Section 29 - Benefits

29.F.3.d.(1).    

The required contribution for each month of coverage under the Traditional Medical PPO is equal to the applicable percentage of the total projected cost of the Traditional Medical PPO, for such calendar year, for the coverage elected. There is no limit on the increases to the monthly contribution, although co-payments for the mail order drugs are limited as provided for active Flight Attendants.

29.F.3.e. MONTHLY CONTRIBUTION FOR PRE-MEDICARE SELECT REGIONAL MEDICAL PLANS, CORE MEDICAL PPO, AND CORE MEDICAL EPO 

The contribution of each month of coverage under a Select Regional Medical Plan, the Core Medical PPO, or the Core Medical EPO is equal to the total monthly cost of such plan minus the amount of the Company’s contribution that would apply for such coverage tier for such month of coverage under the Traditional Medical PPO. 

29.F.3.f. POST MEDICARE RETIREE MEDICAL BENEFITS

When first eligible, and during any subsequent Annual Enrollment Period, a retired Flight Attendant or survivor may elect from among one or more supplemental plans to Medicare offered by the Company. Coverage will not be offered again once coverage has been waived unless the Flight Attendant can show proof of Creditable Coverage or has ceased due to nonpayment of the required monthly contributions. 

29.F.3.g. MONTHLY CONTRIBUTION FOR POST-MEDICARE COVERAGE

Eligible individuals must pay a monthly contribution for the cost of Post-Medicare coverage. The monthly contribution is equal to the total projected cost of such post-Medicare coverage for the calendar year, per person, minus a Company contribution equal to $90 per month per person covered. 

29.F.3.h. VOLUNTARY SUSPENSION OF COVERAGE AND SUBSEQUENT RE- ENROLLMENT

 A retiree may suspend retiree medical benefits described in this Subsection F when they he or she first becomes eligible for coverage and during any Annual Enrollment Period if they have she/he has alternative medical coverage (other than Medicare). A retiree’s suspension of coverage shall also suspend coverage for their her/his Dependents. A retiree may re-enroll for coverage under this Paragraph F. during an Annual Enrollment Period or within forty-five (45) days following a qualifying status change provided the retiree submits to the Plan Administrator a certificate of creditable coverage establishing proof of continuous coverage under a group health plan, any Medigap plan or Medicare HMO/ Advantage Plan that includes medical and prescription drug coverage comparable to the Traditional Medical PPO, TRICARE, a qualified individual medical insurance policy eligible for the federal Health Coverage Tax Credit (“HCTC”), an individual policy under a state health insurance exchange, or non-US national health insurance during the period for which coverage under this Paragraph F. was suspended. 

29.F.3.i. FLIGHT ATTENDANT RETIREE MEDICAL PLAN BOARD

A Joint AFA Company Board will be established to monitor and address issues relative to the Flight Attendant pre- Medicare comprehensive medical plan and other Flight Attendant welfare benefit plans. The joint committee will be composed of two (2) members selected by the AFA and two (2) members selected by the Company. The Committee members will be the coordination point to their respective constituents. The above committee will have full access to all pertinent health and welfare data, including but not limited to updated reasonable and customary information, as available, names, telephone numbers, and addresses of retired Flight Attendants updated on a semi-annual basis, and experience data of existing benefits. This committee will be free to expand upon or memorialize their goals, structure and operating criteria.

29.F.4. SUBSIDIARY-CONTINENTAL, SUBSIDIARY-CMI, AND NEW HIRE FLIGHT ATTENDANTS

Subject to Paragraph F.2. above, any Flight Attendant who: was employed by Continental Airlines, Inc. or Continental Micronesia, Inc. and was covered by the subsidiary-Continental or subsidiary-CMI collective bargaining agreement immediately prior to August 28, 2016 the Effective Date of this Agreement; is newly hired on or after the Effective Date of this Agreement; or is an individual employed by the Company who becomes a Flight Attendant through an employment transfer on or after the Effective Date of this Agreement; will be eligible for retiree medical benefits in accordance with the terms of this provision. 

29.F.4.a. RETIREE BRIDGE MEDICAL

Each Flight Attendant who retires on or after the August 28, 2016 the Effective Date of this Agreement while enrolled in active medical coverage will be eligible to participate in the retiree bridge medical program providing for participation in any applicable medical plan available to active Flight Attendants, subject to the following rules:

29.F.4.a.(1).

At the time of retirement, the Flight Attendant must be at least age sixty (60) and less than age sixty-five (65). 

29.F.4.a.(2).

At the time of retirement, the retired Flight Attendant’s sick leave bank will enable the retiree to participate in the contributory funding aspect of the plan by using fourteen (14) hours of sick leave for each month of participation. Payment of the fourteen (14) hours of sick leave will be accepted as the retiree’s complete payment obligation for each such month of participation. 

