1) Can I retire from a voluntary furlough?

YES. A Flight Attendant will be treated as if they were retiring from active status if the minimum eligibility requirements for retirement age and 10 years of service are met.

2) Can I retire from a personal leave of absence?

NO. With the exception of the Medical Leave of Absence, all F/As must retire from active status.

3) Can I retire at age 45 if I have 20 years of service?

NO. F/As with twenty or more years of service that leave employment before being eligible for early retirement are considered to have resigned. The only "benefit" they receive is 7 SA passes with service charge per year within North America including Hawaii and 1 annual SA pass with service charge per year outside North America excluding Hawaii .

• Retirement means being eligible for pension and medical benefits after separation from United.
• Early retirement is age 55 with 10 years of service, however Flight Attendants who were at least age 50 with 10 years of service on May 1, 2003 retain the ability to early retire between ages 50-55 and receive medical benefits

4) Is there a disability retirement?

NO. A F/A who is disabled may retire only if she/he meets the minimum eligibility requirements of age 55 with 10 years of service, however Flight Attendants who were at least age 50 with 10 years of service on May 1, 2003 retain the ability to early retire between ages 50-55 and receive medical benefits.

A F/A who is unable to return to work, regardless if the disability is work related, at the end of the three (3) year Medical Leave of Absence, and who does not meet the minimum eligibility requirements for retirement is terminated from employment.

While on a Medical LOA, seniority and service but not participation continue to accrue.

If the F/A has 5 or more years of service, the F/A is classified as a terminated vested employee. This means a pension benefit has been earned and will be available to the individual at (as early as) age 55 or (as early as) age 50 if F/A was at least age 50 with 10 years of service on May 1, 2003.

5) What is the difference between service and participation?

Service means periods while receiving pay, including payment for sickness, disability or vacation taken prior to retirement. It also means periods during Company approved leaves. Contract Section 34.A.3.

Participation means service on and after the completion of one year of service while pay is or was received from the Company whether in active service or as in sick pay. Contract Section 34.A.4.

6) Do all Flight Attendants have a defined benefit pension and a 401(k)?

NO. All F/As have a defined benefit pension but not all F/As have a 401(k).

The following categories of F/As have 401(k) accounts: a)F/As who were employed on 1/1/92 received a Company contribution of $250 deposited in her/his 401(k) account; b)F/As who transferred a 401(k) account from previous employment and c)F/As who have enrolled in the 401(k).

7) What is the defined benefit pension formula?

Effective with the 2003-2009 Agreement, the formula has two main components. The first calculates the amount considered the “frozen, protected benefit” as of June 30, 2003 .

Which is the sum of (A) + (B) below:

(A) 2.2669% of the Monthly Earnings after January 1, 1981 .

plus

(B) The largest of these three amounts:

• Monthly retirement benefit credited as of 12/31/80
• 2.2669% of the actual monthly compensation during 1980 multiplied by
• Pension Service before 1981 in years and months or
• 2.2669% of the monthly rate of pay on 12/31/80 multiplied by Pension Service before 1981 in years and months.

When the Flight Attendant retires another formula is “laid over” the years of participation to calculate another benefit amount. That amount is then compared to the protected benefit of June 30, 2003, and the greater amount is the pension benefit.

The second formula is:

1.48% X Flight Attendant’s Final Average Earnings X years of participation (maximum number of years used 35)

Final Average Eligible Earnings will be equal to the highest consecutive sixty (60) months out of the last one hundred twenty (120) months immediately before termination of employment.

8) How is my pension calculated?

Total (Pensionable) Accumulated Earnings divided by 12; Multiplied by Early Retirement Factor, if applicable; Subtract REA charges, if applicable. Option factors are then calculated.

9) What are pensionable earnings?

Flight Pay (includes purser, night, galley change, understaffing, holding pay etc.), Sick Pay; Vacation Pay; Training Pay and the lump sum payments. The defined benefit formula is based upon a percentage of earnings.

Duty Free commissions; prizes and awards; per diem and ORC expenses; vacation accrual pay after retirement; travel/cleaning/moving allowances; STD and LTD benefits are not pensionable earnings.

10) Will I receive my full pension if I retire before age 60?

NO. You will receive a reduction of your accrued benefit. Retirement benefits will be reduced at the rate of three (3%) for each year prior to age 60 that the payments begin. There will be no reduction upon retirement at or after age 60.

Reference: Contract Section 34.A.7. Early Retirement Benefits

11) If I retire early can I defer receiving my pension benefits until a later date?

YES. Refer to the 7/95 SPD, Pension Plan Section, page P5

12) I plan to retire after my birthday at age 62. Will there be a reduction in my pension?

NO. There will be no reduction upon retirement at or after age 60. Reference: Contract Section 34.A.7.Early Retirement Benefits.

13) Does United purchase an annuity for me to provide my retirement benefit?

NO. The retirement benefit is paid directly out of the assets of the Flight Attendant Pension Plan.

14) How is my vacation calculated during the year I retire?

