SUMMARY PLAN DESCRIPTION FOR THE EXPRESSJET AIRLINES, INC. LONG TERM DISABILITY PROGRAM FOR PILOTS

Transcription

1 SUMMARY PLAN DESCRIPTION FOR THE EXPRESSJET AIRLINES, INC. LONG TERM DISABILITY PROGRAM FOR PILOTS While this Summary Plan Description summarizes the major provisions of the ExpressJet Airlines, Inc. Long Term Disability Program for Pilots (the LTD Plan ), it does not provide you with every LTD Plan detail. The formal LTD Plan documents, which govern the LTD Plan, provide full details. If there are any discrepancies between this Summary Plan Description and the LTD Plan documents, the LTD Plan documents control. Updated January 2014

2 Table of Contents Long Term Disability Program... 1 Participation... 1 Enrollment for Coverage... 1 Cost of Coverage... 1 Terms You Need to Know... 1 Proof of Good Health... 2 When Coverage Begins... 2 When Coverage Ends... 2 Your LTD Plan Benefits... 3 Maximum Benefits... 3 Coordination and Reduction of Benefits... 3 How Long LTD Benefits are Paid... 4 Maximum Duration of LTD Benefits... 4 When Benefit Payments End Early... 5 Exclusions and Limitations... 5 Pre-Existing Conditions... 6 Temporary Recovery... 6 How to File a Claim... 6 Claims Assistance... 7 Retroactive Reinstatement... 7 Recovery of Overpayments or Erroneous Payments... 7 Claims Procedures under the Long Term Disability Program for Pilots... 7 Administrative Information Future of the Plan Your Rights under ERISA Receive Information about Your Benefits Prudent Actions by Plan Fiduciaries Enforce Your Rights Assistance with Your Questions No Employment Guarantee About this Summary This document is the summary plan description (the Summary ) for the ExpressJet Airlines, Inc. Long Term Disability Program for Pilots (the LTD Plan ). No benefits will be provided based on the terms of this Summary, unless such benefits are provided for under the terms of the LTD Plan. If you have questions about the LTD Plan or would like a complete copy of the LTD Plan document, contact ExpressJet Benefits at benefits@expressjet.com or Important Notice The information in this Summary is based on the ExpressJet Airlines, Inc. Long Term Disability Program for Pilots in effect as of January 1, The official LTD Plan document contains the full LTD Plan details. If this Summary or any oral representation regarding the LTD Plan differs from the LTD Plan document, the LTD Plan document prevails. The official LTD Plan document contains the full LTD Plan details. Updated January 2014

3 Long Term Disability Program The ExpressJet Airlines, Inc. Long Term Disability Program for Pilots (the LTD Plan ) provides benefits to certain ExpressJet Airlines pilots who become unable to work due to their disability, as defined by the LTD Plan document. Those benefits are coordinated with some other sources of income and provide a part of a disabled LTD Plan participant s pay while he or she is unable to work. Participation Eligibility to participate in the Plan and benefits under the Plan are limited to certain persons who ExpressJet Airlines, Inc. (the Company ) employs as pilots. Generally, only those Company pilots who are not Legacy Atlantic Southeast Pilots are eligible for coverage under the LTD Plan. Legacy Atlantic Southeast Pilots and other non-pilot employees of the Company are not covered by the LTD Plan. If you are an eligible Company pilot, you will become a participant in the LTD Plan on the first day of the month after you complete 30 days of service as a Company pilot, unless you affirmatively elect not to participate in the LTD Plan, or to defer your participation, as described below. Enrollment for Coverage If you are eligible to participate in the LTD Plan, you are automatically enrolled effective on the first day of the month after you have completed the required one month of Company service as an eligible pilot. You may elect not to participate in the LTD Plan within 30 days after you become eligible to participate by contacting ExpressJet Benefits at benefits@expressjet.com or (see the Administrative Information section of this Summary). If you elect not to participate when you are first eligible, you may elect to participate as of the first day of any later month. However, proof of good health and approval from the LTD Plan s Administrative Committee are required for late enrollment. Cost of Coverage You and the Company share the cost of your LTD Plan coverage. Your contributions are deducted from your pay on an after-tax basis. Contributions made by the Company, on your behalf, are included in your taxable income for the year in which those contributions are made. As a result, you do not pay income taxes on any benefits you receive from the LTD Plan. In addition, you do not pay contributions while you are receiving payments from the LTD Plan. Terms You Need to Know Actively at Work You are performing, in the customary manner, all of the regular duties of your employment with the company. If you are using paid sick time, you are not considered to be actively at work. Administrative Committee the ExpressJet Airlines, Inc. Benefits Administrative Committee appointed by the Company to make administrative decisions and coverage- and benefit-related determinations under the LTD Plan. Legacy Atlantic Southeast Pilot Company pilots who were employed by Atlantic Southeast Airlines, Inc. ( ASA ) immediately prior to the Company s merger with ASA in December 2011, or hired by the Company s ASA division after the merger, and who the Company has continued to classify as employees of its ASA division for employee benefit plan purposes after the merger. Company ExpressJet Airlines, Inc. and respective legal predecessors and successors. Company Pilot An employee who has completed at least one hour of company service as a pilot for Continental Airlines, Inc. on or after October 1, 1997, or one who has completed at least one hour of 1

