage is equal to $5,000. Child: The amount of basic child life insurance coverage is equal to $1,000 per child. Basic Life Insurance is a company provided benefit to all pilots and their families. The bullets above outline the death benefits that would be paid at the time of death. If a pilot retires, or otherwise separates from the Company, the pilot may convert the policy to an individual policy. However, the premiums for a converted policy can be quite expensive. BASIC PERSONAL ACCIDENT INSURANCE (PAI, FORMERLY AD&D) The maximum benefit payable under the basic personal accident insurance shall be $39,000. BUSINESS TRAVEL ACCIDENT INSURANCE FOR ACTIVE PILOTS The maximum benefit payable under the business travel accident insurance shall be $250,000. INVALIDATED LIFE INSURANCE The maximum benefit payable under the invalidated life insurance plan shall be $1,000,000, subject to an aggregate maximum of $5,000,000 for all covered coworkers per incident. For example, a pilot is killed during a terrorist attack, the pilot s private life insurance is ruled invalid due to the terrorist attack, then company s invalidated life insurance will pay the value of the pilot s private life insurance policy up to $1,000,000, unless there were other claims in excess of $5,000,000. In which case, the pilot s benefit would be reduced pro-rata. AMC/CRAF LIFE INSURANCE AND DISABILITY PLANS The maximum benefit payable under the AMC/CRAF life insurance plan shall be $150,000. SPECIAL HAZARD INSURANCE The maximum benefit payable under the special hazard insurance shall be $150,000, subject to an aggregate maximum of $7,000,000 per incident for all covered coworkers. PILOT VOLUNTARY GROUP VARIABLE UNIVERSAL LIFE (GVUL) Your coverage options: 1-14 times your base annual salary (in ½ salary increments) up to a total of $3,000,000. Definition of Base Annual Salary - Base Annual Salary is defined as your hourly rate times New-hire pilots can get up to $600,000 without evidence of good health. Any increases in coverage multiples after the new hire election require you to answer health questions and possibly complete a full statement of health process. 64

65 As Base Annual Salary grows, there are automatic premium increases to reflect the higher earnings. The pilot can suspend the automatic coverages increases by calling Metlife. Spouse/Civil Union/Qualified Domestic Partner options: You may choose life insurance coverage levels from $10,000 to $500,000 in $10,000 increments. You may elect coverage for your spouse/civil union/qualified domestic partner, even if you do not elect coverage for yourself. Spouses of new hire pilots can get up to $30,000 without evidence of good health. Any coverage increases after the new hire election require your spouse to answer health questions and possibly complete a full statement of health process. If both you and your spouse/civil union/qualified domestic partner are pilots for United Airlines, you may elect to be covered as a pilot or spouse/civil union/qualified domestic partner, but not both. Also, only one of you may elect coverage for your child(ren). Dependent Child(ren) options: When you elect GVUL coverage for yourself or your spouse/civil union/qualified domestic partner, you may insure your unmarried dependent children up to and including age 21. Each child can be covered for $10,000 in term life insurance coverage. One premium amount covers all eligible dependent children, regardless of the number of children. Once you have enrolled for child coverage, each future newborn is automatically covered at 14 days of age. When children reach age 22, they may convert their coverage to an individual term life insurance policy with MetLife. GVUL provides life insurance protection similar to any group term life insurance policy. The coverage selected as a salary multiple for you, or a flat dollar amount for your dependents, would be paid at the time of death. GVUL is an optional benefit and 100% of the premiums are paid by you. Premiums are typically paid through payroll deduction unless you are on a leave of absence or have retired. At any time during the year, you can elect, modify, or cancel any GVUL insurance. If you become disabled, GVUL premiums may be waived or reimbursed if you are deemed permanently disabled by the LTD Administrative Committee. The policy also has an accelerated death benefit which allows you to receive partial benefits prior to death in the case of a terminal illness. In addition to providing life insurance protection, you also have the opportunity to contribute additional after tax dollars, above your monthly cost of coverage, to a variety of investment portfolios. This is commonly referred to as the side fund and contributing to it is optional. You have the ability to invest via payroll deduction or contribute in a lump sum at any time during the year. The asset allocation of your side fund investments is up to you the portfolios include stocks, bonds and a fixed account with a guaranteed interest rate, which is currently 4.00%. Potential gains from your investments grow tax-deferred. You also have the option of taking loans and withdrawals at any time. If your total cash value (your investment contributions and gains) is less than the total cost of coverage paid and your investment contributions (cost basis) then your entire withdrawal is tax free. All death benefits (the elected insurance amount plus any side fund assets) are distributed tax free. PILOT VOLUNTARY PERSONAL ACCIDENT INSURANCE (PAI) Pilots can select up to $500,000 in coverage in $25,000 increments. Spouse can select up to $500,000 in coverage in $10,000 increments. Children can get up to $100,000 in coverage in $10,000 increments. 65

66 ALPA INSURANCE PLANS What benefits does ALPA sponsor? ALPA sponsors several types of group insurance, including: Annual Renewable Term Life Insurance $50,000 to $1,500, Year and 20-Year Level Term Life Insurance $250,000 to $1,500,000 with five underwriting categories to ensure the lowest rate consistent with member s health status. Note that life insurance coverage is limited to a combined total of $1,500,000 for all three ALPA-sponsored life insurance plans purchased by a participant covering his or her life. Accidental Death and Dismemberment (AD&D) Insurance $50,000 to $500,000. Lump-Sum Loss of License Insurance $25,000 to $150,000 payable in a lump sum after a 12-month wait. ALPA Loss of License/Plus (Loss of License insurance with an optional extended benefit) $600 to $4,800/month in own-occupation benefits for up to four years, depending on age at date of disability; under the extended plan, any-occupation benefits continue for eligible claimants. ALPA Dental for actives and/or retires. Are ALPA s insurance rates competitive? ALPA s life insurance rates compare well with other group insurance plans and have no exclusions or limitations related to recreational or occupational flying. The philosophy in establishing and monitoring ALPA s premium rates has been to provide the best price consistent with making the plan widely accessible. ALPA s life and disability insurance products are underwritten by The Guardian Life Insurance Company. How can I find more information on these products? Information is available on ALPA s website, without the use of an ALPA log-in, at In addition, ALPA s toll-free insurance line ( ALPA or ) is staffed during business hours by ALPA insurance staff to answer questions or fill requests for printed materials. The ALPA insurance staff can also be reached directly by at Insurance@alpa.org. 66

67 THE R&I COMMITTEE The R&I Committee s charter is to help pilots with their contractual benefits. We encourage all pilots to or call us with any comments, questions, or concerns. We are here to serve you, the pilot. Here are some of the functions that we do on a regular basis: Meet with management quarterly to discuss pilots claims for benefits, service issues, and any other problems with the delivery of contractual benefits. We also discuss possible changes to insurance and pension benefits. PRAP Investment Committee: Meets quarterly to review investment performance of investments offered in the PRAP. Vendor Selection and Oversight Committee (VSOC): Meets quarterly to review performance of benefit vendors and service providers. Retiree Health Account VEBA Investment Committee: Meets quarterly to review investment performance of RHA VEBA trust investments. Long Term Disability Committee: Meets monthly to review and approve pilot LTD applications. Long Term Disability Investment Committee: Meets annually to review investment performance of LTD VEBA trust investments. Various Pension Boards overseeing Retirement Plans: Meet as needed to resolve benefit issues. Benefit Board: Meets as needed to resolve benefit issues. We encourage pilots to communicate regularly with the R&I Committee so that we can understand your preferences, problems that you may have with benefits, and what changes you would like in the different benefit programs going forward. We can also help remove road blocks that you may encounter with the various vendors that administer your benefits. If you are having an issue concerning your benefits, please reach out to us for assistance. You can reach the R&I Committee at UALMECRI@alpa.org or fill out a PDR to the Retirement and Insurance Committee. You can find the PDR form on the home page of the UAL MEC website. 67

68 APPENDIX A LOCKED-IN PLAN DESIGNS CORE PPO CORE EPO CORE HDHP W/H.S.A. Locked Yes Yes Yes PLAN DESIGN In-Network Out-of-Network In-Network In-Network Out-of-Network Annual Deductibles HSA Seed Amount (pro-rated per paycheck) Annual Out-of-Pocket (OOP) Limits Cross Application Out-of- Network Deductibles and OOP to In-Network $300 single/ $600 family $2,000 single/ $4,000 family (includes medical coinsurance and deductible, but not copays) $600 single/ $1,200 family $200 single/ $400 family $2,500 single only $5,000 true family deductible $5,000 single only $10,000 true family deductible NA NA $750 single / $1500 family $4,000 single/ $8,000 family (includes medical coinsurance and deductible, but not copays) 90%/10% coinsurance, $1,500/$3,000 (includes medical coinsurance and deductible, but not copays) $3,000 single only $6,000 true family maximum (includes deductible and coinsurance) Yes NA Yes $6,000 single only $12,000 true family maximum (includes deductible and coinsurance) Office Visit PCP $25 copay $25 copay Covered at 95% after Office Visit Specialist $40 copay Covered at 60% deductible $40 copay Covered at 60% after deductible after deductible Preventative Services (comprehensive array) 100% preventative 100% preventative 100% preventative Laboratory, X-ray, and Diagnostic Testing Covered at 80% Included w/office visit Hospital/Inpatient after deductible Covered at 90% after deductible Covered at 95% after Outpatient Facilities/Surgical Covered at 90% after deductible deductible Urgent Care Center $50 copay $50 copay Emergency Room $200 copay, waived if admitted $200 copay, waived if admitted Attachment A 1

69 Locked in Plan Designs (continued) CORE PPO CORE EPO CORE HDHP W/H.S.A. Retail Generic Drugs $10 copay Mandatory Mail: Limit 3 retail fills for maintenance drugs (Workaround for lower costs Rx at Target/Costco) $10 copay Mandatory Mail: Limit 3 retail fills for maintenance drugs (Workaround for lower costs Rx at Target/Costco) Covered at 100% after deductible Retail Brand Preferred Drugs $30 copay Mandatory Mail: Limit 3 retail fills for maintenance drugs only if less expensive than retail (Workaround for lower costs Rx at Target/Costco) $30 copay Mandatory Mail: Limit 3 retail fills for maintenance drugs only if less expensive than retail (Workaround for lower costs Rx at Target/Costco) Covered at 95% after deductible Retail Brand Non-Preferred Drugs $50 copay Mandatory Mail: Limit 3 retail fills for maintenance drugs only if less expensive than retail (Workaround for lower costs Rx at Target/Costco) $50 copay Mandatory Mail: Limit 3 retail fills for maintenance drugs only if less expensive than retail (Workaround for lower costs Rx at Target/Costco) Covered at 95% after deductible Retail Drug Supply Limit 30-day supply 30-day supply 30-day supply Mail Order Generic Drugs $25 copay $25 copay Mail Order Brand Preferred Drugs Mail Order Brand Non-Preferred Mail Order Drug Supply Limit Covered at 100% after deductible (plan provides coverage for drugs that are allowed to be covered pre-deductible) $75 copay $75 copay Covered at 95% after deductible $125 copay $125 copay Covered at 95% after deductible 90-day supply 90-day supply 90-day supply Lifetime Maximum Unlimited Unlimited Unlimited Locked-in PPO on Guam would offer in-network benefits for local providers. HDHP future plan years: Company has opportunity to terminate HDHP as of end of a plan year with written notice to ALPA. Company must meet with ALPA and get agreement for any changes to the design of the HDHP (including HSA). Company must offer locked-in HDHP as long as any HDHP is offered. Attachment A 2

70 APPENDIX B COVERED EXPENSES UNDER LOCKED-IN HEALTH PLANS COVERED EXPENSES Bed and Board Hospital Services and Supplies Operating Room Intensive and Coronary Care Units Blood Lab and X-rays Physicians and other professional providers Free-Standing Surgical Facilities Anesthesia Hearing Services Short-Term Rehabilitation Services Cosmetic, Reconstructive, or Plastic Surgery Emergency Care Semiprivate room, unless a private room is medically necessary. Charges for hospital services and supplies. LOCKED-IN PLANS Operating room. Bed and board for confinement in an intensive care unit or a cardiac care unit. Blood (not donated or replaced), blood plasma, transfusions. Diagnostic radiology (imaging technologies such as x-ray, ultrasound, CT, PET, MRI) and lab tests. Physicians and other professional providers when acting within the scope of his or her license to practice for eligible services. Charges made by free-standing surgical facilities that have been approved by the plan. Oxygen, anesthesia, other gases, and their administration. Charges for auditory therapy and expenses related to a permanent hearing loss due to bodily injury, severe illness, or a congenital hearing loss, including: Hearing aide, including replacement due to wear and tear, breakage, or change in the patient s condition. Initial exam and tests. Hearing aid replacement covered 1 per ear every 3 years. Covered expenses include hearing aids and related charges, which are needed because of the normal aging process or the result of loud noises (sensorineural hearing loss). Charges for rehabilitation therapy, including speech therapy, cognitive therapy, physical therapy, and occupational therapy for purposes of therapeutic treatment. Limited to 90 combined visits/year unless more is determined to be medically necessary and preauthorized. Charges for cosmetic surgery, but only if it is: To correct congenital deformities; To correct conditions resulting from sickness or accidental injury; or Mastectomies and related reconstructive surgery, including both reconstruction of the breast on which surgery was performed, and surgery and reconstruction of the other breast to produce a symmetrical appearance. Breast prosthesis and physical complications of mastectomy, including lyphedemas are also covered. Charges for medical care and treatment provided in a hospital emergency room or an urgent care facility. Attachment B 1

71 Covered Expenses Under Locked-In Health Plans (continued) COVERED EXPENSES Ambulance Home Infusion Therapy Home Health Care Hospice/Palliative Care LOCKED-IN PLANS Charges for professional local ground ambulance service to the nearest hospital where medically necessary treatment can be provided in a life threatening or severe emergency and for medically necessary professional air ambulance transport to the nearest hospital or center/institute of excellence. Charges for home infusion therapy, excluding drugs covered under the prescription drug program. Charges for services received from a home health agency in accordance with a home health-care plan that are both of the following: Ordered by a physician; and Provided by or supervised by a registered nurse (RN, LPN or LVN) in your home. Benefits are available only when the home health agency services are provided on a part-time, intermittent schedule and when skilled care is required. Limited to 40 visits/year unless more is determined to be medically necessary and preauthorized. Pre-notification is required. Charges made in accordance with a Medicare-approved hospice care program for an employee or dependent with a terminal illness: By a hospice facility for bed and board and related services and supplies; By a hospice facility for services provided on an outpatient basis; By an eligible provider for professional services; By a hospice facility for part-time nursing care by a nurse, physical, occupational and speech therapy, medical social services under direction of a licensed physician, part-time services of a home health aide, and laboratory services; By a psychologist, social worker, family counselor, or ordained minister for family counseling, including bereavement counseling within one year after the employee s or dependent s death; or For pain relief treatment, including drugs, medicines, and medical supplies. However, covered expenses for charges made by a hospice facility do not include those billed: By a person who is a member of the employee s or dependent s family or who normally resides in the employee s or dependent s house; For any period when the employee or dependent is not under the care of a licensed physician; For services or supplies not listed in the hospice care program; for any curative or life-prolonging procedures; For services and supplies that are primarily to aid the employee or dependent in daily living; or For more than three bereavement counseling sessions. Attachment B 2

