Retiree Medical Benefits Update
Retiree Medical Benefits Update
July 11, 2005
Dear Retirees:
We have received several questions about a recent United mailing titled, "Retiree Benefits Update." Although we did not receive a copy of the letter from United, a member of our LAX AFA-CWA Retired Members Club was kind enough to fax it to our office for review.
The mailing referenced our pension plan administration takeover by the Pension Benefit Guaranty Corporation (PBGC). It should be clear that your Contractual retiree medical benefits are provided by United separate from your pension benefit and termination of the Flight Attendant pension plan DOES NOT change any of those benefits. However, as the PBGC takes over administration of the pension plan, the option to deduct your medical benefits from your pension check will no longer be an option as of August 1, 2005.
We are not working with United on its project to solicit and collect alternative forms of payment for your retiree medical premiums and we will not be able to provide any direction on the process itself. We do, however, recommend that you complete the "Pre-Authorized Debit Authorization" form and return it to United Benefits Service Center as soon as possible to ensure that there is no disruption to your medical benefits.
Finally, losing our defined benefit pension plan is unacceptable. We want to make it clear that we are still focused on preserving the Flight Attendant Defined Benefit Pension Plan.
In Solidarity,
Ellon Jarvis & Jadyn Loedding
Insurance & Retirement Co-Chairpersons
United Master Executive Council