29.F.4.a.(3).

If a retiree has insufficient sick leave remaining in their his or her bank to purchase continued participation in the plan for any period of time for which they are he or she is eligible and desires such coverage, the retiree may obtain coverage at the unsubsidized rate under the “Regular Retiree Medical” in Paragraph F.5. below. 

29.F.4.a.(4).

Coverage for the retiree terminates at age sixty-five (65). 

29.F.4.a.(5).

Spouse coverage will only be available if the Flight Attendant has an enrolled spouse on the date of retirement (spouses cannot later be added). Coverage will be available for any other Dependents enrolled on the date of retirement or who are thereafter born or adopted and timely enrolled. Coverage for any spouse or other Dependent terminates upon the earliest of the expiration of five (5) years of coverage (measured from the date the retiree’s retiree bridge medical coverage commenced), the spouse or Dependent reaches age sixty-five (65), or the retiree dies (except that upon the retiree’s death, the spouse and/or other Dependents may elect to use any remaining sick leave in the manner described above, and then will be eligible for COBRA coverage). 

29.F.4.b. POST MEDICARE RETIREE MEDICAL BENEFITS 

When first eligible and during any subsequent Annual Enrollment Period, a retired Flight Attendant or survivor may elect from among one or more supplemental plans to Medicare offered by the Company. Coverage will not be offered again once coverage has been waived unless the Flight Attendant can show proof of Creditable Coverage or has ceased due to nonpayment of the required monthly contributions.

29.F.4.c.  MONTHLY CONTRIBUTION FOR POST MEDICARE SUPPLEMENTAL PLANS COVERAGE  

Eligible individuals must pay a monthly contribution for the cost of Post-Medicare coverage.  The monthly contribution is equal to the total projected cost of such post-Medicare coverage for the calendar year, per person, minus a Company contribution equal to $90 per month per person covered.

29.F.5. REGULAR RETIREE MEDICAL

Each Flight Attendant who retires on or after the Effective Date of this Agreement while enrolled in active medical coverage who is not eligible for retiree medical benefits under Paragraphs F.3. and F.4. above (or ceases to be eligible thereunder) will be eligible to participate in the regular retiree medical program providing for participation in any applicable medical plan available to active Flight Attendants at the full cost of coverage (i.e., no Company subsidy), subject to the following rules: 

29.F.5.a.

At the time of retirement, the Flight Attendant must be at least age sixty (60); age fifty-five (55) with at least ten (10) years of Company service; or age fifty (50) with at least twenty (20) years of Company service; and the Flight Attendant must be less than age sixty-five (65). 

29.F.5.b.

Coverage for the retiree terminates at age sixty-five (65). 

29.F.5.c.

Spouse coverage will only be available if the Flight Attendant has an enrolled spouse on the date of retirement (spouses cannot later be added). Coverage will be available for any other Dependents enrolled on the date of retirement or who are thereafter born or adopted and timely enrolled. Coverage for any spouse or other Dependent terminates upon the earliest of the spouse or Dependent reaches age sixty-five (65) or the retiree dies (except that upon the retiree’s death, the spouse and Dependents will be eligible for COBRA coverage). 

29.F.6.

A Flight Attendant who does not meet the requirements of the foregoing provisions of this Paragraph F. shall not be eligible for retiree medical benefits. 

29.G. LIFE AND ACCIDENT INSURANCE

Life & Accident Insurance Life & accident insurance in effect on the Effective Date of this Agreement shall remain in effect through the end of 2016, except as otherwise set forth below. Effective as of January 1, 2017:

29.G.1. ACTIVE LIFE INSURANCE

29.G.1.a.

Company-provided life insurance will be $40,000 for all Flight Attendants covered by the Agreement.

29.G.1.b.

Flight Attendants will be provided life insurance on the Flight Attendant’s spouse and unmarried children to age twenty-two (22) as follows: 

29.G.1.b.(1).

$3,500 spouse’s life insurance 

29.G.1.b.(2).

$1,500 child’s life insurance ($1,000 if under six [6] months) 

29.G.1.c.

Group Universal Life (GUL). The Company shall continue to offer the voluntary GUL benefit to eligible Flight Attendants. A Flight Attendant’s monthly salary is the Flight Attendant’s base pay rate for the previous twelve (12) months which will be defined as eighty-five (85) hours multiplied by the Flight Attendant’s hourly rate. 

29.G.1.d.

Each Flight Attendant will be auto-enrolled in coverage equal to four times (4x) their annual salary, spousal coverage (if married), and coverage for dependent children in the same way as a new hire Flight Attendant.