72 Covered Expenses Under Locked-In Health Plans (continued) COVERED EXPENSES Skilled Nursing/Extended Care Facility Private Duty Nursing Maternity Care Abortion Penile Implant Birthing Center Infertility Treatment Gender reassignment surgery Sterilization LOCKED-IN PLANS Charges for extended care facilities that have been approved by the plan if the confinement in the extended care facility is ordered by a licensed physician for continuing treatment of an injury or sickness or if convalescent care that includes medical supervision and skilled nursing service is required for treatment of an injury or sickness; that requires an intensity of care or a combination of skilled nursing, rehabilitation, and facility services that are less than those of a general acute hospital but greater than those available in the home setting. Benefits are available when skilled nursing and/or rehabilitation services are needed on a daily basis. Accordingly, benefits are NOT available when these services are considered intermittent care (such as physical therapy three times a week). Benefits are NOT available for custodial, maintenance, or domiciliary care (including administration of enteral feeds) that, even if it is ordered by a physician, is primarily for the purpose of meeting personal needs or maintaining a level of function, as opposed to improving that function to an extent that might allow for a more independent existence. Limited to 120 visits/year unless more is determined to be medically necessary and preauthorized. NOTE: Custodial, maintenance or domiciliary Care may be provided by persons without special skill or training. It may include, but is not limited to, help in getting in and out of bed, walking, bathing, dressing, eating, and taking medication, as well as ostomy care, hygiene or incontinence care, and checking of routine vital signs. Charges for covered health services for private duty nursing care given on an outpatient basis when provided by a licensed nurse (R.N., L.P.N., or L.V.N.). Private duty nursing includes teaching and monitoring of complex care skills such as tracheotomy suctioning, medical equipment use, and monitoring to home caregivers and is not intended to provide for long-term supportive care. Benefits for private duty nursing service will not be provided due to the lack of willing or available nonprofessional personnel. Limited to 70 visits/year (8-hour increments) unless more is determined to be medically necessary and preauthorized. Services and supplies incurred by a covered person for delivery of a child. Inpatient care for the mother and newborn child in a health-care facility for a minimum of 48 hours following an uncomplicated vaginal delivery or 96 hours following an uncomplicated delivery by cesarean section. Care includes: Parent education. Assistance and training in breast-feeding and bottle feeding. Performance of any necessary and appropriate clinical tests. Charges for abortions. Charges for penile implants. Charges made by a licensed birthing center. Charges for the treatment of infertility, but not for any artificial means of promoting fertilization (such as in vitro fertilization). Charges for gender reassignment surgery (but not for reversal of a prior transsexual surgery), including mastectomy, phalloplasty, and penile implant, but excluding mammoplasty and electrolysis. Charges for tubal ligation or vasectomy (reversals are excluded). Attachment B 3

73 Covered Expenses Under Locked-In Health Plans (continued) COVERED EXPENSES Mammograms and Well- Woman Benefits Prescription Contraceptives Detection for Prostate Cancer Detection of Colorectal Cancer Organ and Tissue Transplants Dental Services Prosthetics/Artificial Limbs Orthotics Acupuncture Pre-Admission Testing Allergy Treatment Nutritional Counseling Charges for diagnostic mammograms. LOCKED-IN PLANS Charge for exams to prescribe contraception (excludes prescription). Charges for diagnostic PSA test. Charges for diagnostic colonoscopy and sigmoidoscopy. Charges for human organ and tissue transplants performed at a center/institute of excellence designated for the transplant procedure. Lodging and meal allowance may be available for a single family member or companion to accompany the patient for procedures scheduled at a center/institute of excellence that is 50 miles or greater from the patients primary residence in accordance with the IRS rules. Charges made by a hospital, outpatient facility or physician for the medical and surgical expenses of a live donor, but only to the extent not covered by another plan or program. Surgical removal of tumors, cysts, and bony impacted teeth. Services provided to a child that are necessary treatment or correction of a congenital defect. Correction of damage caused solely by external, violent accidental injury to healthy, unrestored, or restored natural teeth and supporting tissues, but only if initial treatment is sought within 72 hours of the accidental injury. An injury sustained as a result of biting or chewing will not be considered an accidental injury. Charges for dental implants if no other form of treatment is dentally necessary when used (a) for the reconstruction of hard and soft tissue lost due to medical morbidity or trauma, (b) to stabilize obturator or a moulage, (c) in the correction of cleft lip/ cleft palate, or (d) to restore to the body of the mandible due to severe atrophy; including, when preauthorized, (i) bone grafts, hydroxyapatite applications, gortex grafting and iliac bone grafts when used to build up the alveolar ridge in preparation for implants or (ii) implants as replacements for single or multiple tooth loss. Charges for prosthetic appliances that are medically indicated and consistent with accepted medical practice and approved by the Food and Drug Administration. Charges for customized, prescribed orthotic devices for approved medical conditions only, as determined by the claims administrator, including devices placed within the shoe, and related services, supplies, repair or replacements (following normal wear and tear, malfunction or growth adjustment), but excluding OTC arch supports, elastic stockings, and orthopedic shoes unless one or both shoes are integral part of a leg brace Charges for acupuncture treatment by a licensed acupuncturist for therapeutic treatment and not for maintenance care limited to 15 visits/year unless more is determined to be medically necessary and preauthorized. Hospital charges for pre-admission tests. Charges for allergy testing and treatment. Nutritional counseling and education provided by a registered dietician for a participant with a medical condition (for example diabetes or obesity) that requires a special diet. Attachment B 4

74 Covered Expenses Under Locked-In Health Plans (continued) COVERED EXPENSES Obesity Treatment Cardiac/Pulmonary Rehabilitation Services Detection and Prevention of Osteoporosis LOCKED-IN PLANS Charges for bariatric surgery performed at a center/institution of excellence for bariatric surgery. To be considered eligible for benefit coverage of bariatric surgery to treat morbid obesity the member must be have a diagnosis of morbid obesity and submit documentation from the requesting surgical program. Contact claims administration for additional information Charges for cardiac rehabilitation exercise program may be considered medically necessary for three sessions per week up to a 12- week period (36 sessions unless more is determined to be medically necessary and preauthorized). Programs are to start within 90 days unless a longer time period is determined to be medically necessary and preauthorized following the cardiac event. Pulmonary rehabilitation outpatient program generally includes team assessment, patient training, psychosocial intervention, exercise training, and follow-up. The overall length of the program and the total number of visits for each component may vary from program to program. Charges related to the detection of osteoporosis. Chiropractic Treatment Charges for chiropractic treatment by a licensed chiropractor for therapeutic treatment and not for maintenance care limited to 30 visits/year unless more is determined to be medically necessary and preauthorized. Durable Medical Equipment Charges for rental or, at the option of the plan administrator, purchase of an oxygen breather, in-home uterine monitoring system, sleep apnea treatment devices (positive airway pressure [PAP] devices), or other durable equipment that is appropriate for home use and is used only for medical purposes. Charges for repair or replacement of durable medical equipment that could be purchased as a covered expense, but only if not required because of loss, abuse, or misuse. Children Growth Hormone Treatment Inquiry Basis Charges Radiation and Chemotherapy Treatment Wigs TMJ Disorder Sleep Disorders Charges for growth hormone treatment to correct the deficiency for children with documented growth hormone deficiency (GHD). Charges on an inquiry basis only if an eligible provider bills for a consultation and surgery on the same day or hospital visit on the same day as surgery and the state allows them to charge separately. Charges for radiation and chemotherapy treatment. If there is a hair loss due to radiation and chemotherapy treatment or for Alopecia areata with near complete or complete cranial hair loss, Alopecia totalis, Alopecia universalis, fungal infections not responsive to an appropriate (typically 6-week) course of antifungal treatment resulting in near complete or complete cranial hair loss. Wigs covered up to a $1,000 lifetime. Charges for surgery covered if appliance therapy alone cannot result in functional improvement (appliances therapy excluded). Charges for sleep disorder clinic, including sleep studies performed at such clinic, which is either part of a hospital or a free standing clinic licensed under an affiliated hospital and which has satisfied the standards and guidelines for accreditation of the American Sleep Disorders Association, and certain surgical procedures for treatment of sleep apnea. Attachment B 5

75 Covered Expenses Under Locked-In Health Plans (continued) COVERED EXPENSES Jobst Stockings Eyeglasses or Contact Lenses Following Cataract Surgery or Keratoconus Multiple Surgical Opinions BRAC Analysis Genetic Testing LOCKED-IN PLANS Charges for medical gradient compression stockings of 20 mmhg or more that are prescribed by a physician and are individually measured and fitted to the patient. Four pair per year. Charges for one pair of eyeglasses or contact lenses following cataract surgery or keratoconus. Charges for optional second surgical opinion and, if the second opinion conflicts with the surgical procedure recommended by a licensed physician, an optional third surgical opinion, provided the optional second or third opinion is obtained within six months after a licensed physician has first recommended the surgical procedure and it is not rendered by the licensed physician who performs the surgical procedure. Charges for BRAC analysis to assess a woman s hereditary risks of developing breast or ovarian cancer based on detection of mutations in the BRCA1 and BRCA2 genes. Charges for genetic testing determined medically necessary by the claim administrator based on medical policy. Attachment B 6

76 APPENDIX C EXCLUDED SERVICES UNDER LOCKED-IN HEALTH PLANS EXCLUSIONS Treatment Outside Scope of Provider s Licensure Commission of Crime Experimental or Investigational Services Services by Non-Eligible Providers Certain Medical Supplies Reduction Mammoplasty Physical Conditioning Programs Charges Relating to Acts of War Charges from Failure to Keep Scheduled Visits Certain Physical Exams Dietary/Nutritional Services or Supplies Custodial Care TMJ Treatment Teeth Treatment Cosmetic Services Wigs Hair Transplants Personal Comfort Items Myopia Orthoptics Supplies/Exams for Eyeglasses, Contacts LOCKED-IN PLANS Treatment that is outside the scope of, or inconsistent with, the provider s license to treat. Charges resulting from participation in or attempt to commit crimes that are malum in se. Experimental or investigational services unless recommended as a medically appropriate alternative by the claim administrator and approved by the plan administrator. Services by a person who is neither an eligible provider nor under the supervision of an eligible provider. Non-prescribed medical supplies. Charges for reduction mammoplasty unless medically necessary or to treat illness or accidental injury. Physical conditioning programs such as athletic training, exercise, and fitness. Illness or injury caused by war or any act of war, unless operating CRAF or Military Airlift Command or similar company flying. Any charges resulting from the failure to keep a scheduled visit with a physician or provider, completion of any insurance forms, or acquisition of medical records. Excluded services unless expressly included in covered services or in the preventive chart. Any services or supplies provided for dietary and nutritional services, except for an inpatient nutritional assessment program provided in and by a hospital and approved by the claims administrator, or for diabetic management services, including the nutritional supplement for PKU. Custodial care, maintenance care, or services or training that is educational. Appliance therapy for TMJ. Physician s services and supplies involving treatment of the teeth or gums. Any services or supplies provided for cosmetic, reconstructive, or plastic surgery services unless expressly included in covered services. Excluded services unless expressly included in covered services. Hair transplants. Personal comfort and convenience items and services. Surgical procedures to correct refractive errors, including but not limited to radial keratotomy, photorefractive keratotomy, laser-in-site keratomiteusis (LASIK) lamellar keratotomies, thermokeratoplasty, hexagonal keratotomy. Any services or supplies provided for orthoptics or visual training. Routine eye or ear examinations or the fitting or the prescription of eyeglasses or contact lenses. Attachment C 1

77 Excluded Services Under Locked-In Health Plans (continued) Special Education EXCLUSIONS Certain Dental Expenses Charges in Excess of R&C Charges Certain Occupational Therapy Services Travel Obesity Treatment Smoking Cessation Programs Chelation Therapy Reproductive Services Foot Care Non-Eligible Expenses Surface EMGs Benefits in Excess of any Specified Maximums Learning Disabilities Certain Therapy Services Services Not Legally Obliged to Pay LOCKED-IN PLANS Any services or supplies provided for special education, including lessons in sign language, to help you learn to function without the ability to speak if that ability has been lost or impaired other than testing, diagnosis, and treatment of an underlying medical condition. Dental services unless expressly included in covered services. Charges that are in excess of reasonable and customary charges. Any occupational therapy services that do not consist of traditional physical therapy modalities and are not part of an active multi-disciplinary physical rehabilitation program designed to restore lost or impaired body function. Travel, whether or not recommended by a physician or professional provider, except for local ground ambulance service or air ambulance service otherwise covered under the plan. Commercial weight loss programs. Smoking cessation programs and treatments or nicotine patches. Any services or supplies provided as, or in conjunction with, chelation therapy, except for treatment of acute metal poisoning. Any artificial means of promoting fertilization (such as in vitro fertilization), including any related services, drugs, or supplies, but not excluding expenses related to the treatment of infertility. Any procedure to reverse the effect of a tubal ligation or vasectomy. Any artificial means of preventing fertilization, except for tubal ligations, vasectomies, and prescription contraceptives for females. Any procedure to reverse the effect of a transsexual surgery. Any services or supplies for routine foot care. Any service or supply that is not medically necessary. Any services or supplies not specifically defined as eligible expenses in this plan. Charges while you are not covered under the plan. Expenses incurred by failing to pre-certify care (when precertification is required). Drugs and medications covered under the prescription benefit. Any services or supplies provided for surface EMGs. Any benefits in excess of any specified maximums. Services, treatment, educational testing, or training related to learning disabilities other than testing, diagnosis, and treatment of an underlying medical condition. Services related to primal therapy, rolfing, psychodrama, megavitamin therapy, bioenergetic therapy, vision perception training, or carbon dioxide therapy. Charges you are not legally obligated to pay. Attachment C 2