A retiring F/A receives vacation credit only for the calendar months worked in the year of separation. See the example at the end of the Q&As.

15) Will I continue to receive medical and dental benefits after I retire?

You will receive medical coverage through The Medical PPO (Traditional) Plan or through an HMO, if available in your area. Dental coverage is available only through COBRA for a period of 18 months.

	2004 COBRA Rates
	1 Adult	2 Adults	1 Adult + Child(ren)	2 Adults + Child(ren)
Dental Rates	$ 38.43	$ 80.71	$ 84.56	$126.83

	2005 COBRA Rates
	1 Adult	2 Adults	1 Adult + Child(ren)	2 Adults + Child(ren)
Dental Rates	$ 42.57	$ 89.40	$93.67	$140.49

COBRA - Consolidated Omnibus Budget Reconciliation Act of 1985 is a vast governmental regulation that provides for the continuation of medical and dental coverage for people who do not have any access to such coverage upon separation from their employer. In most cases it is only available for a limited amount of time. The cost to the individual is the employer's annual cost plus a 2% administration fee.

16) Do I have to pay for my medical coverage after retirement?

YES. Section 33.A.3.w.(3) Monthly contribution for Pre-Medicare Medical PPO: A retired Flight Attendant or survivor electing to be covered for Pre-Medicare medical benefits will be required to make a monthly contribution for such coverage. The required contribution of each month of coverage under the Medical PPO will be based on a 4-tier structure (1 Adult, 2 Adults, 1 Adult + Child(ren), and

2 Adults + Child(ren)). The required contribution for each month of coverage under the Medical PPO is equal to a percentage of the total projected costs of the Medical PPO, based on the Flight Attendant’s years of service as follows:

Years of Service Percentage of Cost

 10 through 19   80% 
 20 through 24   60% 
 25 and over     40% 

2004 Contributions

Pre-65 Retiree Medical Plans (Retired After July 1, 2003 )

	2004 Contributions
	1 Adult	2 Adults	1 Adult + Child(ren)	2 Adults + Child(ren)
Retired with Fewer than 20 Years of Service	$243.04	$510.38	$461.78	$729.12
Retired with 20 Through 24 Years of Service	$182.28	$382.79	$346.33	$546.84
Retired with Greater than 24 Years of Service	$121.52	$255.19	$230.89	$364.56

17) Is there any other way to be eligible for a retiree medical benefit?

YES. Under the terms and conditions of Section 33.A.3.w.(1)

• Employment is terminated, by exhausting the period of the medical leave of absence (3 years); and
• Years of service are equal to or greater than 25 years; and
• Employee is collecting Social Security Disability Benefits; and
• continues to make required contributions.

18) If I continue to work past age 65 what type of medical coverage will I receive from United?

As long as you continue to work for United, both you and your dependants will be offered the same choices of medical benefits as any other active F/A. Federal law prohibits discrimination of medical (and pension) benefits based upon age.

19) My spouse/domestic partner becomes eligible for Medicare while I’m still working for United. Who do I submit his/her medical bills to first?

Submit them to United first. As long as you continue to work for United they are considered to be the primary payer, any balances are then submitted to Medicare. There is no change in coverage for your spouse/domestic partner upon Medicare eligibility while you remain an active F/A.

20) Will I be able to get medical coverage from United after I become eligible for Medicare at age 65?

YES.

The options are:

1. United’s Medical PPO Plan (which is virtually the same as the before Medicare PPO coverage) or
2. United’s Prescription Drug Plan, only. This provides coverage for prescriptions purchased through the home delivery service or at retail pharmacies. Prescription medication will continue to be available through the home delivery service on the same basis as for active employees. For medications purchased at retail pharmacies, retirees will pay 10% of the cost of generic medications and 30% of the cost of brand-name medications.

If the flight attendant is not eligible to enroll for Medicare s/he will continue to be covered by the before Medicare Medical coverage.

21) I plan to live outside the U.S. when I retire, what happens to my medical coverage when I become eligible for Medicare?

When a retired flight attendant or, if earlier, his/her dependent becomes eligible to enroll in Medicare s/he has two post Medicare options to consider. The options are:

1. United’s Medical PPO Plan(which is virtually the same as the before Medicare coverage) or
2. United’s Prescription Drug Plan, only.

The flight attendant must elect one of these options within the 90-day period preceding the date that s/he or her/his dependent first attains age 65. Once the flight attendant elects one of these options, s/he may never elect the other option.

If s/he enrolls in the United’s Medicare PPO coverage it doesn't make any difference where s/he lives. Medicare does not cover charges that are incurred outside the United States , so, if the flight attendant is enrolled in the Medicare PPO coverage and receives care outside the United States , the plan will pay regular benefits as if Medicare does not exist. If, however, s/he receives care in the United States the plan will coordinate with Medicare whether or not the flight attendant actually enrolled for Medicare.

If s/he enrolls in the Prescription Drug plan and moves/lives outside the United States or Canada , the coverage cancels and there is no insurance coverage from any United plans.

22) How much does the Post Medicare coverage from United cost?