29.G.2. RETIREE LIFE INSURANCE

Any Flight Attendant who was employed by United Air Lines, Inc. and was covered by the subsidiary- United collective bargaining agreement immediately prior to August 28, 2016 the Effective Date of this Agreement (and their her/his eligible dependents and survivors) will be eligible for retiree life benefits if the Flight Attendant, at retirement, meets the following: 

29.G.2.a.

Age fifty-five (55) or older with ten (10) or more years of service, or 

29.G.2.b.

On May 1, 2003 was age fifty (50) or older with ten (10) or more years of service, and 

29.G.2.c.

In both cases above, retires from active status, voluntary furlough or medical leave of absence. 

29.G.2.d.

Retiree life insurance benefit amount: $10,000 

29.G.3. PERSONAL ACCIDENT INSURANCE

Each Flight Attendant in active service as a Flight Attendant will be provided Accidental Death and Dismemberment Insurance (paid by the Company) as set forth below. 

29.G.3.a. ELIGIBILITY TO BECOME INSURED

Flight Attendants in active service. 

29.G.3.b. AMOUNT OF INSURANCE

$10,000 per Flight Attendant for death or dismemberment (loss of both hands, feet or eyes or any two (2) thereof) or one-half (1/2) of such amount for loss of one (1) hand, foot or eye.

29.G.3.c. COVERED HAZARDS

Accidental bodily injury (occupational or non-occupational) resulting in death or dismemberment directly and independently of other causes within ninety (90) days of the accident, except while acting as a Flight Attendant or crew member of an aircraft (other than while acting in such capacity for the Company). The standard exclusions pertaining to suicide, self-inflicted injury, war, infection or disease apply. 

29.G.3.d. CONTINUATION OF INSURANCE

Coverage will continue for a Flight Attendant so long as the Flight Attendant is in active service or receiving sick leave pay. 

29.G.4. LONG-TERM CARE INSURANCE

The Company will continue to offer payroll deductions for the grandfathered voluntary long-term care insurance currently insured by CNA. 

29.G.5. UNION OFFERED VOLUNTARY INSURANCE PLANS

The Company will continue to offer a single consolidated payroll deduction for Union voluntary insurance plans offered to Flight Attendants.

29.G.6.

In the event a Flight Attendant is legally declared dead pursuant to the terms of Section 27.B.3., the Flight Attendant’s beneficiary shall be entitled to a one-time payment of five thousand dollars ($5000) in addition to any other insurance benefits to which they would be entitled.

29.H. LONG TERM DISABILITY

29.H.1. ELIGIBILITY

Flight Attendants who have completed 6 months of service. 

29.H.2. ENROLLMENT

Upon becoming eligible, Flight Attendants will have the ability to enroll in a Long Term Disability (LTD) coverage option. If no election is submitted, the Flight Attendant will be automatically enrolled in LTD coverage option with a one hundred eight (180) day waiting period and 60% benefit amount, and will be subject to applicable payroll deductions. Flight Attendants will have the ability to opt out of coverage. A Flight Attendant who opts out of coverage will require evidence of insurability prior to being allowed to enroll in LTD coverage. 

29 H.2.a. 

Upon ratification of this Agreement there will be a one time open enrollment in which, all Flight Attendants will have the ability to opt into LTD coverage. A Flight Attendant who opts into coverage will not be required to demonstrate evidence of insurability prior to being allowed to enroll in LTD coverage.

29.H.3. BENEFIT AMOUNT 

The Plan will pay a monthly benefit based on one of the following elections made by the Flight Attendant: 

29.H.3.a.

120.day waiting period, 60% benefit; 

29.H.3.b.

180.day waiting period, 50% benefit; 

29.H.3.c.

180.day waiting period, 60% benefit; or 

29.H.3.d.

270.day waiting period, 50% benefit; 

of the employee’s monthly salary on the date disability begins, reduced by any amount received from the following sources: 

29.H.3.d.(1).

Workers’ compensation. 

29.H.3.d.(2).

Primary social security disability benefits (including continuation of such benefits payable after age sixty-five [65]). 

29.H.3.d.(3).

State disability benefits. 

29.H.4. MONTHLY SALARY

A Flight Attendant’s monthly salary is the Flight Attendant’s base pay rate for the previous twelve (12) months which will be defined as eighty-five (85) hours multiplied by the Flight Attendant’s hourly rate or the average of actual earnings per month for the previous twelve (12) months, whichever is greater. 

29.H.5. BENEFIT WAITING PERIOD 

The Flight Attendant may elect from the following Benefit Waiting Periods: 

29.H.5.a.

120 days (60% Benefit) 

29.H.5.b.