78 APPENDIX D PREVENTATIVE SERVICES UNDER LOCKED-IN MEDICAL PLANS Physical Exam Prostate-Specific Antigen (PSA) Lipid Panel Glucose Testing Colorectal Screening Complete Blood Count (CBC) PREVENTIVE EXAMS AND SCREENINGS: ADULT MALE 100%, annually 100%, annually 100%, annually 100%, annually 100%, annually 100%, annually IMMUNIZATIONS: ADULT MALE Tetanus Injections (with or without diphtheria) 100%, as often as recommended by physician Meningitis 100% Herpes Zoster 100% Influenza Vaccine 100%, annually Pneumococcal Vaccine 100% Travel Vaccinations 100%, as often as recommended by physician Measles, Mumps, Rubella (MMR) for Adults 100% Physical Exams Lipid Panel Glucose Testing Colorectal Screening Chlamydia Infection Screening Mammogram Bone Density Pap Test Complete Blood Count (CBC) PREVENTIVE EXAMS AND SCREENINGS: ADULT FEMALE 100%, one general and one well-woman exam annually 100%, annually 100%, annually 100%, annually 100%, annually 100%, annually 100%, annually 100%, annually 100%, annually Attachment D 1

79 Tetanus Injections (with or without diphtheria) IMMUNIZATIONS: ADULT FEMALE Meningitis 100% Herpes Zoster 100% Influenza Vaccine Human Papillomavirus (HPV) 100% Pneumococcal Vaccine 100% Travel Vaccinations Measles, Mumps, Rubella (MMR) for Adults 100% Office Visits; Examinations Includes: Physical and medical history Height and weight Head circumference (<1 year) Ocular prophylaxis (at birth) Hemoglobin (<1 year) Preventive health counseling, injury prevention, and education Dental health Subjective assessment of vision and hearing (0 4 years) Vision and hearing screen (4 18 years) Developmental screening (up to 4 years) Blood pressure (>1 year) Administration of immunizations as indicated below 100%, as often as recommended by physician 100%, annually 100%, as often as recommended by physician PREVENTIVE EXAMS AND SCREENINGS: CHILDREN BIRTH TO %, as often as recommended by physician up to age 2, annually as of age 2 Attachment D 2

80 Hepatitis B Series Hepatitis A Series Diptheria/Tetanus/Pertussis (DTaP) Adult Tetanus/Diphtheria (Td) Haemophilus Influenza (Hib) Series Influenza Vaccine Rotavirus Polio Series (IPV) Pneumococcal Conjugate (PCV) Measles/Mumps/Rubella (MMR) Chickenpox Vaccine (VZV) Travel Vaccinations IMMUNIZATIONS: CHILDREN BIRTH TO 18 (COVERED AS WELL-CHILD CARE) 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician 100%, as often as recommended by physician Attachment D 3

81 APPENDIX E PILOT LONG-TERM DISABILITY (LTD) CHECK LIST This checklist is a Company document that ALPA has reviewed. I need to file a LTD claim: Call The Reed Group or Notify your base of how many sick hours you would like to withhold if any. 24-H-6-a Non-occupational- exhaustion of the Pilot s sick leave to one hundred twenty (120) hours; or at the Pilot s option, the exhaustion of any additional period of sick leave. 24-H-6-b Occupational - first day after the later the sixty (60) day period beginning on the Pilot s disability at the Pilot s option, the exhaustion of any additional period of sick leave. Return disability claim information to The Reed Group. Claims will be reviewed by the LTD Plan Committee. A complete claim packet must be received before your claim is presented to the committee. The LTD Plan Committee meets the second Wednesday of every month. 24-H-6-a Non-occupational 90-day waiting period from date of disability before a claim will be paid. 24-H-6-b Occupational 60-day waiting period from date of disability before a claim will be paid. Notification will be sent to you from pilot benefits administrator/manager once your claim has been presented to the LTD Plan Committee and if approved. If denied, you will receive a letter in the mail. A personal letter with your benefits will be ed to you as well with more details. Your LTD premium will be waived once your claim is approved. Disability payments are sent at the end of the month. You can fill out a new direct deposit form, which will be ed to you with your notification of awarded benefit. State disability payments and offsets: You will receive details regarding these offsets once you claim is approved. I am RETURNING to work from LTD: In addition to notifying your base CALL The Reed Group at or The Reed Group will close the claim and notify United with a copy of your First Class Medical/Special Issuance to start the process to get you back onto active payroll. A representative from the Pilot Service Center (PSC) will call to initiate your return to work and request any additional information. You will receive a call from the PSC. You do not have to call OPCMD. 12-H-4 A Pilot receiving LTD benefits shall notify the Chief Pilot s Office within three (3) Business Days of regaining the required medical certification. A Pilot shall continue to receive LTD benefits until the earlier of: 12-H-4-a the date the Pilot commences training; or 12-H-4-b fifteen (15) days following the date the Pilot regained the required medical certification at which time the Pilot shall be placed in paid status at two and eight-tenths (2.8) hours pay per day for his bid position. Attachment E 1

82 APPENDIX F LTD HANDBOOK The Long Term Disability Plan (LTD) provides a disability benefit to eligible participants when they are unable to exercise the privileges of their FAA Medical Certificate. This document has been developed by the R&I Committee to help you understand the administrative processes involved in accessing your LTD benefits and to make you aware of some nuances within the process. Key contact information is provided at the end of the document. IF YOU BECOME DISABLED Applying for LTD Benefits Once you have decided to apply for the benefit, please call The Reed Group at or to conduct an initial interview. This will expedite the processing of your claim. We encourage you apply as soon as you as you anticipate the possible need for LTD benefits. While applying early will not change your benefit commencement date, starting the process could be a benefit as your LTD monthly premiums will no longer be required to be paid after your claim is approved. The application is located online at There are forms for the pilot to fill out as well as a form for the pilot s physician to complete. Try to obtain copies of all pertinent records relating to your illness/injury for submission to The Reed Group to support your claim. The most common delay associated with benefit approval is failure to submit a complete package of required information. Waiting Period Prior to receiving LTD benefits, you will have a waiting period as outlined below. Your disability date is determined under the LTD Plan. LTD benefits for non-occupational injuries shall commence the day after the later of: 90-day waiting period or Exhaustion of your sick leave to the elected level (you can reserve up to 120 hours). The earliest you could receive disability benefits for a non-occupational injury is 90 days (could be longer if you have a substantial sick leave bank). LTD benefits for occupational injuries shall commence the day after: The 60-day waiting period or At your option, exhaustion of your sick leave to the elected level. The earliest you could receive disability benefits for an occupational injury is 60 days (could be longer if opt to use additional sick leave). You should realize that if you have no sick leave, you can use assigned and accrued vacation to fill the waiting period. However, once sick leave and vacation are depleted and the waiting period is not met, the pilot will have no income. If a pilot decides to reserve sick leave in his sick leave bank and does not return to flying, the sick leave will be forfeited. Attachment F 1

83 Prior to making your sick leave usage election, please review Section 13-A-1-a of the UPA (Rapid Accrual) regarding how this provision may impact your sick accrual when returning to an active status. In short, the policy states: If, as a result of a single sickness, you have depleted more than 255 hours of sick leave. You are entitled to the rapid accrual provision of 13-A-1-a. This allows you to accrue sick leave at a rate of 7 hours per month (as opposed to the normal 5 hours per month) until you have the same amount of sick leave as when you started the applicable single sickness. If you don t have 255 hours in your sick bank when you begin the waiting period, you will not be eligible for rapid sick leave accrual. This is coordinated through your base Chief Pilot s Office (CPO). After returning to work and receiving your first pay invoice, make sure to verify that you are receiving 7 hours per month. If you are not, please make sure to follow-up with your CPO and UALMECRI@alpa.org. By delaying benefit commencement and burning additional sick leave it may trigger rapid accrual upon return to work. This is something to consider if you are planning to retain up to 120 hours in your sick bank. Approval of Benefits The LTD Administrative Committee typically meets the second week of each month. The LTD Administrative Committee reviews claims and makes benefit determinations based upon the LTD plan s definition of disability. The LTD plan s definition of disability is a Pilot is considered to be disabled under the LTD Plan if the Pilot is ineligible to exercise the privileges of the Airman Medical Certificate that the Company requires to operate in the Pilot s bid position as the result of an injury or medical condition, including natural deterioration, and provided that the date of disability determined in accordance with the terms of the LTD Plan occurs on or after the effective date of the Agreement. Once approved, you can anticipate receiving an approval letter via from The Reed Group, which will outline your amount of benefit and some of the plan provisions. LTD Premiums after Approval of Claim After your claim is approved, you are no longer required to pay LTD premiums. Your LTD deductions should cease, and you may be due a refund of premiums back to the date you signed your LTD application. Transition from Payroll to LTD Benefit Payments When transitioning from active status to LTD benefits, it is important to realize that active pilots are paid in arrears, so that any given paycheck received is for the previous month of flying. Attachment F 2

84 A pilot who is eligible to receive LTD benefits is paid on the last day of the month in which the benefit was accrued. For example, your LTD benefit start date is April 11, you will be paid a prorated amount equal to 20 days of LTD benefit on April 30. Thereafter, you will receive a full LTD benefit payment on the last day of each month. If you return to work, you will be paid a pro-rata amount for the days you were on LTD for that return to work month. Therefore, in the month when a pilot begins LTD benefits, he will receive an LTD benefit payment as well the last of his active pay. This produces unexpected income at the front side of the disability process and a one month gap in pay at the back end of the process. Understanding the process will help in managing cash flows upon return to work. Denial of Benefits The LTD plan does not cover any disability or continue to pay a disability benefit with respect to a with respect to a disability that is: Incurred in connection with the commission of a violent or felonious crime by the participant; Attributable to a pre-existing condition, or medical or surgical treatment of a pre-existing condition, unless the participant s coverage (aggregating coverage under prior disability plans offered by an employer) has been in effect for at least 12 consecutive months during which the participant missed fewer than 60 days of work (from an employer) for any reason relating to the disabling condition; provided, however, that a condition for which a participant received payments under this plan or another disability plan offered by an employer, but from which he has temporarily recovered, shall not be considered a pre-existing condition; Attributable to agricultural flying (crop dusting); For any period when the participant is not seen regularly and treated by a qualified health professional (to the extent reasonably so required by the LTD Administrative Committee); For any period when the participant is confined for any reason in a penal or correctional institution including a halfway house If the participant obtained his or her required medical certificate by fraud or concealment; Attributable to drug, alcohol, or substance abuse except if the pilot is receiving the drug, alcohol, substance abuse treatment benefit; In the event of a misrepresentation of any material information in the participant s application for benefits; and Following the disappearance of the participant. If a denial was rendered by the LTD Administrative Committee, the participant has the opportunity to appeal the decision within 60 days of receipt of the denial letter. WHAT TO KNOW WHILE COLLECTING LTD BENEFITS Benefit Payments The monthly LTD benefit is equal to 50% of the pilot s blended hourly rate times 85.5 hours. The benefit is capped at $8,000 per month and is not taxed. You are highly encouraged to sign up for direct deposit for timely receipt of benefit payments. You will receive one payment per month at the end of each month while receiving LTD benefits. If you receive your benefit via paper check, please make sure to advise the United Benefits personnel listed in Key Contact Info at the end of this document. Any other address update (i.e., FlyingTogether, advising CPO or Flight Office) to United will not update the LTD payment address. Attachment F 3

85 Offsets to Benefit Payments There are a few possible offsets to your LTD benefit. An offset is a reduction of your LTD benefit payment if you are receiving, or are eligible to receive, certain other payments. It is very important to understand that these offset payments are made directly to you the pilot, and it is your responsibility to ensure that The Reed Group has a record of these payments. If not, an overpayment of your LTD benefit may occur, and you must return any overpayments to the LTD trust fund. This may be headache for you, as your monthly LTD payments may be reduced by the amount of the overpayment until the full amount of the overpayment has been returned to the LTD trust. Repayment is coordinated through The Reed Group. Payment plans can be requested if a total repayment will create a financial hardship. The following list is all of the possible offsets to your LTD benefit: Federal Social Security Disability Income (SSDI) Benefits (family social security benefits are not offset): Any tax liability as a result of this benefit shall be refunded to the pilot. The Reed Group will advise you when you should apply. State Disability Income (SDI) Benefits: Any tax liability as a result of this benefit shall be refunded to the pilot. The following states/territory have SDI programs. California Hawaii New Jersey New York Puerto Rico Rhode Island Payments from CARP (Continental Airlines Retirement Plan) or CPRP (Continental Pilots Retirement Plan): Not allowed prior to retirement under the terms of those plans. Any compensation received from United (excluding vacation and profit sharing) or any of its subsidiaries. The following payments are not offset: Vacation pay. Payments from the PBGC (Pension Benefit Guaranty Corporation). Worker s compensation benefits. Any compensation received from an employer other than United or its subsidiaries. Other Benefits/Pass Travel While on LTD A pilot receiving LTD benefits shall participate in the medical, dental, vision, and life and accident plans with the same benefits and with same cost sharing offered to pilots in Active Service. The United Benefits Center will bill you directly for your benefits excluding LTD premiums. It is highly encouraged that you setup an electronic payment arrangement so that the insurance premiums are paid consistently and in a timely manner. If you participate in Group Variable Universal Life (GVUL), you will be billed directly from MetLife. Attachment F 4