4 company service for ExpressJet Airlines, Inc. as a pilot on or after December 14, 1998, excluding in either case any Legacy Atlantic Southeast Pilot. Company Service For a Company Pilot Any period in which you are paid or are entitled to be paid by the Company (including a predecessor, successor or an employer within the same controlled group). In addition: If you have active periods of employment with Rocky Mountain Airways, Inc., Britt Airways, Inc., and Bar Harbor Airways, Inc., this employment will be treated as company service for purposes of determining the pilot s loss of license disability benefits. If you were employed by Frontier Airlines, Inc., your company service is deemed to begin as of your applicable longevity date for purposes of determining the pilot s loss of license disability benefits. In this case, longevity date means the date assigned to you as a former Frontier pilot for computing seniority with the Company. If you were employed by New York Airlines, Inc. or People Express Airlines, Inc., immediately prior to employment with the company, with no break in service between jobs, your company service is calculated from the date of hire by the previous organization, excluding a period of furlough or leave of absence. Pilot A regular, active full-time or part-time employee of the Company who is listed on the Company s pilots system seniority list. Psychological/Cognitive Disorder Any disease or disorder manifested by psychological impairment, but excluding any such disease or disorder arising from a physical or organic cause. The Administrative Committee has full discretion to determine whether a claim under the program is based on a Psychological/Cognitive Disorder. Proof of Good Health You must provide proof of good health before coverage may begin if you: Elect coverage after the time you are first eligible or Resume coverage after you voluntarily ended coverage during the time you are eligible. A proof of good health form can be obtained from ExpressJet Benefits (See the Administrative Information section of the Summary). When Coverage Begins As a newly hired Company Pilot who is automatically enrolled, coverage begins on the first day of the month after you have completed 30 days of service as a Company Pilot. Otherwise, if you are eligible your coverage generally begins on the first day of the month following the date the Administrative Committee receives your election to participate and coverage is approved. When Coverage Ends Your coverage under the LTD Plan ends on the earliest of: The date of your death. The date your employment with the Company terminates. 2