180 days (50% or 60% benefit) 

29.H.5.c.

270 days (50% benefit)

Benefits begin on the 121/181/271st day of total disability provided employee is under a doctor’s care. 

29.H.6. BENEFIT DURATION

29.H.6.a.

If the employee is age sixty (60) or younger when disability begins, benefits will continue until the earlier of: 

29.H.6.a.(1).

Their Her/his 65th birthday. 

29.H.6.a.(2).

No longer disabled. 

29.H.6.a.(3).

No longer under a doctor’s care. 

29.H.6.b.(1)

If disability begins on or after the employee’s 61st birthday, benefits will continue according to the following schedule, or until no longer disabled, or no longer under doctor’s care, whichever is first.

29.H.6.b.(2).

The Company will improve the schedule above if required under the Older Workers’ Benefit Protection Act. 

29.H.7. DEFINITION OF DISABILITY

Total disability means that during the first two (2) years of benefits, the employee cannot perform the Flight Attendant’s job. After two (2) years, total disability means the employee cannot do any job for which the employee has the training, education or experience. 

Limitations. LTD benefits are not paid for: 

29.H.7.a. 

War or act of war, whether declared or undeclared.

29.H.7.b. 

Service in the Armed Forces of any country. 

29.H.7.c.

Suicide or attempted suicide.

29.H.8. COVERAGE DURATION

Coverage ends when the 1st of the following events occur:

29.H.8.a.

The employee ceases to be a Flight Attendant. 

29.H.8.b.

The employee no longer makes required contributions. 

29.H.9. EMPLOYEE COST

The cost of providing LTD benefits will be shared 60% by the Company and 40% by the employee, subject to a maximum employee contribution listed below by coverage option. In no event shall any employee contribution amount be less than 30% of the total premium (employee and Company contribution) for such coverage option with the exception of the coverage option with a benefit amount of 50% and a benefit waiting period of two hundred seventy (270) days.

29.H.10. RECEIVING NEW BENEFITS

If an employee who was receiving benefits, returns to work for less than ninety (90) days, and is again unable to work because of the same or related disability, benefits will immediately recommence; but if the employee returns to work for longer than ninety (90) days or if the disability is from an unrelated cause, the disability will be considered a new disability and will be subject to a new applicable waiting period. 

29.H.11. MAXIMUM BENEFIT

There shall be no maximum monthly benefit. 

29.H.12. REINSTATEMENT OF COVERAGE

Coverage will be automatically reinstated upon an employee’s return to work from a layoff or an authorized leave of absence provided the Flight Attendant was enrolled for LTD at the start of the layoff or authorized leave of absence. 

29.I. RETIREMENT PLANS 

29.I.1. 401(K) BENEFITS

Except as set forth in Paragraph I.3. below, each Flight Attendant shall be eligible to participate in a Company-sponsored 401(k) retirement savings plan pursuant to the terms of such plan, provided that each such Flight Attendant shall be eligible for employer contributions as described below, any such plan shall conform to the requirements of this Paragraph I., and any such plan shall be amended accordingly. The benefits described herein shall not be amended, modified, altered or terminated without the prior written agreement of the Union, except as required by law or as otherwise permitted herein. Flight Attendants with Guam sourced income may be required to participate in a separate Guam-based plan along with employees from other workgroups, although they will be eligible for the employer contributions described below. The Company shall transition any other Flight Attendants under this Agreement who are participants in the United Airlines 401(k) Savings Plan immediately prior to the Effective Date to the United Airlines Flight Attendant 401(k) Plan, by plan merger or otherwise, provided the Company continues to provide each such Flight Attendant with the employer contributions described in Paragraph I.1.b. below. 

29.I.1.a. FORMER SUBSIDIARY-UNITED FLIGHT ATTENDANTS

Employer contributions for any Flight Attendant covered under this Agreement who was a subsidiary-United Flight Attendant immediately prior to August 28, 2016 the Effective Date of this Agreement shall consist of the following employer contributions made on a per-payroll-period basis: 

29.I.1.a.(1). DIRECT CONTRIBUTIONS

Direct contributions equal to 5% of the Flight Attendant’s eligible earnings, made without regard to whether the Flight Attendant contributes to the plan. 

29.I.1.a.(2). MATCHING CONTRIBUTIONS

Matching contributions equal to 100% of the Flight Attendant’s pre-tax contributions for the plan year up to 4% 3% of eligible earnings (i.e., maximum match of 4% 3%), which will be trued-up on no less than an annual basis; and 

29.I.1.a.(3). VESTING

The foregoing matching contributions and direct contributions shall be fully vested if the Flight Attendant was employed by the Company in any capacity on January 1, 2006, and otherwise shall vest according to the following vesting schedule, taking into account all Company service: 

29.I.1.a.(3).(a).