86 LTD benefits are not considered eligible earnings under the Pilot s Retirement Account Plan (PRAP) (no employer 16% contributions are made based on LTD benefits, and no 401(k) contributions can be made using LTD benefits). However, vacation and sick leave that is paid to a pilot in the waiting period or while on LTD is deferrable as an employee contribution into the PRAP and receives the 16% company contributions on the same basis as an active pilot. A pilot receiving LTD benefits may participate in company pass travel programs on the same basis as an active pilot, with the exception of riding in the jumpseat. Federal Social Security Disability Benefits You may be required by the LTD Administrative Committee for United Airlines Pilot Long Term Disability Plan to apply for Social Security Disability Insurance (SSDI) once you have been disabled for more than 12 months, or if your condition meets certain criteria as determined by the LTD Administrative Committee. If you are deemed to have met the criteria, you will receive a communication from The Reed Group indicating the need to apply with appropriate instructions. If you do not apply for SSDI as instructed, you benefits may be adversely affected, i.e., your benefits may be reduced by an estimated amount of SSDI benefits that you would have received if you had applied as requested. Continued Care by Qualified Health Professionals Representatives from The Reed Group, on behalf of the LTD Administrative Committee, will periodically check with you and/or your treating physician to monitor your treatment and progress. If you choose not to comply with these information requests from The Reed Group, the payment of your benefits may denied or discontinued. Independent Medical Examination The LTD Plan provides that the LTD Administrative Committee may request that the pilot undergo an Independent Medical Examination (IME). The IME can be requested for several reasons, but it is most commonly used to ensure that the care provided to the pilot gives him the best possibility for return to work. Permanent Disability If you are deemed permanently disabled as a pilot, meaning the LTD Administrative Committee determines that you will likely not be returning to work, you are entitled to additional contractually provided benefits. If you have voluntary Group Variable Universal Life (GVUL) Insurance through MetLife, your premiums will either be waived or reimbursed. If you are permanently disabled from any occupation as defined and determined by MetLife, then your premiums will be waived by MetLife. If you do not meet the MetLife standard, but you are deemed permanently disabled as a pilot by the LTD Administrative Committee, then your premiums will be reimbursed to you by United. Additionally, if you are deemed permanently disabled as a pilot, you are able to make withdrawals from your Pilot s Retirement Account Plan (PRAP) account, though taxes and possible early withdrawal penalties might apply. Attachment F 5

87 Cognitive or Psychological Disorders If you are receiving benefits for disability related to a cognitive or psychological disorder, you shall receive benefits under the same terms as any other diagnosis. However, the LTD Administrative Committee may require that you have your condition reviewed by an independent medical examiner or independent psychological examiner every 24 months. This is to help minimize and discourage the possibility of fraudulent mental health claims made within the plan. Filing Additional Claims Your LTD benefit is claim specific. Thus, if you incur a different medical disability while on LTD or in the waiting period, you must file an additional claim with The Reed Group. The waiting period applies to the additional claim even though you are currently collecting a benefit for the previous claim. You will continue to be paid a benefit from the first claim during the waiting period for the additional claim but you can only be paid for one disability at a time. Maximum Duration of Benefits Under the United Pilot LTD plan your benefits will continue until: You are no longer disabled (i.e., you have regained your medical certificate), Furlough, however, your benefits will be reinstated if you are still disabled upon recall, Resignation or termination of employment by United, Attaining age 65, or Your death. Special Drug/Alcohol Benefit If you are a participant in the HIMS/EAP drug, alcohol, or substance abuse treatment program, you are entitled to a one-time 12-month drug/ alcohol treatment LTD benefit. There is no waiting period associated with this benefit, but benefit payments are contingent upon complying with the requirements of the HIMS/EAP program. LTD Support Group If you would like to connect with other pilots on LTD, please complete the LTD Support Group Questionnaire at the end of this document and return via to UALMECRI@alpa.org. If you need to fax the form, please call Lisa Kwilas at ALPA will then help match you with other pilots who are (or have been) on LTD who also want to connect and may be able to provide support as someone who has been through the LTD process, including the emotions and challenges that go along with being a disabled pilot. WHAT TO KNOW WHEN RETURNING TO WORK Notification You are required to notify The Reed Group within three business days of receiving your FAA Medical Certificate or clearance to return to work from your treating physician if your medical did not lapse. The Reed Group will notify the Company, and this begins the process of coding your return to work within CMS/CCS so that you are paid correctly and put into the queue for training. Attachment F 6

88 Pay You will continue to be paid from the LTD Trust for up to 15 days after regaining your medical certificate or once you ve started any required training. If you have not started training within 15 days after regaining your medical certificate, you will be paid 2.8 hours per day, every day, by the Company until training begins. It is important to remember, your LTD payments are current and your company payments are in arrears, thus your LTD payments will stop immediately and the first company paycheck will not be deposited for up to 30 days. If you have a problem with pay upon return, please make sure to complete a pay inquiry on FlyingTogether (FlyingTogether > Finance > Payroll > My Pay Inquiry). United Medical If you have received LTD benefits, you are not required to complete the United Medical Return to Work process for your LTD absence. You do not need to complete an absence certificate or discuss your medical condition with United Medical staff. Administrative Requirements Depending on the length of your absence, you may need to obtain a new company ID, drug testing, fingerprints, background checks, etc., upon returning to active service. Your base Chief Pilot s Office or Flight Office can assist you with these formalities. Training After notifying The Reed Group that you have received your medical certificate, you should plan to be ready for a class date at any time. Bidding If you wish to place a PBS bid for the following month, you should make the notification to The Reed Group as far in advance as possible. The absolute last time that you can be added to the PBS run for the month is 42 hours prior to the bid s closing. The notification process and inputs can have some lag time, so notification right up to the 42-hour deadline is not advised if you can avoid it, because you might not be entered into PBS bidding in time. All other bidding (vacation, vacancy, displacement, etc.) should be available as if you were an active pilot. Vacation bidding will only be available if you have accrued vacation days available to bid. CCS/FlyingTogether Access You should maintain full CCS and FlyingTogether access while on LTD. If you lose access to these services, please report it to the R&I Committee so that we can investigate the issue. ipad You may be required to return your ipad to the Company if you will have an extended absence. If you do maintain possession of your ipad, you may lose some or all Content Locker functionality. To reinstate your access to Content Locker, you may have to visit a crew base. If you can t access your Content Locker and wish to study, you can download current manuals from FlyingTogether. Attachment F 7

89 Recurring Disability If you are diagnosed with the same disabling condition within 24 months of returning to work, you are not required to satisfy another waiting period prior to receiving LTD benefits. However, your benefit will be calculated using the pay rate from your initial date of disability, if it has changed. Attachment F 8

90 Key Contact Info ALPA Lisa Kwilas THE REED GROUP UNITED BENEFITS Saundra Thompson Kathleen Plumley Attachment F 9

91 LTD Support Group Questionnaire Name Date Employee Number Phone# ALPA Number Would you like to be contacted by a fellow United pilot who is (or has been) on LTD? (Please circle one.) Yes No Would you like to be contacted by a fellow United pilot who has one of the following diagnoses? (Please circle one or more.) Cancer Heart Condition Mental Health Disorder(s) Sleep Apnea Other Would you like to be contacted the ALPA R&I Benefits Specialist? (Please circle one.) Yes No Would you like to be contacted by an ALPA member of the LTD Administrative Committee? (Please circle one.) Yes No How would you like to be contacted? (Please circle one.) Phone Do you want to contact a fellow United pilot who is on LTD? (Please circle one.) Yes No If you have any comments, questions, or concerns about the process, please UALMECRI@alpa.org. Attachment F 10

92 APPENDIX G RETIREMENT CHECKLIST CONGRATULATIONS ON YOUR UPCOMING RETIREMENT! The R&I Committee has developed this Retirement Checklist in order to answer questions you may have regarding the retirement process and your benefits. As you get closer to retirement, you should contact the required company departments and government agencies at the appropriate time prior to retirement to ensure timely receipt of your retirement benefits. Retirement Notification Process The Company assumes that you will fly until mandatory retirement at age 65. If you would like to retire early, you must notify management in writing advising of the date you plan to retire. This letter should include retirement date, U-Number, and your signature and should be turned in to your Chief Pilot s Office ( CPO ). There is no specific deadline for notifying management of your intent to retire early. Nevertheless, we suggest that you notify management after you have made a definite decision to retire early and, ideally, at least one full bid period prior to the date you intend your retirement to be effective. At a minimum, you should give at least 10 calendar days notice in order to ensure that you will be paid in a timely fashion for vacation accrued during the current vacation year (UPA Section 11-B). Final Pay If you retire at age 65, you will be paid through your last trip flown. However, you cannot fly past 0100 local domicile time the day before your birthday (i.e., if your birthday is the 15th, you have to finish your trip by 0100 on the 14th). The pay from your 65th birthday until the end of the bid month will be at 2.8 hours per day for every day. When bidding for your final month, all days from your 65th birthday until the end of the bid month will have a code placed on them (code to be determined) that will build in the 2.8 hours of credit for those days, which will decrease the available credit for you to bid for those days prior to your birthday. For early retirements, you can retire on any day in the month; however, after your last trip, you will be on no-pay status until the end of that month. If you retire early but work until the end of a given month, you will be paid through the last trip. If the last trip has carry-over to the next month, it will be dropped with no pay. You are considered to be retired on the first day of the month following your last month of flying. Since we are paid in arrears, you will receive a paycheck on the 1st and 16th of the month following your retirement. Vacation Pay If you retire at age 65, your vacation will be paid out in the following manner: the first 21 days will be an employer contribution to the PRAP. If there is not enough room in the PRAP, then the amount that will not fit in the PRAP will spill over to the RHA. Any vacation days in excess of 21 will converted to cash. Vacation value is determined as 3.25 multiplied by the number of days multiplied by your blended hourly rate. If you retire prior to age 65, you should get all of your vacation paid out as cash. Attachment G 1

93 If you retire at age 65, you will earn a month s vacation pay for the bid month that your birthday falls on. If you retire early, your last earned month of vacation pay will be the bid month prior to your retirement date. Also, if you retire on the first of a month you do not get active medical for that month. It might make sense to retire on the second day of a month to earn vacation for the prior month and get active medical for the month Miscellaneous Pay All expenses (dry cleaning, parking, meals, etc.) should be filed at least two weeks prior to your effective retirement date. This will allow Payroll time to process your expenses in a timely manner. Last Flight You must designate your last flight at least 7 calendar days prior to the trip. Reserves can aggressively pick a trip from open time after the first trip trade run is complete. Contact your CPO for assistance. Aggressive pick up out of silo cannot be done via the normal trip trade/pick up system. Contact the Chief Pilot s Office staff representative for help with positive space passes. Guest list includes only certain family members. You can choose between: Up to 4 Coach PS passes or Up to 2 Business or First Class/Business seats Make reservations with your CPO ASAP to reserve your seats. See your CPO to get a letter requesting additional hotel rooms at the crew rate. Further details in Retirement Trip Guidelines can be found on the ipad. Return your parking tags, crew badge, airport badge, Known Crewmember badge, ipad, and other related materials to the CPO. LTD Opt-Out Make sure you opt-out of the LTD Plan at least 90 days prior to your retirement date. Since there is a 90-day waiting period to commence LTD benefits and since benefits automatically end at retirement, paying premiums within 90 days of retirement will be paying a premium for no benefit. If you have more than 90 days of sick leave, then you should opt out more than 90 days prior to your retirement date (e.g., if you have 9 months of sick leave, opt out at least 9 months prior to your retirement date). The only caveat about this is that if you re retiring early, and you aren t absolutely certain you won t change your mind, you may not want to opt out; because if you opt out and then decide to revoke your notice of early retirement, you will have to show evidence of insurability to get back in to the LTD Plan. To opt-out of the LTD plan, contact the Benefits Service Center at RETIREMENT INCOME When you retire, you will have multiple options regarding your PRAP account. First and foremost, you can leave your assets in the PRAP, continue to direct their investment as you always have and begin distributions for living expenses as necessary. Similar to an IRA, required minimum distributions (RMD) are required beginning no later than April 1 of the year after the year you turn 70½. Another option is to purchase an annuity using assets from your PRAP account. You would be buying a future monthly income in exchange for some, or all, of your PRAP account. Attachment G 2

94 If desired, you can roll over your PRAP account to another financial institution when you retire. If you decide to roll over your money to a different institution, you might want to wait until you receive your final paycheck so that all of your final deposits are made into your PRAP account before you make the transfer. You can contact Schwab directly at or use the PRAP website to obtain the appropriate forms. Each option has different associated costs and fees and you should carefully consider the advantages and disadvantages prior to making any decisions. In general, the PRAP will have lower on-going costs and fees than an IRA. As always, we strongly recommend that you consult your financial and tax advisors in making your decisions. If you choose to stay in the PRAP, be sure to keep your designation of beneficiary up to date to take into account any change in your family or other circumstances after your retirement. PBGC If you participated in a terminated UAL defined benefit plan, you should contact the PBGC at least three months prior to the date you want to commence PBGC benefits. Also, you can call them anytime if you simply want to determine your estimated anticipated benefits for future retirement planning. The R&I Committee and the PBGC strongly recommend that pilots get PBGC benefit estimates at different ages so that pilots can make an informed decision about when to take their PBGC benefit. The earliest you can collect from PBGC while continuing to work for UAL is age 60, but by delaying the initiation of your PBGC benefits, your benefit amount will most likely increase. While this is true for almost all currently active UAL pilots, it is not true in 100% of cases. Therefore, when deciding whether or not to start your PBGC benefit, you should ask the PBGC not only what your benefit will be if you begin it immediately, but also what it will be if you start it at one or more future dates. If you decide to retire before age 60 (PBGC retirement age) and receive your PBGC benefit, you will need to give the PBGC: 1) Proof of termination of employment from United Airlines, 2) Proof of age such as a copy of birth certificate or passport (note that you cannot use your driver s license), and 3) A copy of your marriage certificate, if applicable. There is no correct answer whether to receive PBGC benefits at age 60, wait until age 65 or 70, or take them at some other age. It is dependent on each individual pilot s circumstances. Some factors to consider are your health, your projected longevity, and personal financial situation. Many pilots will receive the PC-4 guarantee (your situation might be different). For plans that terminated in 2004 (the pilot A-plan terminated in 2004) the straight life annuity monthly maximum guarantee is: Age 60: $2, Age 65: $3, There are many different options for payments from the PBGC and your benefit determination letter will explain the different choices and associated benefit levels (for example, straight-life annuity, joint and 50% survivor annuity, joint and 75% survivor annuity, joint and 100% survivor annuity, etc.). Please take the time to learn about the different options to ensure the best decision for you and your family. Attachment G 3