5 The date you are no longer on the Company s pilots system seniority list. The first date for which your LTD Plan contributions are not made. The later of: The date you cease to be a pilot, or The 181st day you are on an approved leave of absence due to injury, sickness, or service or duty in the U.S. armed forces (including the U.S. Reserve Components and the National Guard). You must make required contributions immediately before your period of absence and continue to make them during your absence for coverage to continue. The date the LTD Plan ends. Your LTD Plan Benefits The LTD Plan provides a monthly income benefit if you are a Company Pilot and experience one of the types of disabilities covered by the plan. The term disability for purposes of the plan has two definitions. If you first become disabled on or after December 14, 1998 and you are a Company Pilot at the time of the disability, you are considered disabled if: (1) You lost your Federal Aviation Administration (FAA) Medical Certificate for reasons other than alcoholism or drug abuse, or (2) You failed to pass a Company physical examination due to medical reasons other than alcoholism or drug abuse. If you become disabled while you are a Company Pilot, the LTD Plan benefit payable to you each month is your compensation divided by 12 and multiplied by 55%. This benefit will be offset as described in the Coordination and Reduction of Benefits section of this Summary. Your net benefit payable after all the offsets may not exceed $90,000 a year. Your disability date is the date you lose your FAA Medical Certificate or the date you complete a Company physical exam that you do not pass, whichever applies. Your compensation for this purpose means 1,026 times the hourly rate you are earning for flight hours as of your disability date. Maximum Benefits Your LTD Plan benefit will be reduced each month, as necessary, to satisfy the $90,000 annual maximum benefit limit described previously. Coordination and Reduction of Benefits Your disability benefit in any month will be reduced by the amount of payments shown below that are paid or payable to you for that month: Workers compensation benefits, occupational injury or disease benefits, or any other benefits resulting from legislation or similar purpose including federal veteran s benefits. 3

6 Disability benefits under state law or similar government legislation provided that if these benefits are includable in your taxable income for federal or state income tax purposes, the offset will be reduced by the amount of the additional income taxes due to these benefits. If you want to have the offset reduced by the amount of additional taxes you must provide acceptable evidence of the amount of the additional taxes. If you do not provide the information necessary for a precise calculation, the offset will not be reduced. Disability benefits under any Company-sponsored plan (including, but not limited to, any plan sponsored by SkyWest, Inc.) other than this one. Federal Social Security or any similar statutory benefits based on your payroll taxes and wages whether paid or payable to you, your spouse or children. Subsequent changes to the initial Social Security benefit entitlements will not affect the benefit payable unless such changes are the result of a change in dependent status or an error in the determination of the Social Security benefit. Sick pay and vacation pay paid to you by the Company or any subsidiary or affiliate of the Company that adopts the plan. Any compensation paid directly or indirectly to you by the Company (or any subsidiary or affiliate of the Company that adopts the plan) or SkyWest, Inc., and any compensation paid directly or indirectly to you by a temporary services or other similar agency with respect to services rendered by you to any such company. You are considered eligible to receive any of these benefits that are deemed applicable by the Administrative Committee. If necessary, the Administrative Committee has the right to estimate the amounts of these benefits prior to written confirmation of such amounts. How Long LTD Benefits Are Paid Disability benefits are effective as of the first day of the month following your disability date. If you incurred a disability prior to May 1, 2006, then your monthly disability benefit will be paid on the first day of each calendar month for which benefits are payable. If you incurred a disability on or after May 1, 2006, then your monthly disability benefit will be paid on the last day of each calendar month for which benefits are payable. Interest is not paid for retroactive payments unless your payments have been delayed for more than 60 days following receipt by the Administrative Committee of your properly completed claim for benefits (in which case interest will be paid at the rate of 6% per annum, compounded annually). If your disability ends during a month, your benefits will be prorated on a daily basis for the days you are disabled. Maximum Duration of LTD Benefits If you become disabled on or after December 14, 1998, and you are a Company Pilot at the time of disability: Benefits continue until the time when you may no longer serve as a pilot in passenger service as a matter of law for reasons other than your medical condition (e.g., until age 65 or you lose the privilege to exercise your license or a non-medical reason). Notwithstanding the above, if your disability is based on a Psychological/Cognitive Disorder that is incurred on or after January 1, 2006, then the maximum duration of benefits is 24 months (whether or not such months are consecutive and whether such benefits relate to one or more separate disabilities). 4