Less than 1 year – 0% 

29.I.1.a.(3).(b).

1 year but less than 2 years – 33%

29.I.1.a.(3).(c).

2 years but less than 3 years - 67% 

29.I.1.a.(3).(d).

3 years - 100%. 

29.I.1.b.   FORMER SUBSIDIARY-CONTINENTAL FLIGHT ATTENDANTS AND FORMER CONTINENTAL MICRONESIA, INC. FLIGHT ATTENDANTS 

Employer contributions for any Flight Attendant covered under this Agreement who was a subsidiary-Continental Flight Attendant, or who was a CMI Flight Attendant, immediately prior to August 28, 2016  shall consist of the following employer matching contributions made on a per-pay-period basis: 

29.I.1.b.(1).

For Flight Attendants who have completed less than five (5) years of service, the Company will match the greater of up to $300 dollar for dollar or 25% of the employee’s pre-tax contributions up to 3% of eligible pay (as limited by Section 401(a)(17) of the Internal Revenue Code). That is, the first 3% of pay is eligible for the match. 

29.I.1.b.(2).

For Flight Attendants who have completed five (5) or more, but less than ten (10), years of service, the Company will match the greater of up to $300 dollar for dollar or 33% 25% of the employee’s pre-tax contributions up to 6% 4% of eligible pay (as limited by Section 401(a)(17) of the Internal Revenue Code). That is, the first 6% 4% of pay is eligible for the match. For example, a Flight Attendant earning $35,000 annually who contributes 6% ($2,100) 4% ($1,400) will receive 33% 25% of their $2,100 her/ his $1,400 contribution $700 ($350) as a Company matching contribution. 

29.I.1.b.(3).

For Flight Attendants who have completed ten (10) or more, but less than fifteen (15) years of service, the Company will match the greater of up to $300 dollar for dollar or 50% of the employee’s pre-tax contributions up to 6% 4% of eligible pay (as limited by Section 401(a)(17) of the Internal Revenue Code). That is, the first 6% 4%  of pay is eligible for the match. For example, a Flight Attendant earning $40,000 annually who contributes 6% ($2,400) 4% ($1,400) will receive 50% of their $2,400 her/ his $1,600 contribution ($1,200) ($800) as a Company matching contribution. 

29.I.1.b.(4). 

For Flight Attendants who have completed fifteen (15) or more years of service the Company will match the greater of up to $300 dollar for dollar or 50% of the employee’s pre-tax contributions up to 8% 6% of eligible pay (as limited by Section 401(a)(17) of the Internal Revenue Code). That is, the first 8% 6% of pay is eligible for the match. For example, a Flight Attendant earning $45,000 annually who contributes 8% ($3,600) 6% ($2,700) will receive 50% of their $3,600 her/his $2,700 contribution ($1,800) ($1,350) as a Company matching contribution.

29.I.1.c. NEW HIRES, REHIRES, TRANSFERS, AND BASE CHANGES

The following rules apply to new hires, rehires, transfers, and Base changes that occur on or after August 28, 2016 the Effective Date of this Agreement: 

29.I.1.c.(1). NEW HIRES AND REHIRES

Any Flight Attendant who is hired or rehired shall be eligible for the direct contributions and matching contributions described in Paragraph I.1.a. above. 

29.I.1.c.(2). COMPANY TRANSFERS INTO FLIGHT ATTENDANT GROUP

29.I.1.c.2.(a).

Any individual employed by the Company who becomes a Flight Attendant through an employment transfer and who is accruing a benefit in CARP at such time shall continue to participate in CARP and shall be eligible for the matching contributions described in Paragraph I.1.b. above. 

29.I.1.c.2.b.

Any other individual employed by the Company who becomes a Flight Attendant through an employment transfer shall be eligible for the direct contributions and matching contributions described in Paragraph I.1.b. above. 

29.I.1.c.(3). BASE CHANGES 

29.I.1.c.(3).(a).

Any Flight Attendant who changes Bases and is a participant in CARP or the NPP under Paragraph I.2. below shall continue to participate in CARP or the NPP, as applicable, and shall continue to be eligible for the matching contributions described in Paragraph I.1.b. above. 

29.I.1.c.(3).(b).

Any other Flight Attendant who changes Bases shall continue to be eligible for the direct contributions and matching contributions described in Paragraph I.1.a. above. 