95 PBGC Contact Information Case #: CPRP and Other CAL Defined Benefit Plans If you participated in the Continental Pilots Retirement Plan or another L-CAL defined benefit plan, you should contact the CPO about three months prior to your expected retirement date. The CPO can help you with the appropriate paperwork so that your defined benefit plan payments will commence the first of the month following your last flight or turning age 65. There are many different options for payments from the CAL defined benefit plans. A single life annuity is the automatic payment if you are single. A 50% joint and survivor annuity is the automatic payment if you re married. As an alternative, CPRP participants can choose the following payments: 66 2/3% Joint & Survivor Annuity 75% Joint and Survivor Annuity 100% Joint and Survivor Annuity 10 year Certain and Life Annuity 15 year Certain and Life Annuity 20 year Certain and Life Annuity 100% Lump Sum Distribution It is important to note if you are married and choose an option other than the 50% Joint and Survivor Annuity, your spouse must consent to your choice. Please take the time to learn the different options prior to making a decision. Pilots can go to the YBR to model different annuity payments and lump sum payments, commence benefits or make elections. YBR can found by going to Flying Together>Employee Services>Your Benefits Resources (YBR) or calling the United Benefits Center at The amount of the CPRP lump sum payment is the present value of your Single Life Annuity and is based on your age and the mortality table at the time of benefit commencement, and interest rate (called segment rate) assumptions set by the Internal Revenue Service, which can change twice each year. Interest rates used in calculating lump sums are based on a corporate bond yield curve. The corporate bond yield curve interest rates used consist of three segment rates. The first segment rate is used to discount annuity payments that would be made in the next 5 years. The second segment rate is used to discount annuity payments that would be made in the following 15 years (years 6 through 20). And the third segment rate is used to discount annuity payments that would be made thereafter (years 21 and beyond). Since these segment rates are used to discount the future life annuity benefit stream, higher interest rates produce lower lump sums and lower interest rates produce higher lump sums. Thus for pilots with last day of employment from June 1 through November 30 who complete their retirement paperwork in a timely manner and elect a benefit commencement date of July 1 through December 1 will have their lump sum benefit based on the segment rates from the month of February (published in March) of that calendar year. Attachment G 4

96 Pilots with last day of employment from December 1 through May 31 who complete their retirement paperwork in a timely manner and elect a benefit commencement date of January 1 through June 1 will have their lump sum benefit based on segment rates from the month of August (which are published in September) of the prior calendar year. It is very important to note, if you are considering the lump sum and your 65th birthday is in June or December (or you are retiring early with a planned last flight in June or December) please take the time analyze whether it is financially better to retire a month earlier, due to changes in the interest rate used to calculate the lump sum. It is possible your lump sum payment could be significantly different if you retire a month earlier. Take the time to model different retirement dates based upon the published segment rates on YBR or speak with the CPO to understand your options and lump sum payments at different retirement dates. RETIREE HEALTH INSURANCE Dental Dental coverage ends on the last day of the month in which you end your employment. You might consider getting all necessary dental work done prior to your retirement. COBRA will be offered for 18 months after your retirement, and you can sign up for one month, two months, etc., up to 18 months. The approximate 2017 monthly COBRA dental rates are: COBRA 1 ADULT 2 ADULTS 1 ADULT + CHILD(REN) 2 ADULTS + FAMILY Aetna DMO $20.85 $43.79 $39.63 $62.57 MetLife Dental PPO $26.83 $53.65 $67.07 $93.89 MetLife Dental PPO Plus $31.08 $62.16 $77.70 $ MetLife Traditional $45.24 $90.47 $ $ Vision Vision coverage ends on the last day of the month in which you end your employment. Vision benefits can be continued by contracting directly with VSP. VSP will send out information after your retirement. Flex Spending Account (FSA) A pilot in his/her last year can elect an FSA amount up to the legal maximum even though he/she is not employed the entire year. The monthly FSA deductions will be the amount selected divided by 12. For instance, even if a pilot was retiring on June 30 and selected $2,500 of FSA benefit for the year, the amount withdrawn from his paycheck for the year would only be $1,250. Even though only $1,250 was withdrawn in this example, the pilot is eligible to make FSA claims on the entire $2,500. The difference in the amount between FSA elected and the FSA amount withdrawn on his paycheck will be paid by the company. However, claims can only be made on expenses while the pilot is on active service. Any expenses incurred after retirement are not eligible for FSA reimbursement. Pilots have until April 30 of the year following their retirement year to file for reimbursement of FSA expenses that were incurred while they were an active pilot. Pilots should think carefully on how they elect FSA benefits for their retirement year. It might make sense to maximize the FSA even if you are retiring early in the year if you know you will have substantial out-of-pocket expenses before you retire. As always with an FSA, it is a use or lose it proposition. Attachment G 5

97 Medical Insurance Pilots who have attained at least age 50 with 10 or more years of service are eligible to continue medical insurance with UAL during retirement. Pilots will continue to receive active medical plan benefits through the end of their retirement month. For example, if a pilot turns 65 on March 5, he will have active medical until March 31. On the first of the next month, the pilot will be covered by the Before or After-Medicare plan, depending on his age. The only caveat is that if a pilot retires on the first of a month (i.e., turns 65 on June 1), then active medical ceases on his birthday. A retiree will receive a packet of Health Insurance Information from the United Benefit Service Center. A retiree can expect to receive this package 30 days after his retirement date. A pilot can also call the Benefits Service Center or go on YBR and model different retiree medical plans to better understand his choices before retirement. When a retiree enrolls in the Medical Plan as a retiree, United will pay the first two months of his health insurance premiums and he will be covered retroactively to his retirement date. It is beneficial to enroll as soon as possible after retiring so that there will not be a disruption in coverage. Even though medical plan coverage will be retroactive to the pilot s retirement date, any medical costs incurred between the pilot s retirement date and the date coverage is reestablished will require filing for reimbursement for medical costs, which could be substantially more paperwork intensive than having coverage established at retirement. A retiree can call the Benefits Service Center at or go on YBR to enroll in a retiree medical plan even if the health insurance packet has not arrived. Approximately 5 to 6 days after the end of the month in which you turn 65 or 5-6 days after your retirement date if you retire before age 65, you should be able to enroll electronically on the YBR for your retiree health benefits. The 5 to 6 day waiting period is the time for the CPO to change your status to retired and to have updated the YBR site with your new status. If the YBR does not list you as retired 5 to 6 days after the date above, contact your CPO and make sure they have changed your status so that you can elect retiree medical coverage. Delays in the ability to select retiree medical coverage usually occur as a result of the CPO not changing your status from active to retired. If a retiree does not enroll in medical coverage, medical coverage will cease on his retirement date and there will not be two free months of coverage. To keep the option open of returning to the UAL Medical Plan, a retiree can suspend coverage (UPA Section 24-F-2-d) when first eligible for coverage or during Annual Enrollment. If the retiree suspends coverage he can return to the UAL medical plan at a later date. If a retiree desires to suspend coverage, contact the Benefits Service Center at You may also select No Coverage as a medical plan option on the YBR. IMPORTANT: If a retiree waives coverage, by electing the No Coverage option, he can never return to the UAL Medical Plan. IMPORTANT TIP: If retired and not using the UAL medical plan, always suspend coverage so you have the option to come back into the plan. To return to the UAL medical plan, a retiree that suspended coverage will need to provide the benefits service center a certificate of creditable coverage establishing proof of continuous coverage under a group health plan, Medigap Plan J, Medigap Plan G or F, TriCare, or a Medicare HMO during the period for which retiree medical coverage was suspended. Retirees who elect to continue medical coverage after retirement participate in the annual open enrollments just as they did before retirement. Depending on their age, they will be able to select from among the Before-Medicare or After-Medicare Benefits. IMPORTANT: Spouse/dependents are only covered under the UAL Medical Plan if the pilot stays in the UAL Medical Plan. If you have a life event (marriage, dependents, etc.), you can add these new additions to your family to your insurance if you apply within 45 days of the life event. If a retiree has suspended coverage, a life event will enable the retiree to re-enter the Medical Plan within this 45 day period. In the absence of a life event, a retiree who has suspended coverage needs to wait until Open Enrollment to re-enter the plan. Attachment G 6

98 You will pay for your medical insurance every month. You can choose to receive a payment coupon or set up an auto-withdrawal from a bank account. To learn more about these options contact the Benefits Service Center at or got to the YBR at Flying Together > Employee Services > Benefits > Your Benefit Resources. However you make payments, do not be late making your payments. If you are more than 30 days late on your payments, you will lose your medical benefits. Before-Medicare Medical Benefits: If a retiree is under age 65, he will be in a Before-Medicare Plan. All plans that are available to active pilots are available for retirees in the Before- Medicare Plans. The premiums for retirees are greater than active pilots. Retirees pay the following percentages of the plan costs based on their Years of Service at retirement: YEARS OF SERVICE % OF COST 25 and over 40% 20 up to 25 60% Fewer than 20 80% Active pilots in the PPO pay 20% of the cost; therefore retired pilots with over 25 years of service would see their PPO contributions double, pilots with years would see their PPO contributions triple and those with fewer than 20 years would see their PPO contributions quadruple. Even the maximum Before-Medicare rates are believed to compare favorably to individually available Before-Medicare commercial insurance health coverage. After-Medicare Medical Benefits: If a retiree is age 65 or older, the pilot will be in an After-Medicare Plan. Medicare will be the primary payer and the UAL After-Medicare plan will be secondary payer. UAL is required to offer at least one supplemental plan to Medicare. They currently offer three. (Some pilots are also eligible for HMO(s) depending on where they live.) UAL contributes $90 per month per covered individual in an After-Medicare plan. The pilot pays the remaining amount. Pilots can currently choose between the following plans (2017 premiums are listed): 2017 MEDICAL PLANS ADULT After-Medicare Medical $ United Medicare Select $ After-Medicare Drug Only $ Various HMOs Varies by Plan You can learn more about these plans and their plan design by logging into Skynet (not FlyingTogether), Employee Services, Benefits, 2011 Plan Summaries Retirees. Coverage Methodology Retiree Pilot and Spouse Both Under age 65: Both would be covered under the Before-Medicare Plan. Attachment G 7

99 Retiree Pilot over age 65 and Spouse under age 65: Pilot covered under the After-Medicare Plan (1 Adult), Spouse under Before-Medicare plan (1 Adult). If they have children, spouse and children covered under Before-Medicare plan (1 Adult and Child(ren)). Retiree Pilot under age 65 and Spouse over age 65: Pilot covered under Before-Medicare Plan (1 Adult or 1 Adult and Child(ren), if applicable). Spouse covered under After-Medicare Plan (1 Adult). Retiree Pilot and Spouse over age 65: Both covered under After-Medicare Plan (2 Adults). Active Pilot with Spouse over age 65: Both covered under active medical plan. Retiree Health Account (RHA) The RHA is a tax-efficient way to pay for retiree medical expenses. All pilots have an RHA. Retired pilots will be able to be reimbursed from the RHA for qualified medical expenses they have incurred after retirement. Medical and dental contributions, out-of-pocket medical and dental costs, and longterm care premiums are just some examples of the medical costs that can be reimbursed. You have the ability to minimize or maximize contributions to your RHA depending on when you retire. Pilots who want to minimize their RHA spillage should carefully consider whether to contribute to their 401(k), while pilots that want to maximize their RHA spillage should consider front loading their 401(k) contributions. See the RHA section of the Benefits Book for more information.. If this analysis is difficult to follow, please don t hesitate to reach out to the R&I Committee and we can help you understand this issue and help you determine how to contribute to your PRAP. Contact us at UALMECRI@alpa.org. Life Insurance Company-paid life insurance will cease when a pilot retires. To convert your company-paid life insurance into an individual policy, contact Minnesota Life at If you have Group Variable Universal Life (GVUL) coverage, this can continue into retirement. Your premiums will be direct billed to you by MetLife. OTHER Credit Union If you re using the Alliant Credit Union (or any bank, for that matter) to pay your bills because you had your UAL paycheck deposited there, make sure that your future payments (Social Security, PBGC, retirement account disbursements, etc.) are deposited in such a way to cover your future bills now that you won t have a United Airlines paycheck going into that account anymore. Travel Benefits Retirees no longer receive higher boarding priorities due to their years of service unless using a vacation pass. A complete summary of retiree pass travel privileges can be found by clicking the Travel tab on Flying Together, then locating the Additional Information section in the middle of the page. Then, click on Retiree Pass Travel Privileges to open a PDF outlining all of your retirement travel benefits in detail. Attachment G 8

100 As a brief summary: Retirees with 25 or more years of active service, and their eligible pass riders, receive fee-waived pass travel in all cabins system wide. On January 1 of each year, eligible retirees will be issued 8, one-way family vacation epasses for higher boarding (SA0V) priority, space available travel. If not using a vacation epass, boarding priority will be SA2R or lower. This is one priority class lower than active employees. Retirees can register up to two enrolled friends in addition to a spouse/domestic partner. Retirees are still eligible to purchase regular tickets on United at a 20% discount. A new United retiree badge is only available via electronic/online ordering for a $35 fee. By visiting the below path, you will find the ordering page, instructions, and a frequently asked questions document. The badge was intended to provide retirees (those that wished to have it) with a tangible link to their former employer and supplement the Verification of Eligibility Letter when attempting to apply for any applicable discounts offered to United retirees. This badge is in no way mandatory nor is it required for pass travel. Flying Together > employeeres > Quick Links > Employee Profile > Click here to obtain your retiree badge. Retirees will pre-pay all service charges and taxes for themselves and eligible pass riders with a credit card on employeeres at the time booking is made. If your travel plans change, cancel your booking through employeeres prior to the travel date for an automatic refund. If your booking is not cancelled prior to the travel date, allow 5 7 days for a refund. If you pay for a premium seat and sit in economy, refund requests are made online at > reservations > refund. Retirees and their spouse or domestic partner are eligible for free emergency, positive-space roundtrip travel when either of you becomes ill while traveling. Contact the Employee Travel Center Monday through Friday from 8:00 5:00 p.m. at , option number 5 or at ETC@united.com. For questions regarding policies and program information, you can contact the United Employee Travel Center at ETC@united.com. Retirement Picture Your local council may pick up the cost of a retirement aircraft photograph. If you would like to purchase a photo for your fellow pilots to sign, you will have to order it yourself. Check with your local CPO for the Welcome to Retirement Letter (FAQs). This FAQ contains a list of photographers who can provide you with the photo of your choice. Retired United Pilot Association (RUPA) and Golden Eagles RUPA and the Golden Eagles are a central point for retirees to continue the camaraderie of flying the line. RUPA and the Golden Eagles have local groups of retirees that meet periodically throughout the U.S., and they publish a monthly magazine and keep their website up-to-date on various issues especially pass travel issues and health benefits. To learn more about RUPA or the Golden Eagles visit their websites at or GOVERNMENT BENEFITS Social Security Contact the Social Security Department at to commence your Social Security benefit. You must be at least 61 years and 9 months old to apply. You should apply no more than four months prior to your requested start. If you are over 62, benefits could start the month you apply (retroactively, where appropriate). Attachment G 9