7 When Benefit Payments End Early Regardless of the information presented previously, your rights to continuing LTD Plan benefits and the payment of those benefits will end on the earliest of these dates: The date of your death. The date you receive any payment under the Continental Retirement Plan, the Texas International Airlines, Inc. Fixed Pension Plan for Pilots, the Continental Airlines Fixed Pension Plan for Pilots, the Retirement Income Plan, the Continental Pilots Retirement Plan (effective as of April 30, 2005) or any other plan under which you might be eligible to receive retirement benefits (as amended and including any successor plans). The date you are no longer disabled. The date you re-obtain your pilot s license, The date you fail to submit proof of your continued disability or undergo reasonable examinations or medical treatment. The date you are notified that you have passed an FAA medical examination if you had previously lost your FAA Medical Certificate. The date you pass a Company physical examination if you had previously failed to pass such an examination. Exclusions and Limitations The LTD Plan does not cover any disability or pay a disability benefit with respect to a disability: Incurred in connection with your committing a violent felonious crime. Attributable to alcohol or drug abuse. Attributable to a pre-existing condition, or medical or surgical treatment of a pre-existing condition, unless: (3) Your coverage has been in effect for at least 12 consecutive months and (4) You missed fewer than 60 days of work for any reason relating to the disabling condition during that 12-month period. If you have temporarily recovered from a condition for which you received payments under the LTD Plan, that condition is not considered a pre-existing condition. Attributable to crop dusting. For any period when you are not seen regularly and treated by a physician (to the extent required by the Administrative Committee.) For any period when you are confined for any reason in a penal or correctional institution including a halfway house. If you obtained your last FAA Medical Certificate by fraud or concealment. 5

8 In the event of a misrepresentation of any material information in your application for benefits. Following your disappearance. Resulting from, caused by or contributed to by (i) an intentionally self-inflicted injury or (ii) a voluntarily accepted medical condition or elective treatment or procedure (including, without limitation, cosmetic surgery or treatment primarily to change appearance, sex-change surgery, reversal of sterilization, liposuction, visual correction surgery, and treatments relating to infertility (such as in vitro fertilization, but a pregnancy resulting from any such treatment may give rise to a disability that will not be subject to this limitation)). All decisions concerning exclusions and limitations under the plan shall be at the sole discretion of the Administrative Committee. Pre-Existing Conditions A pre-existing condition means all mental or physical conditions concerning which you (a) had knowledge, (b) consulted a physician or (c) received medical treatment or services, including prescription medication, during the 90 days before your coverage under the LTD Plan becomes effective. Temporary Recovery If you have one or more periods of temporary recovery after disability benefits become payable, any two periods of disability from the same cause(s) will be added together and treated as one period of continuous disability if they are separated by a period of recovery of less than the initial period of disability. Except as previously described, your earnings used to compute the benefit will not change, and the duration of disability benefits will be the balance of the duration period remained unused before the period of recovery. How to File a Claim You must file a claim with the Administrative Committee on the proper form, available from ExpressJet Benefits (see the Administrative Information section of this Summary for more information), to receive LTD Plan benefits. You must provide pertinent information and documentary evidence as may be required by the Administrative Committee. The claim must be filed with written proof of loss no later than March 31 of the calendar year following the calendar year in which you incurred your disability. Failure to timely file your claim in writing will result in denial of benefits. You may be required to submit proof that you have incurred a disability or continue to be disabled to the Administrative Committee. This proof includes: Evidence of a surrendered FAA medical license. The results of any medical, physical or other examination(s) required by the Administrative Committee or any company. Evidence of and results of your application for other disability benefits. You must submit such required proof as frequently as required by the Administrative Committee to prove continued disability. During the time you are receiving benefits under the LTD Plan, you are expected to make every reasonable effort to correct the mental or physical condition that led or contributed to your disability. The Administrative Committee may also request that you undergo reasonable medical treatment that might 6