29.I.1.d. ADDITIONAL 401(K) PROVISIONS

Supplemental to the other provisions of this Paragraph I.1., the following provisions shall apply to Flight Attendant participation in any 401(k) plan sponsored by the Company (and shall apply to certain other plans to the extent expressly described below, such as the UK Group Stakeholder Plan): 

29.I.1.d.(1). ELIGIBLE EARNINGS

The definition of Eligible Earnings (or equivalent definition) under the 401(k) plan shall be the same for Flight Attendants (including Flight Attendants on Union Leave) as for other participants in the plan; provided that, at a minimum, Eligible Earnings will include base pay, sick pay, vacation pay, holiday pay, hourly incentive payments, overrides and premiums but shall exclude expense reimbursements, profit sharing payments, pension payments, imputed income or other similar awards or allowances. Other items of compensation may be included or excluded at Company discretion. The foregoing shall apply to the UK Group Stakeholder Plan to the extent permitted under UK law.

29.I.1.d.(2). ELIGIBILITY

Eligibility to participate in the 401(k) plan shall commence no later than the date the Flight Attendant has completed training, has met all FAA requirements, and is on the System Seniority List. 

29.I.1.d.(3). AUTOMATIC ENROLLMENT AND ESCALATION

The 401(k) plan may include an automatic enrollment feature and/or an automatic escalation feature at Company discretion. A Flight Attendant may elect to opt out of either feature. 

29.I.1.d.(4). PRE-TAX CONTRIBUTIONS

Each Flight Attendant may make up to the annual maximum pre-tax elective deferral contribution to the 401(k) plan as permitted by the Internal Revenue Code. 

29.I.1.d.(5). IN-SERVICE WITHDRAWALS

Flight Attendants will be eligible under the 401(k) plan for the same in-service withdrawals of pre-tax employee contributions and vested Company direct contributions and matching contributions at age fifty-nine and one-half (59½) or due to financial hardship, as limited by Federal law and regulations. Flight Attendants will be permitted to withdraw employee post-tax contributions as permitted by Federal law and regulations. 

29.I.1.d.(6). DIRECTION OF INVESTMENTS

Flight Attendants will be permitted under the 401(k) plan to direct the investments in their accounts by selecting among the investments in the investment lineup chosen by the plan’s Investment Committee or the brokerage window, except as limited by the 401(k) plan’s investment committee in accordance with its fiduciary obligations. 

29.I.1.d.7. INFORMATION SHARING

29.I.1.d.7.(a).

Once per year (or on an ad hoc basis with respect to a change to investments) upon the Union’s request, representatives of the Company will meet with the Union to discuss 401(k) investments, including any pending changes to investments determined by the plan’s Investment Committee. 

29.I.1.d.7.(b).

Once per calendar quarter, the Company will make its representatives available to meet with the Union to discuss any issues associated with the 401(k) plan (or any other retirement plan in which Flight Attendants participate). 

29.I.1.d.(8). LOANS 

The 401(k) plan will include a loan feature. Flight Attendants will pay the same loan fees as those charged to other participants. 

29.I.1.d.(9). COMMUNICATIONS 

Prior to sending any material group communications to Flight Attendants regarding the 401(k) plan, the Company will provide the Union an opportunity to review and comment on the communication. 

29.I.1.d.(10). UNION LEAVE

A Flight Attendant who is on an authorized leave of absence for Union business who is otherwise eligible to be a participant in the 401(k) plan and receives Eligible Earnings while on such leave will receive the employer direct contributions and/or company matching contributions, as applicable. 

29.I.1.d.(11). RE-EMPLOYMENT

If a Flight Attendant received a distribution of their her/his entire vested balance after termination of employment, the non-vested portion will be forfeited. In such case, the forfeited amount (unadjusted for earnings) will be restored to the Flight Attendant’s account if re-employed within five (5) years and the Flight Attendant repays within five (5) years of re-employment, the amount previously distributed. The Company will contribute to the 401(k) plan the amount necessary to restore the previously forfeited amounts to the Flight Attendant’s account. 

29.I.1.d.(12). QUARTERLY STATEMENTS

Quarterly statements shall be provided to 401(k) plan participants within sixty (60) days from the end of the quarter. 

29.I.1.d.13. RETIREMENT BOARD

There shall be established a Retirement Board for the purpose of hearing and determining all disputes between the Company and its Flight Attendant employees, retirees, and their beneficiaries, which may arise under the terms of the 401(k) plan or the UK Group Stakeholders Plan (which shall be collectively referred to herein as the “Retirement Programs”) concerning participation in or claims for benefits under the Retirement Programs, including hardship withdrawals, provided, however, that the Company shall have exclusive authority to select, appoint, replace, deal with, and direct trustees, insurance companies, investment managers, actuaries, and any other entities involved with the Retirement Programs: 

29.I.1.d.(13).(a). ESTABLISHMENT AND CONDUCT

The Retirement Board shall be constituted as follows: 

29.I.1.d.(13).(a).(1).