101 If you want to estimate what your future Social Security retirement benefits will be, go to The Social Security website is robust, and you can model different payments and try to understand when is the most beneficial time to commence benefits for you and your spouse (if applicable). There are literally hundreds of different benefit options available, and diligence is required prior to making decisions that could have a substantial impact on your benefit. Your health and projected longevity are important factors in your decision process. There has been considerable research on Social Security maximizing strategies. There are a number of websites and documents on the internet that can help explain Social Security maximizing strategies. Please take the time to understand all the different strategies for taking Social Security benefits. The R&I Committee covers these strategies in their Retirement Seminar; you can view a video of this presentation on the MEC website under R&I. If you have any questions concerning Social Security call Medicare Medicare will become your primary health insurance when you reach age 65, and your UAL coverage (if you keep it) becomes secondary. You must sign up for Medicare three months before your 65th birthday to maximize your benefit and minimize your costs. Sign up at the Social Security website, The Medicare website is a good source of information regarding Medicare. If you fly until you are 65 years old, Medicare will cover you on the first day of the month you turn 65. Medicare Part A will be free, and Medicare Part B has a premium. UAL will continue to cover you under active medical benefits through the end of your birth month, and UAL insurance will be the primary payer of your insurance needs for that month. For your birth month, even though you have Medicare, UAL insurance will handle your insurance needs. Due to this fact, having Medicare Part A and Part B for that month is extra coverage. Since Medicare Part B has a premium, you should consider commencing Medicare Part B the month after your birth month to save one month of Part B premiums. For example, you turn 65 on March 5. You will receive active UAL medical until March 31. If you applied for Medicare Part A and Part B three months prior to retirement, your Medicare benefits will commence on March 1. Since Part B has a premium, it will save you one month of Part B premiums by delaying the start of Part B until April 1. An easy way to accomplish this would be to apply only for Part A on the initial application. Once you enter your birth month, you would apply for Part B. This cannot be completed online and will need to be done in person. This would also be the appropriate time to turn in your SSA-44 form, discussed below. There is one exception to this guidance, a pilot who has his 65th birthday on the first of a month will go into Medicare the day he turns 65. For instance, if the pilot s birthday is March 1, After-Medicare will commence on March 1, not April 1. For pilots with a birthday on the first of the month, they should commence Medicare Part B on their birthday. Medicare Part B premiums in 2017 are $ per person per month. However, the premiums will increase if your AGI is greater than $85,000 if you are single or $170,000 if you are married. The Social Security uses a look back period to determine your income for Medicare purposes, currently two or three years. Since most pilots will be above those limits when applying for Medicare due to the salary look-back period, you should fill out Form SSA-44, Medicare Income-Related Monthly Adjustment Amount Life-Changing Event which you download at the SS website. Choosing Work stoppage as the event might be the easiest way to fill out this form and bring your premiums down to $ TRICARE Military retirees have access to medical insurance through TRICARE. For more information visit the TRICARE website at Attachment G 10

102 SUMMARY Countdown Checklist 1 Year Before Retirement: Familiarize yourself with Social Security, Medicare, PBGC, CPRP A-Plan (and the CARP, if you participated in that plan), and the myriad of options available to you with each of these programs. Consider contacting professionals (financial planners, government benefit specialists) to help you make important future decisions. Determine how much to contribute to the PRAP in your final year, realizing that there might be spillage to your RHA account with the 21 days of vacation forfeiture to the PRAP. Consider how you are going to obtain medical insurance and how much it is going to cost. Determine how much Flex Spending Account (FSA) you would like deducted from your checks. Do you want to order a retirement photo and place it in OPS to be signed? 3 4 Months Before Retirement: Minimum amount of lead time you want to give Social Security, Medicare, PBGC, and CPRP A-plan. Opt-out of LTD though maybe sooner if you have a lot of sick leave built up. 1 2 Months Before Retirement Minimum amount of notice you want to give management for your retirement letter. Ensure that your future Social Security, PBGC, retirement account distributions, etc. are going to the correct bank account to cover your bills now that your UAL paychecks aren t going there anymore. Arrange the details of your retirement flight (ID, arrange BP3 for spouse). 1 2 Months After Retirement Have you received your final paycheck? Do you want to rollover your PRAP balances to a different investment service provider? Make sure all of your final deposits from the company have been made before the rollover. Select your UAL medical benefits, COBRA, etc., if desired. Remember, the company only pays for medical for two months, and you don t want coverage to lapse. If you opt not to choose a UAL medical plan, remember to suspend your coverage so you have the option to return to the UAL medical plan in the future. If you waive coverage, you may not be able to return to UAL Medical. OTHER USEFUL LINKS Skynet Retirement and Money Matters UAL Benefits Useful Phone Numbers Attachment G 11

103 Contact Numbers and Websites Benefits, How to Enroll, and Using YBR TOPIC CONTACT TELEPHONE WEBSITE UAL Benefits Center M F 7 a.m. 7 p.m. CT Flying Together > Employee Services > Benefits > Your Benefits Resources Find a Doctor or Other Provider and for More Aetna Details on Your Medical Plan BC/BS Find a Doctor Tool on YBR Flying Together > Employee Services > Benefits > Your Benefits Resources > Find a Doctor Flexible Spending Accounts (FSAs) United Airlines Benefits Center Flying Together > Employee Services > Benefits Mental Health and Substance Abuse Services Beacon Health Options (BC/BS and Aetna plans) Dental Plans Dental PPO Plan Aetna DHMO Vision Plans VSP Vision Care Life Insurance Superior Vision MetLife Minnesota Life GVUL Continuing Life Insurance Prescription Drugs CVS/Caremark United Pass Travel Employee Pass Travel ETC@united.com PRAP Schwab PRAP PBGC PBGC Social Security Social Security Medicare Medicare Retired Military Health Benefits Tricare Telephone numbers vary by location Attachment G 12

104 APPENDIX H PREPARING FOR THE UNEXPECTED 2017 A Guide for Pilots, Beneficiaries, and Survivors Attachment H 1

105 This guide was developed by the Air Line Pilots Association, International (ALPA) and United Airlines to assist you in considering your current situation and provide tools for planning. The forms in this guide are intended to help you arrange your critical information, outline resources available to your loved ones, and provide them information in the event of your death. ALPA and United Airlines resources are listed within this document for further reference. If you have questions regarding anything in this guide, please don t hesitate to contact ALPA. AIR LINE PILOTS ASSOCIATION, INTERNATIONAL (ALPA) Master Executive Committee Office 9550 West Higgins Road, Suite 1000 Rosemont, IL Lisa Kwilas, UAL MEC Benefits Specialist Lisa.Kwilas@alpa.org (847) ALPA Critical Incident Response Program Bill Cheney, UAL MEC CIRP Chair and ALPA Int l CIRP Vice Chairman Bill.Cheney@alpa.org (732) John McFadden, UAL MEC CIRP Vice Chairman John.McFadden@alpa.org (847) ALPA Retirement and Insurance Committee Fred Greene, UAL MEC Retirement and Insurance Chairman Fred.Greene@alpa.org (760) Cover image: Getty Images Attachment H 2

106 TABLE OF CONTENTS Part I: Getting Started... 4 Organize Important Papers Importance of a Will...5 Revocable Living Trust...5 Insurance Beneficiaries...5 Social Security Information...5 Part II: Information for Survivors... 6 Taking Care of Yourself and Loved Ones: Coping with Grief...6 Checklist: Things to Do When a Person Dies...11 Chief Pilot Offices...13 Company Benefits...13 Helpful Contact Numbers and Websites...15 Change Ownership of Accounts, Policies, Titles, etc Cancel What Is No Longer Needed...16 Settling the Estate...16 Part III: Forms to Help Organize Information Family Member Information...17 Family Marriage Information...19 Family Health Information...20 Veterans Benefits...22 Social Security...22 Locations of Family Documents...23 Organization...24 Real Estate...25 Vehicles...28 Locations of Real Estate/Vehicle Documents...30 Locations of Financial Documents...31 Insurance Policy...32 Financial Account...34 Special Instructions and Information...37 Attachment H 3

107 PART I: GETTING STARTED ORGANIZE IMPORTANT PAPERS One of the first things you ll want to do is to organize all your important papers so that survivor(s) and the executor of your estate can refer to them quickly and easily. You may also want to consider putting the most important papers in a fireproof box or safety deposit box. The checklists in this guide should be helpful in determining the types and location of paperwork that may be needed by your family and/or survivors. If you, the pilot, don t have the time or energy to gather all the necessary paperwork, ask a relative or a friend for help. Birth, marriage, and death certificates are just a few of the documents that can be obtained by people other than yourself. Important documents include: Wills/trust agreements Safe deposit keys Life insurance policies Group insurance certificates Pension/retirement plan statements 401(k) documents IRA/Keogh information, statements, contacts Stock certificates, bonds and other investments Bank account checkbooks, savings accounts, CDs Business arrangements Bills, notes payable and receivable, installment contracts, etc. Mortgage and deed papers (personal, rental, commercial) Credit card accounts Vehicle titles and registration cards Social Security numbers Birth certificates Marriage certificates (including those for children) Military discharge papers Veterans Administration claim numbers Divorce decrees/property settlements Powers of attorney Income tax returns W-2 Forms and other records of earnings Service contracts Membership cards Funeral arrangements Attachment H 4

108 IMPORTANCE OF A WILL If you die without a will, the state law and the courts determine who will administer your estate, handle financial matters, and act as guardian for any minor children. If you don t leave valid instructions about your estate, your property generally goes to your spouse or your closest heirs, which may not be what you want to do. Also, the state could assign someone you wouldn t trust to manage the distribution of your property or be the legal guardian of your minor children. With a will, you, the pilot, can choose. Without a will, state law and the courts determine who will administer your estate, handle financial matters, and act as guardian for your minor children. In some instances, joint ownership of property may not be a good substitute for a carefully drafted will. As a result of a common accident, both the pilot and his/her spouse may die before the survivor has had an opportunity to execute a proper will and the property will pass according to state law. The law is very exacting in its requirements with respect to the publication, signing and witnessing of wills. It is recommended that this be handled by a competent attorney. Homemade wills often do not stand up in court. When you, the pilot, realize how much is at stake the well-being of your entire family and the protection of your property you will find that the attorney s fee for drafting your will and planning your estate is well worth the expense. Every pilot should review his/her will every few years, particularly following a change of residence or other life change. State laws vary as to formal requirements and as to the rights of children and grandchildren born after a will was executed. REVOCABLE LIVING TRUST A revocable living trust is a written agreement designating someone to be responsible for managing your property. Both a will and a living trust contain your inheritance instructions, meaning who gets what, when they get it, and how. It s called a living trust because it s established while you re alive. It s revocable because, as long as you re mentally competent, you can change or dissolve the trust at any time at your own discretion for any reason. Typically, a living trust becomes irrevocable (cannot be changed) when you die. Check with a lawyer or estate planner to determine if a revocable living trust is right for your circumstance. INSURANCE BENEFICIARIES A review of company provided life insurance policies held by United pilots indicated that more than 600 pilots did not list a beneficiary on their company-provided policy. Be sure to check beneficiaries on all insurance policies to ensure your money will go where you want it to go following your death. This is especially important following a significant life change. SOCIAL SECURITY INFORMATION It is a good idea to check Social Security records every three years to make sure that earnings are being correctly reported. To receive an estimate of how much you have paid into Social Security and estimates of the benefits you and your family might expect, log on to Attachment H 5

109 PART II: INFORMATION FOR SURVIVORS TAKING CARE OF YOURSELF AND LOVED ONES: COPING WITH GRIEF What Is Grief? An unfortunate fact of life is that we will all experience grief at some point. Losing someone or something we love is very painful. The grieving process can include emotional and even physical suffering, and may feel as though it will never get better. Generally, the more significant the loss, the more significant the grief will be. Usually the death of a loved one will trigger the most intense grief. However many other losses can cause us to grieve, including loss of job, serious illness, divorce, retirement, miscarriage, loss of financial security, loss of friendship, loss of a pet, or children moving away. There is no right or wrong way to grieve. We all grieve differently based on many factors, including the nature of the loss, personality, coping mechanisms, culture, life experience, support system, and faith. There is no timetable for grieving. Grieving is a personal and individual experience. Some may appear to bounce back from significant loss in a matter of several weeks or months, while for others the process may take years. The healing process can t be rushed. It s important to give yourself the time and space to cope at your own pace. The Stages of Grief: From the Center for Grief and Healing, psychiatrist Elisabeth Kübler-Ross identified five stages of grief that include: Denial: This can t be happening to me. Anger: Why is this happening to me? Who is to blame? Bargaining: Make this not happen, and I will do. Depression: I m too sad to do anything else. Acceptance: I m now at peace with what happened. The five stages of grief were intended as a general framework and it is common for individuals to skip stages, experience stages out of sequence, or go back and forth between stages. Grief is a normal way of coping with loss. Fact vs. Myth There are many myths about grief. Like any misinformation, it is important to know the facts about what you are experiencing. Myth: The pain will go away faster if you ignore it. Fact: Trying to ignore your pain or keep it from surfacing will only make it worse in the long run. For real healing it is necessary to face your grief and actively deal with it. Myth: It s important to be be strong in the face of loss. Fact: Feeling sad, frightened, or lonely is a normal reaction to loss. Crying doesn t mean you are weak. You don t need to protect your family or friends by putting on a brave front. Showing your true feelings can help them and you. Attachment H 6

