Clarification on Retiree Medical

With respect to the question below, I just want to make sure everyone is clear that if a TWU represented employees enrolls in retiree medical prior to 11/1/2012, they will be in the prefunding retiree medical plan, which means they will not automatically get the employee contributions or the company match, since that will be subject to the outcome of the 1114 process.

The following is what is on jetnet and is accurate, however, it may be best to further emphasize that date in which an employee enrolls in retiree medical is the determining factor as to whether you are subject to the 1114 process outcome or not.

If I take the Early-Out and then retire, do I get my prefunding refunded or do I go into the retiree medical and go under the 1114 process?

That depends on the point in time that the employee retires. Following 9/12/12, there will be an implementation period before the changes to retiree medical can be implemented. An employee retiring after the effective date of the change (11/1/12) will be under the new arrangement and will get a refund of prefunding contributions. An employee who retires before the date of the change (11/1/12) will be under the current plan and subject to the changes through the 1114 process. Depending on the outcome of the 1114, that employee may also receive a refund of prefunding contributions, but that is unknown at this time.

Added July 30 If I take the Early Out will the severance pay be at the new pay scale rate?

Yes.

Added September 13 If I take the Early out – prior to the Judge ruling on the 1114 process, am I still going to receive the company match portion of my prefunding?

If the employee leaves the company, on or after November 1, 2012, which is the effective date of the new retiree medical changes outlined in the ratified agreements, the chart below outlines the scenarios in which the company’sprefunding contribution could potentially be refunded, after the 1114 process has successfully been completed.