The Retirement Board shall consist of four (4) members, two (2) of whom shall be selected by the Company and two (2) of whom shall be selected by the Union. The Company shall establish its own rules for the selection of the members of the Retirement Board to be selected by it, and the Union shall likewise establish its own rules for the selection of the members of the Retirement Board to be selected by it. The Company shall also select one (1) alternate member who may act for either of the two (2) members of the Retirement Board appointed by the Company in the event of absence, or inability to act, of one (1) of such members, and the Union shall likewise select one (1) alternate member who may act for either of the two (2) members of the Retirement Board appointed by the Union in the event of absence, or inability to act, of one (1) of such members. Either the Company or the Union at any time may remove a member appointed by it and may select a member to fill any vacancy among the members selected by it. Both the Company and the Union shall, in writing, notify each other respectively concerning such selections, which shall continue until further written notice.

29.I.1.d.(13).(a).(2).

The Retirement Board members may, at the expense of the party appointing them, utilize outside consultants, and such consultants may be present at any meeting or hearing of the Retirement Board held in accordance with this subsection and will have access to all data necessary and pertinent to such meeting.

29.I.1.d.(13).(a).(3).

Three (3) members of the Retirement Board shall constitute a quorum for the transaction of business. At all Retirement Board meetings, Company members present shall be entitled to one (1) vote each, and Union members present shall be entitled to one (1) vote each. If at any such meeting two (2) Company members are not present, the Company member present may cast two (2) votes, and if two (2) Union members are not present, the Union member present may cast two (2) votes. 

29.I.1.d.(13).(a).(4).

The Retirement Board shall have the authority to establish rules for the conduct of business or hearings before it, and to appoint subcommittees from among the members of the Retirement Board to handle any problem within the jurisdiction of the Retirement Board. Such subcommittee shall report conclusively to the Retirement Board. 

29.I.1.d.(13).(a).(5).

The compensation, travel, and other reasonable living expenses, if any, of members of the Retirement Board selected by the Company shall be paid by the Company. The compensation, travel, and other reasonable living expenses, if any, of members of the Retirement Board selected by the Union shall be paid by the Union. 

29.I.1.d.(13).(a).(6).

Any party to a dispute to be heard by the Retirement Board may submit written facts or arguments and may request an oral hearing. 

29.I.1.d.(13).(a).(7).

The Board will notify in writing any Retirement Programs participant or beneficiary whose claim has come before the Board of its decision within thirty (30) days after the submission of written arguments or the conclusion of an oral hearing. 

29.I.1.d.(13).(a).(8).

Once a participant or a beneficiary receives a denial of a claim or hardship withdrawal, a claimant will have sixty (60) days to appeal the decision to the Retirement Board.

29.I.1.d.(13).(a).(9).

All decisions and actions taken by the Retirement Board shall be by the affirmative vote or agreement of not less than three (3) members. Such affirmative vote or agreement shall be in writing if given other than during a meeting of the Retirement Board. All decisions of the Retirement Board shall be final and binding upon the Company, the Union, and any other person having an interest in, under or derived from the Retirement Programs, including the trustee, to the extent permitted by law. No ruling or decision of the Retirement Board in one case shall create a basis for a retroactive adjustment in any prior case.

29.I.1.d.(13).(a).(10).

If the Retirement Board shall fail to agree on any matter of dispute coming before it, it shall within ten (10) days from the date of such failure to agree, designate an Impartial Referee with knowledge of defined contribution retirement plan(s). If the Retirement Board does not agree upon the selection of an Impartial Referee within such ten (10) day period, then either the Company or the Union may apply to the National Mediation Board for the designation by such Mediation Board of an Impartial Referee. The matter or dispute shall be submitted to the Retirement Board sitting with the Impartial Referee who shall act as Chairperson during the proceedings pertaining to such matter. Such Impartial Referee shall have one (1) vote. Three (3) affirmative votes shall be required to render a decision or determination on matters coming before the Retirement Board sitting together with the Impartial Referee. The Retirement Board will not have jurisdiction or power to add to or subtract from the Retirement Programs or any amendments thereto.

29.I.1.d.(13).(a).(11).

The compensation and expenses of the Impartial Referee and expense incident to the conduct of proceedings coming before the Retirement Board shall be shared equally between the Company and the Union.

29.I.1.d.(13).(a).(12).

The Retirement Board shall keep a record of all its proceedings and shall keep, or cause to be kept, all such books, accounts, records or other data as may be necessary or advisable in its judgment.

29.I.1.d.(13).(a).(13).