9 enable you to avoid, rehabilitate, correct or cure your disability. If you fail, as determined by the Administrative Committee, to submit proof of continued disability or to undergo reasonable examination or medical treatment as described previously, your claim may be void and the right to and the payment of any benefits under the plan which would otherwise be payable to you will cease. Claims Assistance For assistance with questions or problems concerning benefits under the LTD Plan, contact ExpressJet Benefits (see the Administrative Information section of this Summary for more information) or Harvey Watt and Company, the LTD Plan s claims administrator (see the Administrative Information section of this booklet). You must follow and exhaust the claims procedures before taking action in any other forum regarding a claim for LTD Plan benefits under the LTD Plan. The LTD Plan claims procedures appear below. Your failure to timely follow the LTD Plan claims procedures will bear your right to recover LTD Plan benefits. Additionally, you must bring suit or legal action no later than one year following a final adverse decision under the LTD Plan claims procedures on your claim for benefits. Retroactive Reinstatement If you receive loss of license disability benefits because of FAA suspension and then are retroactively reinstated at partial or full pay for the suspension period, you must repay the plan the full amount of disability benefits you received for that period of disability. This repayment must be made within 30 days following receipt of the partial or full pay. Recovery of Overpayments or Erroneous Payments If the Plan makes an overpayment or erroneous payment of a benefit, you must return the excess or erroneous amount to the plan. You may pay the amount in a lump sum or your future payments may be reduced to recover the amount, in the time and manner and with the interest rate determined by the Administrative Committee. Claims Procedures under the Long Term Disability Program for Pilots The LTD Plan includes a procedure for administering benefit claims and appeals of benefit claims which have been denied in whole or in part. You or your beneficiary may obtain, without charge, a copy of the LTD Plan s claims procedure from the Administrative Committee by contacting Harvey Watt & Co. at , ext The following paragraphs briefly summarize the LTD Plan s claims procedures. In order to file a claim for benefits under the LTD Plan, you must file with the plan s Claims Administrator (which is currently Harvey Watt & Co.) a written claim for benefits with written proof of your loss. The claim must be filed no later than March 31 of the calendar year following the calendar year in which you incurred your disability. In connection with the submission of a claim, you may examine the LTD Plan and any other relevant documents relating to your claim, and you may submit written comments relating to such claim to the Claims Administrator. Failure to furnish a written claim description or to otherwise comply with the claim submission procedure will invalidate your claim unless the Review Committee (which is a subcommittee of the Administrative Committee for the LTD Plan) determines that it was not reasonably possible for you to comply with such procedure. You must furnish such pertinent information as the Review Committee may request, together with such documentary evidence as may be requested by the Review Committee. Upon your filing of a claim for benefits, the Claims Administrator will refer your claim to the Review Committee for review and determination. You will be permitted to examine any relevant document relating to your claim and submit written comments or other information to the Review Committee to supplement your claim. Within 30 days from the date you filed your claim (or such longer period as may be necessary 7