110 Myth: If you don t cry, it means you aren t sorry about the loss. Fact: Crying is a normal response to sadness, but it s not the only one. Those who don t cry may feel the pain just as deeply as others. They may simply have other ways of showing it. Myth: Grief should last about a year. Fact: There is no right or wrong time frame for grieving. How long it takes can differ from person to person. Common Symptoms of Grief From Helpguide.org, there are common symptoms of grief, as well as strategies for coping with grief. Shock and disbelief After a loss, it can be hard to accept what happened. You may feel numb, have trouble believing that the loss really happened, or even deny the truth. If someone you love has died, you may keep expecting them to show up, even though you know they re gone. Sadness Profound sadness is probably the most universally experienced symptom of grief. You may have feelings of emptiness, despair, yearning, or deep loneliness. You may cry a lot or feel emotionally unstable. Guilt You may regret or feel guilty about things you did or didn t say or do. You may also feel guilty about certain feelings. After a death, you may even feel guilty for not doing something to prevent the death, even though there was nothing more you could have done. Anger Even if the loss was nobody s fault, you may feel angry and resentful. If you lost a loved one, you may be angry at yourself, God, doctors, or even the person who died for abandoning you. You may feel the need to blame someone for the injustice that was done to you. Fear A significant loss can trigger a host of worries and fears. You may feel anxious, helpless, or insecure. You may even have panic attacks. The death of a loved one can trigger fears about your own mortality, of facing life without that person, or the responsibilities you now face alone. Physical symptoms We often think of grief as a strictly emotional process, but grief often involves physical problems, including fatigue, nausea, lowered immunity, weight loss or weight gain, aches and pains, and insomnia. How to Cope With Grief Turn to family and friends Lean on the people who care about you, even if you take pride in being strong and self-sufficient. Draw loved ones close, rather than avoiding them, and accept the assistance that s offered. Oftentimes, people want to help but don t know how, so tell them what you need. Draw comfort from your faith If you follow a religious tradition, embrace the comfort its mourning rituals can provide. Spiritual activities that are meaningful to you, such as praying, meditating, or going to church, can offer solace. If you re questioning your faith in the wake of the loss, talk to a clergy member or others in your religious community. Join a support group Grief can feel very lonely, even when you have loved ones around. Sharing your sorrow with others who have experienced similar losses can help. To find a bereavement support group in your area, contact local hospitals, hospices, funeral homes, and counseling centers. Talk to a therapist or grief counselor If your grief feels like too much to bear, call a mental health professional with experience in grief counseling. An experienced therapist can help you work through intense emotions and overcome obstacles to your grieving. Face your feelings You can suppress your grief, but you can t avoid it forever. In order to heal, you have to acknowledge the pain. Trying to avoid feelings of sadness and loss only prolongs the grieving process. Unresolved grief can also lead to complications such as depression, anxiety, substance abuse, and health problems. Express your feelings in a tangible or creative way If you ve lost a loved one, write a letter saying the things you never got to say; make a scrapbook, journal, or photo album celebrating the person s life; or get involved in a cause or organization that was important to him or her. Attachment H 7

111 Look after your physical health The mind and body are connected. When you feel good physically, you ll also feel better emotionally. Combat stress and fatigue by getting enough sleep, eating right, and exercising. Don t use alcohol or drugs to numb the pain of grief or lift your mood artificially. Don t let anyone tell you how to feel, and don t tell yourself how to feel either Your grief is your own, and no one else can tell you when it s time to move on or get over it. Let yourself feel whatever you feel without embarrassment or judgment. It s okay to be angry, yell, cry or not cry. It s also okay to laugh, to find moments of joy, and to let go when you re ready. Plan ahead for grief triggers Anniversaries, holidays, and milestones can reawaken memories and feelings. Be prepared for an emotional wallop, and know that it s completely normal. If you re sharing a holiday or lifecycle event with other relatives, talk to them ahead of time about their expectations and agree on strategies to honor the person you loved. Psychologist Jack LoCicero, in The Experience of Grief, identified five tasks a griever must manage in order to successfully transition through their grief. Acknowledge the Loss 1. This task is often characterized by shock, disbelief, and confusion. It is common for the individual to have intellectual awareness of the death but not have the emotional understanding of the reality of the loss. Acknowledging the Loss Experiencing the Pain Readjusting to the Loss Reinvesting Emotional Energy Reconciling the Loss Shock/Denial Disbelief SHOCK DEATH/LOSS ADAPTATION Struggling with New Roles and Responsibilities SENSE OF HEALING Developing New Environments, Relationships, Activities NEW DIRECTIONS Remembering with Less Pain Confusion Fear/ Anxiety Panic Bargaining Depression Anger/Guilt Lowered Self Esteem Pre-occupation Retell Story Loneliness DISORIENTATION Fear of Losing Control Opportunities Acceptance Healing Growth Hope Struggling Missing Yearning Envy Fear Sadness/Despair Helplessness Frustration Limbo Resentment Adapted from The Experience of Grief, Jack LoCicero, PhD. Attachment H 8

112 It is the body s way of protecting itself from being overwhelmed with the full impact of the death. A period of shock can last anywhere from hours to days to months. The more traumatic and unexpected the death, the longer the shock may last. It is not unusual for the shock to last from 30 to 60 days and even longer in some situations. Experience the Pain 2. During this task, the individual is overwhelmed with intense emotions, thoughts, feelings, and physical reactions to their grief. It is a time of disorientation with the individual fearing a loss of control over their mind and body. It can be very disconcerting to find such intense emotion in one s body and not be able to control it. The individual may experience many conflicting feelings that are confusing and unsettling to them. Anger and guilt are two normal feelings that may accompany grief and yet they have the potential to do the most damage if the individual cannot process them and let them go. This part of their grief can last for many months. It is important not to try to escape the pain by staying busy or taking medication to deaden the feelings of grief. Neglecting your feelings will only delay your grief work and intensify the feelings. Working through the pain of one s grief may be one of the most diffcult tasks of life. Readjust to the Loss 3. This the time of struggling with new roles and responsibilities. The task is to adapt to the new environment. There may still be strong feelings of missing the individual and yearning to have them back. There are many challenges like learning to be a single parent, becoming comfortable with the finances, learning to cook, being single again in a couple-oriented society, rethinking parenting styles, and many others. It is common for the person to resent the roles that have been forced upon them, but they know they must move forward to survive. Reinvest Emotional Energy 4. New roles and responsibilities eventually become less painful and more satisfying. Effectively taking on these new roles and responsibilities can assist in giving a sense of positive self-worth as the individual begins to feel capable of taking care of themselves. Having survived such a great crisis, they now see the light at the end of the tunnel. There is a need to reinvest emotional energy into new tasks, relationships, hobbies and other things that begin to help define the new person, which is beginning to emerge. Reconcile the Loss 5. As one begins to take their life in new directions, there is an opportunity to focus energy on making decisions on the future and the quality of life. They understand that moving on in life is a necessity that in no way questions their love or commitment to the person that has died. They transform their relationship with the deceased from one of physical to one of memory. They are comfortable bringing the deceased back into their lives during those special dates to celebrate the life they shared together, without it hurting their efforts of moving forward. They understand that grief is not the process of forgetting, but of remembering with less pain. What to Do When Grief Remains (from Helpguide.org) While we all deal differently with grief, the pain you experience should start to ease with time. If you seem to be stuck in a state of intense mourning such that you can t resume your life, you may be suffering from complicated grief or even major depression. Distinguishing between complicated grief and clinical depression can be challenging, since they have similar symptoms. Grief involves a wide variety of emotions and a mix of good and bad days. Even in the middle of the grieving process, you will have moments of happiness. With depression, however, the feelings of emptiness and despair are constant. Attachment H 9

113 Complicated Grief Symptoms of complicated grief include: Intense longing and yearning for the deceased Intrusive thoughts or images of your loved one Denial of the death or sense of disbelief Imagining that your loved one is alive Searching for the person in familiar places Avoiding things that remind you of your loved one Extreme anger or bitterness over the loss Feeling that life is empty or meaningless Depression Symptoms of depression include: Intense, pervasive sense of guilt Thoughts of suicide or a preoccupation with dying Feelings of hopelessness or worthlessness Slow speech and body movements Inability to function at work, home and/or school Seeing or hearing things that aren t there If you recognize any of the symptoms of complicated grief or clinical depression, talk to a mental health professional right away. Untreated, complicated grief and depression can lead to significant emotional damage, life-threatening health problems, and even suicide. Proper treatment will help you get better. Contact a mental health professional immediately if you: Feel like life isn t worth living Wish you had died with your loved one Blame yourself for the loss or for failing to prevent it Feel numb and disconnected from others for more than a few weeks Are having difficulty trusting others since your loss Are unable to perform your normal daily activities If you or family members are suffering from the effects of grief, you may want to seek support. If you would like to talk with a United pilot or the spouse of a pilot, contact Capt. Bill Cheney, UAL MEC CIRP chairman and ALPA Int l CIRP vice chairman, at Bill.Cheney@alpa.org or (732) ; or John McFadden, John.McFadden@alpa.org or (847) You may also access grief support information through United Airlines mental health provider at Attachment H 10

114 CHECKLIST: THINGS TO DO WHEN A PERSON DIES Place an X in the left column when the item has been completed. Notify immediate family and close friends. Notify other members of family and friends. Evaluate the emotional impact on the surviving spouse, children, close relatives, friends; arrange for support. Deal with donation of bodily organs to an organ bank, as appropriate. Arrange care for dependents, if any. Notify attending physician or coroner. Arrange care for pets, if any. Evaluate the need for security at decedent s residence. Cancel or rearrange home deliveries? Have Post Office hold mail? Find perishable property (food, plants, etc.), arrange for care or disposal. Find and review decedent s expressed funeral and burial wishes. Notify agent under any power of attorney. Prepare and arrange for obituary. Arrange for mortuary, cemetery, burial, cremation, as appropriate. Arrange funeral/burial services, keeping records of all payments for these and other expenses. Locate safe deposit box(es); follow safe deposit box procedures. Locate wills, codicils, trusts. Locate life insurance policies. Locate other important documents, relationships, accounts, investments, etc. Advise Social Security, Medicare, other agencies as appropriate. (continued) Attachment H 11

115 Investigate social security benefits. Investigate life insurance and meet with life insurance agent to collect proceeds or consider options. Investigate union death benefits. Investigate veterans burial allowance and other benefits. Investigate fraternal organizations. Investigate employee benefits, including accrued vacation pay, death benefits, final wages, retirement plans, deferred compensation, medical reimbursements. Investigate refunds on insurance or canceled subscriptions. Investigate Keogh and IRA accounts. Investigate business, partnership and investment arrangements. Retain and meet with attorney regarding estate matters. Retain and meet with CPA as to tax and accounting matters. Obtain death certificates (ask attorney how many are needed). Deal with fire, theft, liability and auto insurance on decedent s property. Work with attorney and CPA to prepare inventory, list of accounts and list of debts. Do not pay any of decedent s debts until attorney discusses with family or executor. Review credit cards and charge accounts, cancel as appropriate. Obtain valuations of assets, as appropriate. If a trust is involved, arrange for any allocations and transfers. Arrange for final income tax return and estate tax return, as necessary. Based on information from H.E.L.P. (Healthcare and Elder Law Programs Corporation) Attachment H 12

116 CHIEF PILOT OFFICES Each Chief Pilot s Office (contact information below) is staffed by pilots and administrative personnel who can provide a centralized source of information for survivors. Chief Pilot s Office personnel can assist with most transportation needs including the transportation of the deceased. An Honor Guard of pilots should be anticipated unless their attendance is not desired by the family. Chicago (773) or (310) Los Angeles (424) Cleveland (216) Newark (973) Denver (303) or (303) San Francisco (650) Guam (671) Seattle (206) Houston (281) or (281) Washington, D.C. (703) New York (703) COMPANY BENEFITS Several benefits are available to designated beneficiaries and surviving spouses of United pilots. These benefits may have accumulated during the pilot s employment or have been negotiated to be available upon the passing of the pilot. Beneficiaries of pilots who were hired at Continental Airlines or United Airlines may have slightly different benefits available due to benefit plans that were in effect prior to the merger. See the table of benefits (next page) available to pilots who were hired at United Airlines, Continental Airlines, or who were hired after the joint collective bargaining agreement was reached between the pilots at United and Continental Airlines. The pilot may have elected minimum coverage or contributions for some of the benefits below, or may have bought up to an increased benefit. It is recommended that the beneficiary inquire about the applicable benefits with the Benefits Center as soon as practical after the pilot s death. The Company also offers voluntary life insurance and personal accident insurance products which may have been elected during annual enrollment. If you are unsure of the existence of any voluntary coverage, please inquire with the Benefits Center. In all cases, the survivor should contact the Benefits Center and provide the pilot s name, employee or file number, and Social Security number. The Benefits Center representative will provide advice about the documents that will be needed to obtain the benefits due the beneficiary/surviving spouse. United Airlines Benefits Center (800) Monday Friday, 7:00 a.m. 7:00 p.m., central time Attachment H 13

117 Employee Travel Center (when unable to coordinate travel through Chief Pilot s Office) (877) x5 x5 or etc@united.com Monday Friday, 8:00 a.m. 5:00 p.m., central time After hours, call (832) ALPA Benefits Personnel UAL MEC Office (800) or (847) Lisa Kwilas, UAL MEC Benefits Specialist (847) (direct), or Lisa.Kwilas@alpa.org Fred Greene, UAL MEC R&I Chairman, Fred.Greene@alpa.org, (760) BENEFIT LEGACY UNITED LEGACY CONTINENTAL HIRED AFTER 1/1/2013 PRAP Yes Yes Yes A-Plan (CPRP) Pension No Yes 1 No PBGC former UAL Defined Benefit Pension Yes 2 No No Survivor Health Insurance Yes 3 Yes 3 Yes 3 Company Paid Life Insurance Yes Yes Yes Personal Accident Insurance (PAI) Yes Yes Yes Business Travel Insurance Yes Yes Yes Travel Yes 4 Yes 4 Yes 4 1 Only if hired prior to 4/1/2005 and only available to a surviving spouse. It is important for the surviving spouse to obtain a Continental Retirement Plan determination of the benefit due. The type of benefit and timing are also important. If the pilot was eligible for early or normal retirement, the spouse may elect a lump sum distribution. 2 A preretirement benefit is only available to a qualified spouse under the terminated UAL Pilots Fixed Benefit Plan Termination. If pilot was receiving PBGC benefits prior to death, then those elections will be applied. Refer to 3 With 10 or more years of active service prior to pilot s death, spouse will have medical coverage at the same premiums as active pilots until they reach age 65. Medical coverage continues after age 65 in the After-Medicare medical plan. Children are covered until age 26. If a child is disabled, then coverage can continue longer. If the pilot had less than 10 years of service, the spouse will have the same premiums as active pilot for 3 months then COBRA is available for 36 months. 4 Eligibility is based on years of service. Attachment H 14

118 HELPFUL CONTACT NUMBERS AND WEBSITES TOPIC CONTACT TELEPHONE WEBSITE Benefits, How to Enroll, and Using Your Benefits Resources (YBR) UAL Benefits Center M F, 7 a.m. 7 p.m. CT (800) FlyingTogether.ual.com > Employee Services > Benefits > Your Benefits Resources Aetna (800) Finding a doctor or other provider and for more details on your medical plan Mental Health and Substance Abuse Services Blue Cross Blue Shield (800) BCBS 24/7 Nurseline (800) Find a Doctor tool on YBR Beacon Health Options (BC/BS and Aetna plans) FlyingTogether.ual.com > Employee Services >Benefits > Your Benefits Resources > Find a Doctor (800) Life Insurance MetLife GVUL (800) Prescription Drugs CVS/Caremark (for PPO Plans) (844) United Pass Travel Employee Pass Travel ETC@united.com PRAP Schwab (866) PBGC Case No A-Plan (CPRP and CARP for Texas International Group Benefits) PBGC (800) UAL Benefits Center M F, 7 a.m. 7 p.m. CT (800) FlyingTogether.ual.com > Employee Services > Benefits > Your Benefits Resources Social Security Social Security (800) Medicare Medicare (800) Retired Military Health Benefits Tricare Telephone numbers vary by location Attachment H 15