Meetings of the Retirement Board may be called by mutual agreement of the members at any time without notice or by any two members of the Retirement Board upon thirty (30) days’ notice to the other members of the Retirement Board. Such meetings shall be conducted at the Company’s Office unless otherwise agreed to by the members of the Retirement Board.

29.I.1.d.(13).(b). POWERS OF THE RETIREMENT BOARD

The Retirement Board shall have jurisdiction over disputes between the Company and its Flight Attendant employees, retirees, and their beneficiaries which may arise under the terms of the Flight Attendant Retirement Programs concerning participation in or claims for benefits under the Retirement Programs, including hardship withdrawals, provided, however, the Company shall have exclusive authority to select, appoint, replace, deal with and direct trustees, insurance companies, investment managers, actuaries and any other entities involved with the Retirement Programs. All decisions of the Retirement Board shall be final and binding upon the Company, the Union and any other person having an interest in, under or derived from the Retirement Programs, including the trustee, to the extent permitted by law. The Board shall have no power to add to or subtract from or modify any of the terms of the Retirement Programs. The Retirement Board shall have the power to establish rules of procedure for the conduct of its business and of hearings before it, which rules shall not be inconsistent with the provisions of this Paragraph I. 

29.I.1.d.(13).(c). REVIEW FUNCTIONS

The Retirement Board shall have the right to review the following in connection with the Flight Attendant Retirement Programs:

29.I.1.d.(13).(c).(1). 

All data that is necessary and pertinent to the claim being considered by the Retirement Board; and 

29.I.1.d.(13).(c).(2). 

Such other data as is necessary and pertinent to the discharge of the duties of the Retirement Board as described herein.

29.I.1.d.(13).(d). LIABILITY

The Retirement Board and any members thereof shall be entitled to rely upon the correctness of any information furnished by the Company and the Union. Neither the Retirement Board nor any of its members, nor the Union, nor any officers or other representatives of the Union, nor the Company, nor any Officers or other representatives of the Company, shall be liable because of any act or failure to act on the part of the Retirement Board, or any of its members, except that nothing herein shall be deemed to relieve any such individual from liability for their her/ his own fraud or bad faith.

29.I.1.d.(13).(e). INDEMNITY

The Company as to employer members and alternate employer members of the Retirement Board; the Union as to employee members and alternate employee members of the Retirement Board; shall indemnify, save and hold harmless such members, respectively, from any and all loss, costs, damage or expense which such members or any of them may incur or sustain, arising out of the discharge of the responsibilities under the Retirement Programs of the Retirement Board, except to the extent that the same shall result from the gross negligence or willful misconduct upon the part of such member or members. 

29.I.1.d.(14). AMENDMENTS

The Company will provide the Union an opportunity to discuss and comment on any proposed amendment to any provision of any 401(k) plan in which Flight Attendants participate at least thirty (30) days prior to implementation. The Company will consider and act in good faith on any such comments. No such amendment shall reduce the contribution rates set forth in Paragraphs I.1.a., I.1.b. or I.1.c. above or the rights and features set forth in this Paragraph I.1.d. without the written consent of the Union. 

29.I.1.d.(15). DISPUTE RESOLUTION

A grievance filed by the Union alleging a violation of this Paragraph I.1. shall, at the request of either party, bypass the initial steps of the grievance process and shall be submitted and heard on an expedited basis directly before the System Board of Adjustment sitting with a neutral arbitrator and shall be heard no later than thirty (30) days following the submission to the System Board and decided no later than thirty (30) days after the conclusion of such hearing, unless the parties agree otherwise in writing. This Paragraph shall not apply to disputes covered by the Retirement Board.

29.I.2. PENSION BENEFITS

29.I.2.a. CARP

29.I.2.a.(1).

Flight Attendants who immediately prior to the Effective Date of this Agreement, were covered by the subsidiary-Continental collective bargaining agreement and participating in the Continental Retirement Plan (CARP) shall continue to participate in CARP. 

29.I.2.a.(2).

Flight Attendants shall receive “Credited Service”, as defined in CARP, for service performed prior to 1984. No such credit shall be given for any period with respect to which the Flight Attendant accrued benefits under any other retirement plan qualified under section 401(a) of the Internal Revenue Code. 

29.I.2.b. NPP

Flight Attendants employed by Continental Micronesia, Inc. immediately prior to August 28, 2016, the Effective Date of this Agreement who are participating in the IAM National Pension Plan (the “NPP”) shall continue to participate therein to the extent allowed by the NPP at the following hourly contribution rates:

APPENDIX A – PLAN DESIGNS FOR REQUIRED MEDICAL OPTIONS

APPENDIX B – PLAN DESIGN FOR CORE DENTAL PLAN

APPENDIX C – PREVENTATIVE SERVICES