10 due to unusual circumstances or to enable you to submit written comments - but in any event no longer than the time period described in the next paragraph), the Review Committee will make a decision as to whether your claim is to be approved, modified or denied. If the Review Committee approves your claim, the Claims Administrator will process your claim as soon as administratively practicable. In the event of an Adverse Benefit Determination (which includes a denial or modification of your claim, or an invalidation for failing to follow the LTD Plan s claim submission procedures), you will be notified in writing not later than 45 days following the date you filed your claim. This period may be extended by the Review Committee for up to 30 days, provided that the Review Committee both determines that such an extension is necessary due to matters beyond control of the LTD Plan and notifies you, prior to the end of the initial 45-day period, of the circumstances requiring the extension and the date by which the Review Committee expects to render a decision. If, prior to the end of the first 30-day extension period, the Review Committee determines that, due to matters beyond its control, a decision cannot be made within that extension period, then the period for making the determination may be extended for up to an additional 30 days. You will be notified of any such additional extension before the end of the first 30-day extension period. In any case of an Adverse Benefit Determination by the Review Committee, you will receive a written notice from the Review Committee that will include: The specific reason or reasons for the Adverse Benefit Determination; The provisions of the LTD Plan upon which the Adverse Benefit Determination is based; If an internal rule, guideline, protocol or other similar criterion was relied upon in making the Adverse Benefit Determination, you will either receive a description of such criterion or be informed that such criterion was relied upon and that you may obtain a copy of the criterion free of charge upon request; If the Adverse Benefit Determination is based on a medical necessity, experimental treatment or similar exclusion or limit, you will either receive an explanation of the scientific or clinical judgment for the determination, applying the terms of the LTD Plan to your medical circumstances, or be informed that such explanation will be provided free of charge to you upon request; A description of any additional material or information necessary to perfect your claim and the reasons why such material or information is necessary; and A description of the LTD Plan s claims review procedures, and time limits applicable to such procedures, including a statement of your right to bring a civil action under section 502(a) of the Employee Retirement Income Security Act of 1974, as amended ( ERISA ), following an Adverse Benefit Determination on review. Within 180 days following receipt of an Adverse Benefit Determination by the Review Committee, you may submit a written request to the Appeals Committee (which is a separate subcommittee of the Administrative Committee) for review of such determination. During this review process, you will have the opportunity to submit written comments and other information relating to your claim and you will have reasonable access to, and copies of, all documents and other information related to your claim free of charge. Any items you submit to the Appeals Committee will be considered without regard to whether such items were considered in the initial benefit determination. The review by the Appeals Committee of an Adverse Benefit Determination will not give deference to the original decision by the Review Committee. If the initial benefit determination was based in whole or in part on a medical judgment, including determinations with regard to whether a particular treatment, drug or other item is experimental, investigational or not medically necessary or appropriate, the Appeals Committee will consult with a health care professional who has appropriate training and experience in the applicable field of medicine who was 8

11 not consulted, and is not the subordinate of someone who was consulted, during the initial benefit determination. You will also have the right to request the names of the medical or vocational experts whose advice was obtained in connection with the Adverse Benefit Determination. The decision on review by the Appeals Committee will be binding and conclusive and you will not be required or permitted to pursue further appeals to the Administrative Committee. Within 45 days following your request for review (or within 90 days under special circumstances, in which case you will receive written notice of the extension and the circumstances requiring the extension prior to its commencement), the Appeals Committee must, after a full and fair review, render its final decision in writing (or electronically) to you. However, the review process may be delayed if you fail to provide information that is requested by the Appeals Committee. If the Appeals Committee approves your claim on review, then the Claims Administrator will process your claim as soon as administratively practicable thereafter. In the event of an Adverse Benefit Determination on review, the Appeal Committee s final decision will include: The specific reason or reasons for the Adverse Benefit Determination; The provisions of the LTD Plan upon which the Adverse Benefit Determination is based; A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents and other information related to your claim; If an internal rule, guideline, protocol or other similar criterion was relied upon in making the Adverse Benefit Determination, you will either receive a description of such criterion or be informed that such criterion was relied upon and that you may obtain a copy of the criterion free of charge upon request; If the Adverse Benefit Determination is based on a medical necessity, experimental treatment or similar exclusion or limit, you will either receive an explanation of the scientific or clinical judgment for the determination, applying the terms of the LTD Plan to your medical circumstances, or be informed that such explanation will be provided free of charge to you upon request; A description of your right to bring an action under section 502(a) of ERISA with respect to the Adverse Benefit Determination; and The following statement: You and your plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact your local U.S. Department of Labor Office and your State insurance regulatory agency. Completion of the LTD Plan s claims procedures is a condition precedent to the commencement of any legal or equitable action in connection with a claim for benefits under the LTD Plan. Any suit or legal actions that you initiate for benefits under the LTD Plan must be brought no later than one year following a final decision on your claim for benefits. The one year statute of limitations on suits for benefits will apply in any forum where you initiate such a suit. You may, by submitting a written statement to the Administrative Committee, authorize an individual or entity to pursue your claim for benefits under the LTD Plan and/or your request for a review of an Adverse Benefit Determination made with respect to your claim. 9