119 CHANGE OWNERSHIP OF ACCOUNTS, POLICIES, TITLES, ETC. Any joint bank accounts should be transferred to the surviving individual s name. The survivor may also want to change joint insurance coverage and consider making beneficiary changes to his/her insurance policies. Also, put titles of property and automobiles into the appropriate person s name. Since laws governing these procedures vary from state to state, a pilot can check with the local motor vehicle department or his/her attorney for more information. CANCEL WHAT IS NO LONGER NEEDED Invariably, there will be products and services that were used by the deceased but are no longer wanted or needed. All charge accounts, credit cards, subscriptions and memberships should be reviewed and the appropriate ones canceled. If the pilot has medical insurance, he/she will want to check on how to continue the insurance if it is still needed by the survivor(s). Make certain that if others are covered by the same plan, they will still be covered by that plan or can get a new plan. SETTLING THE ESTATE To begin the estate settlement process, the deceased s will must be filed with the probate court. A will is the legal document in which you, the pilot, state who receives what portions of your property, as well as when and under what conditions they will receive it. A will also allows the pilot to designate a guardian for his/her children and an executor who will carry out the terms of the will. Most states require that the will be filed within a certain number of days (usually 30 or less) of the deceased s death. If no will is left, the probate court will need to be notified. The executor of the estate has a number of responsibilities he or she must attend to before actually applying for probate. Detailed attention to the checklists included in this booklet will go far toward allowing a pilot s executor to: Prepare a financial statement listing the complete assets and liabilities of the estate. This means determining the value of every asset that is part of the estate, as well as the liabilities. Contact beneficiaries and creditors. This simply refers to the beneficiaries named in the will. It also means the executor must be extremely diligent when contacting creditors, because if a creditor has a claim against the estate but is not notified, the beneficiaries may be able to hold the executor personally liable for any successful claim. The executor should consider all means necessary to notify creditors in order to protect the estate from this situation. Safeguard all the property. The probate process can take longer than expected, sometimes up to 24 months. Therefore, it may be advisable to store the deceased s valuables until distribution can be afforded. This might even mean insuring the property if it is not already insured. It might mean only needing to contact the existing carrier to add the executor to the terms of the contract. Apply for probate and file with the court. Upon approval of the probate application, the executor should transfer legal title and ownership of all property into his or her name. The next step is for the executor to begin to pay all debts, transfer legal title to the beneficiaries, or sell property and distribute the proceeds. Also, if hospitalization prior to death was involved, certain hospital, surgical and medical expense benefits may also be payable to the estate. Attachment H 16

120 PART III: FORMS TO HELP ORGANIZE INFORMATION FAMILY MEMBER INFORMATION Self Spouse Child Parent Grandchild Sibling Other (Relationship) Full Name Street Address City, State/Province, Postal Code Phone Number(s) Birth Date/Place Social Security # Other Information FAMILY MEMBER INFORMATION Self Spouse Child Parent Grandchild Sibling Other (Relationship) Full Name Street Address City, State/Province, Postal Code Phone Number(s) Birth Date/Place Social Security # Other Information FAMILY MEMBER INFORMATION Self Spouse Child Parent Grandchild Sibling Other (Relationship) Full Name Street Address City, State/Province, Postal Code Phone Number(s) Birth Date/Place Social Security # Other Information Attachment H 17

121 FAMILY MEMBER INFORMATION Self Spouse Child Parent Grandchild Sibling Other (Relationship) Full Name Street Address City, State/Province, Postal Code Phone Number(s) Birth Date/Place Social Security # Other Information FAMILY MEMBER INFORMATION Self Spouse Child Parent Grandchild Sibling Other (Relationship) Full Name Street Address City, State/Province, Postal Code Phone Number(s) Birth Date/Place Social Security # Other Information FAMILY MEMBER INFORMATION Self Spouse Child Parent Grandchild Sibling Other (Relationship) Full Name Street Address City, State/Province, Postal Code Phone Number(s) Birth Date/Place Social Security # Other Information Attachment H 18

122 FAMILY MARRIAGE INFORMATION Current Previous Family Member Name Spouse Name Marriage Date/Place Clergy Information Other Information FAMILY MARRIAGE INFORMATION Current Previous Family Member Name Spouse Name Marriage Date/Place Clergy Information Other Information FAMILY MARRIAGE INFORMATION Current Previous Family Member Name Spouse Name Marriage Date/Place Clergy Information Other Information FAMILY MARRIAGE INFORMATION Current Previous Family Member Name Spouse Name Marriage Date/Place Clergy Information Other Information Attachment H 19

123 FAMILY HEALTH INFORMATION FAMILY MEMBER NAME Health Problems, Date(s) Diagnosed, Course of Treatment, Medications Medical Provider Contact Information (Name/Number) Hospital Physician(s) Pharmacy Other Medical Plan YES Living Will or Advance Medical Directive Notes NO Living Will or Advance Medical Directive FAMILY MEMBER NAME Health Problems, Date(s) Diagnosed, Course of Treatment, Medications Medical Provider Contact Information (Name/Number) Hospital Physician(s) Pharmacy Other Medical Plan YES Living Will or Advance Medical Directive Notes NO Living Will or Advance Medical Directive Attachment H 20

124 FAMILY HEALTH INFORMATION FAMILY MEMBER NAME Health Problems, Date(s) Diagnosed, Course of Treatment, Medications Medical Provider Contact Information (Name/Number) Hospital Physician(s) Pharmacy Other Medical Plan YES Living Will or Advance Medical Directive Notes NO Living Will or Advance Medical Directive FAMILY MEMBER NAME Health Problems, Date(s) Diagnosed, Course of Treatment, Medications Medical Provider Contact Information (Name/Number) Hospital Physician(s) Pharmacy Other Medical Plan YES Living Will or Advance Medical Directive Notes NO Living Will or Advance Medical Directive Attachment H 21

125 VETERANS BENEFITS Veterans discharged under conditions other than dishonorable are entitled to burial in a national cemetery. A burial and funeral expense allowance may be paid for deceased veterans who were, at the time of death, entitled to receive pension or compensation. Claim for non-service-connected burial allowance must be filed within two years after burial or cremation. Dependent spouses and survivors may be entitled to additional benefits and should contact the nearest regional office of the Veterans Administration or call (877) 222-VETS (8387), or go to for information and to determine eligibility. To facilitate receiving veteran benefits have the following documents available when contacting the Veterans Administration Office: Discharge papers Pilot s service serial number or Social Security number Marriage license Children s birth certificates Death certificate Location of Veterans Administration Office Phone Number SOCIAL SECURITY Spouse and dependent children may be entitled to Social Security survivor benefit. Additionally, a lump-sum Social Security payment may be available when an eligible person dies. To facilitate receiving Social Security benefits, have the following documents available when contacting the Social Security office: Pilot s Social Security number Survivor s Social Security number Marriage license Children s birth certificates Pilot and spouse W-2 for last two years Proof of survivor s Age if 62 years or older Death certificate An application for the lump-sum death payments usually must be made within two years after the worker s death. Don t delay applying if all the documents are not yet available as alternate documentation may be acceptable to the Social Security office personnel. Contact the Social Security Administration at (800) or Location of Veterans Administration Office Phone Number Attachment H 22

126 LOCATIONS OF FAMILY DOCUMENTS DOCUMENT LOCATION Birth Certificates Marriage Certificates Baptismal Records Adoption Records Citizenship Papers Divorce Papers Passports Military Records Medical Records Living Will Advance Medical Directive Educational Diplomas & Certificates Organization Membership Cards Pet Veterinarian Records Other Other Other Other Attachment H 23

127 ORGANIZATION Name of Member NAME OF ORGANIZATION Address Phone Number Membership Number Date of Membership Dues Paid Through Benefits Due Other Information Name of Member NAME OF ORGANIZATION Address Phone Number Membership Number Date of Membership Dues Paid Through Benefits Due Other Information Name of Member NAME OF ORGANIZATION Address Phone Number Membership Number Date of Membership Dues Paid Through Benefits Due Other Information Attachment H 24

128 REAL ESTATE Primary Residence Vacation Home Land Investment/Commercial Other (Type) Name of Property Address Phone Numbers County/Township Plat/Block/Lot/Etc. Owned Owned Jointly Rented Mortgaged Fully Paid For Date of Purchase Rental Period Real Estate Tax Due on Mortgage Held By Rented From or To Insured By/With Maintenance Details Improvement Details Other Information Attachment H 25

129 REAL ESTATE (CONTINUED) Primary Residence Vacation Home Land Investment/Commercial Other (Type) Name of Property Address Phone Numbers County/Township Plat/Block/Lot/Etc. Owned Owned Jointly Rented Mortgaged Fully Paid For Date of Purchase Rental Period Real Estate Tax Due on Mortgage Held By Rented From or To Insured By/With Maintenance Details Improvement Details Other Information Attachment H 26

130 REAL ESTATE (CONTINUED) Primary Residence Vacation Home Land Investment/Commercial Other (Type) Name of Property Address Phone Numbers County/Township Plat/Block/Lot/Etc. Owned Owned Jointly Rented Mortgaged Fully Paid For Date of Purchase Rental Period Real Estate Tax Due on Mortgage Held By Rented From or To Insured By/With Maintenance Details Improvement Details Other Information Attachment H 27

131 VEHICLES Owned Leased Loan or Lease Payments Due Fully Paid For Make, Model, Year Vehicle Identification No. License Plate Number Registration Number Purchase/Lease Date Purchase/Lease Price Payments Due to Insured By/With Maintenance Details Other Information VEHICLES Owned Leased Loan or Lease Payments Due Fully Paid For Make, Model, Year Vehicle Identification No. License Plate Number Registration Number Purchase/Lease Date Purchase/Lease Price Payments Due to Insured By/With Maintenance Details Other Information Attachment H 28

132 VEHICLES (CONTINUED) Owned Leased Loan or Lease Payments Due Fully Paid For Make, Model, Year Vehicle Identification No. License Plate Number Registration Number Purchase/Lease Date Purchase/Lease Price Payments Due to Insured By/With Maintenance Details Other Information VEHICLES Owned Leased Loan or Lease Payments Due Fully Paid For Make, Model, Year Vehicle Identification No. License Plate Number Registration Number Purchase/Lease Date Purchase/Lease Price Payments Due to Insured By/With Maintenance Details Other Information Attachment H 29

133 LOCATIONS OF REAL ESTATE/VEHICLE DOCUMENTS DOCUMENT LOCATION Mortgage/Rental Papers Real Estate Tax Papers Deeds Land Contracts Records of Property Purchase Records of Property Sale Rental Records Commercial Property Records House Keys Vacation Home Keys Other Property Keys Access Codes for Alarms, etc. Home/Other Real Estate Insurance Vehicle Registration Vehicle Titles Vehicle Loan/Lease Papers Vehicle Insurance Policies Vehicle Keys Other Attachment H 30

134 LOCATIONS OF FINANCIAL DOCUMENTS DOCUMENT LOCATION Tax Returns and Supporting Documents, Prior Three Years Life Insurance Policies Medical Insurance Policies Home Owner Insurance Vehicle Insurance Other Insurance Policies Checking Account Statements and Unused Checks Saving Account Statements Money Market Statements Certificate of Deposit Statements Mutual Fund Statements 401(k) Plan Statements Retirement Plan Information Stock and Bond Certificates IRA Statements Credit Cards Social Security Statements Military DD-214 Other Attachment H 31

135 INSURANCE POLICY POLICY TYPE Life Medical Dental Disability Long-Term Care Homeowners Vehicle Umbrella Other (Type) Name(s) of Insured Face Amount (if applicable) $ Cash Value (if applicable) $ Premium Amount/Due Date Policy/Group Number Company Address Phone Number Agent s Name Address Phone Number Beneficiary Information Notes Attachment H 32

136 INSURANCE POLICY (CONTINUED) POLICY TYPE Life Medical Dental Disability Long-Term Care Homeowners Vehicle Umbrella Other (Type) Name(s) of Insured Face Amount (if applicable) $ Cash Value (if applicable) $ Premium Amount/Due Date Policy/Group Number Company Address Phone Number Agent s Name Address Phone Number Beneficiary Information Notes Attachment H 33

137 FINANCIAL ACCOUNT ACCOUNT TYPE Checking Savings IRA D401(k) Stock/Bond Credit Card Mortgage Commercial Lease Safety Deposit Box Other (Type) Name of Account Account Number Owners/Authorized Persons Account Balance/As of Date Payment Amount/Due Date Company Address Phone Number Agent/Broker Name Address Phone Number Beneficiary Information Account or Security Location Other Information Attachment H 34

138 FINANCIAL ACCOUNT (CONTINUED) ACCOUNT TYPE Checking Savings IRA D401(k) Stock/Bond Credit Card Mortgage Commercial Lease Safety Deposit Box Other (Type) Name of Account Account Number Owners/Authorized Persons Account Balance/As of Date Payment Amount/Due Date Company Address Phone Number Agent/Broker Name Address Phone Number Beneficiary Information Account or Security Location Other Information Attachment H 35

139 FINANCIAL ACCOUNT (CONTINUED) ACCOUNT TYPE Checking Savings IRA D401(k) Stock/Bond Credit Card Mortgage Commercial Lease Safety Deposit Box Other (Type) Name of Account Account Number Owners/Authorized Persons Account Balance/As of Date Payment Amount/Due Date Company Address Phone Number Agent/Broker Name Address Phone Number Beneficiary Information Account or Security Location Other Information Attachment H 36

140 SPECIAL INSTRUCTIONS AND INFORMATION This page is provided for additional information or special instructions. Use this page to keep this guide current. Remember to date and sign these entries to avoid possible confusion later. Special Instructions and Information Date Signature Special Instructions and Information Date Signature Attachment H 37

141 SPECIAL INSTRUCTIONS AND INFORMATION (CONTINUED) Special Instructions and Information Date Signature Special Instructions and Information Date Signature Attachment H 38

142 SPECIAL INSTRUCTIONS AND INFORMATION (CONTINUED) Special Instructions and Information Date Signature Special Instructions and Information Date Signature Attachment H 39

143 Air Line Pilots Association, Int l (ALPA) 9550 West Higgins Road, Suite 1000 Rosemont, IL