12 Administrative Information Plan Identification: Plan Name: ExpressJet Airlines, Inc. Long Term Disability Program for Pilots. Plan Number: 507 Employer Identification Number: Plan Year: January 1 December 31 Plan Sponsor: ExpressJet Airlines, Inc. 100 Hartsfield Center Parkway Suite 700 Atlanta, Georgia Attn: Benefits Administrative Committee Plan Administrator: ExpressJet Airlines, Inc., acting through its Benefits Administrative Committee c/o ExpressJet Airlines, Inc. 100 Hartsfield Center Parkway Suite 700 Atlanta, Georgia Attn: Benefits Administrative Committee As the Plan Administrator, the Company, acting through the Administrative Committee is responsible for formulating and carrying out all rules and regulations necessary to administer the LTD Plan and has the sole discretionary authority to make all factual and other determinations and decisions regarding eligibility and benefits of employees and participants in and under the LTD Plan. The Company has delegated to the Administrative Committee the discretionary authority to make factual decisions regarding the interpretation or application of LTD Plan provisions, and the discretionary authority to determine all questions, including factual determinations, as to the rights and benefits of employees and participants under the LTD Plan. Benefits under the LTD Plan will be paid only if the Administrative Committee decides in its discretion that the claimant is entitled to them. Any decision made by the Company, the Administrative Committee or a claims administrator in good faith is final and binding on all persons. Further Information Regarding the LTD Plan: For further information reading the LTD Plan, contact ExpressJet Benefits at benefits@expressjet.com or

13 Plan Trustee: The Plan trustee is: Schwab Corporate Services Defined Benefit Services Department 4150 Kinross Lake Parkway P.O. Box 407 Richfield, Ohio Agent for Service of Legal Process: The Plan Administrator is the agent for legal process against the LTD Plan. Legal process may also be served upon the Plan trustee. Type of Funding: ExpressJet Airlines Disability Trust (VEBA) Schwab Corporate Services Defined Benefit Services Department 4150 Kinross Lake Parkway P.O. Box 407 Richfield, Ohio Source of Funding: Company and employee contributions Claims Administrator: Harvey Watt and Company P.O. Box Atlanta, Georgia Future of the Plan The Company reserves the right to amend or terminate the LTD Plan at its discretion at any time for any reason. Any amounts payable under the terms of the LTD Plan as of the date of such amendment or termination will be paid in accordance with those terms. Your Rights Under ERISA As a participant in the LTD Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants are entitled to: Receive Information About Your Benefits Examine, without charge, at the Plan Administrator s office and at other specified locations, such as worksites, all documents governing the LTD Plan, including insurance contracts, and a copy of the latest annual report (Form 5500 series) filed by the plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. Obtain, upon, written request to the plan administrator, copies of documents governing the operation of the LTD Plan, including insurance contracts, and copies of the latest annual report (Form 5500 Series) and 11

14 updated summary plan descriptions. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the LTD Plan s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of that summary annual report. Prudent Actions by Plan Fiduciaries In addition to creating rights for plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate the LTD Plan, called fiduciaries of the plan, have a duty to do so prudently and in the interest of you and other LTD Plan participants and beneficiaries. When you are enrolled in the LTD Plan, the Administrative Committee makes benefit determinations under the LTD Plan. Because it has control over benefit determinations, the Administrative Committee is acting as a fiduciary when you request review of the benefit determination under the LTD Plan s claims procedures. Additionally, the Company is a fiduciary of the LTD Plan by virtue of its discretionary authority over investments of the LTD Plan s trust fund. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the plan administrator to provide all the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator or insurance company. If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court after you have exhausted the LTD Plan s claims procedure as described in this summary plan description. If it should happen that plan fiduciaries misuse the plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance with Your Questions If you have any questions about the LTD Plan, you should contact ExpressJet Benefits first. If ExpressJet Benefits is not able to answer your question, you should contact the Plan Administrator. If you have questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the insurance company or the plan administrator, you should contact the nearest area office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. No Employment Guarantee This document does not create a contract of employment between the Company (or any of its affiliates) and any employee. Being a participant in the LTD Plan does not grant any current or future employment rights. And, LTD Plan participation is not a condition of employment. 12