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

Post-65 Retiree Medical Plans (Retired After July 1, 2003 )

	2004 Rates
	1 Adult	2 Persons	3 Persons	4 Persons
Uniform Plan Design (All Group)	$189.66	$379.32	$568.98	$758.64
Prescription Drug-Only Plan	$123.33	$246.66	$369.99	$493.32

23) How do I sign up for this post Medicare medical coverage?

Approximately 4 months before a retiree (or spouse/domestic partner) turns age 65, the United Retiree Service Center mails a package to the retiree (or spouse/domestic partner) to review and elect (or decline) post Medicare medical coverage. Once the election or declination of coverage is made, it will apply for both parties.

At the time you retire and thereafter during the annual open enrollment period
you will be given the opportunity to enroll in an HMO if you live in the service area of an HMO offered by the Employer. If you enrolled in an HMO, you will be given the opportunity to return to either the Pre or Post Medicare medical benefits for which you are eligible. In the case of Post Medicare medical plan coverage, upon termination of your HMO coverage, you will be enrolled in the Post Medicare medical plan coverage in which you were previously enrolled.

If the only coverage you have had is an HMO, you will have a choice between the PPO Plan and Prescription Drug only options. You may not change between
the Medicare PPO Option and the Prescription Plan only Option after your initial enrollment.

24) What type of medical coverage will my spouse/domestic partner* have if I reach age 65 before him or her?

The retiree receives the post Medicare PPO coverage or Prescription Drug Only Plan they elected. The spouse/domestic partner continues to receive benefits under the pre Medicare (Traditional) Medical PPO Plan until he/she qualifies for Medicare, at which time the spouse/domestic partner will be covered by the same post Medicare plan as the retiree. The same applies if the spouse/domestic partner reaches age 65 before the retiree.

*Only same sex domestic partners receive medical/dental benefits

25) Will my spouse/domestic partner be covered for medical benefits if I predecease him/her as a retiree?

YES. Provided the deceased retired F/A had not waived the medical benefits coverage. Medical coverage will continue as long as any required premiums are paid; until your spouse/domestic partner remarries; is employed by the Company or dies, at which time your Dependent children's coverage also ends.

26) Will my spouse/domestic partner be eligible for Medical Coverage from United if I die before I'm retired?

YES. If the Flight Attendant was active, on a Medical Leave or Voluntary Furlough and had ten (10) or more years of Company Seniority, the Spouse/Qualified Domestic Partner (QDP) will be covered by the active medical plan until the survivor becomes eligible for Medicare or remarries (or enters into a new qualified domestic partner relationship), whichever occurs first.

27) Are there any life insurance benefits for retirees?

YES. $10,000

Section 33.G.6. Retiree Life Insurance - effective for Flight Attendants who retire on or after July 1, 2003 .

Eligibility: A Flight Attendant (and her/his eligible dependents and survivors) will be eligible for retiree life benefits if the Flight Attendant, at retirement, meets the following:

a) Age fifty-five (55) or older with ten (10) or more years of service, or b) On May 1, 2003 was age fifty (50) or older with ten (10) or more years of service, and c) In both cases above, retires from active status, voluntary furlough or Medical Leave of Absence.

28) Are my children eligible for Medical Coverage from United if I die before I'm retired?

YES. As long as they satisfy the eligibility requirements of the Plan. It will discontinue once they are no longer eligible, the widow/er or QDP is no longer covered, the child becomes eligible for other medical coverage through employment, or becomes eligible for Medicare, whichever comes first.

29) How often may I request an estimated pension benefit statement?

You may get an estimate at anytime on SKYNET. However, it does not provide any of the pension details, nor does it show what your Frozen Accrued Benefit on 6/30/2003 is. You may write to United Airlines, WHQTE, P.O. Box 66100 , Chicago , IL . 60666, U.S.A. , to request a detailed pension estimate. This request may be made once per 12 month period.

30) How do I begin the retirement process and how much time must I allow?

To begin the administrative process, The Flight Attendant calls: 1) their supervisor notifying him/her of their intent to retire and 2)1-800-FLTLINE (1-800-358-5463) to request their retirement package.

WHQTE (Pensions) is notified by FLTLINE. WHQTE then sends an e-mail to Pension-Retiree Package administration. The delivery date of the package is determined by the ASD (Annuity Start Date). United attempts to send pension packages at least 30 days prior to the ASD.

The IRS and ERISA regulations require that pensions are processed in no less than 30 days and no more than 90 days after your application, unless waived.

Your final UG100 must be processed at WHQPZ (payroll) before your benefits can be calculated. It is your supervisor's responsibility to prepare and forward this form to WHQPZ. It should be done two weeks prior to your separation from employment.

When the final UG100 is cut, the Retiree Service Center is notified, they send the retiree medical package, that action also triggers Fidelity to send the 401(k) package to the retiree.

While waiting for your pension package, obtain original or properly notarized copies of your birth certificate, your Contingent Annuitant's birth certificate and if you are married, a marriage certificate or license. Your supervisor is required to verify birth dates and marital status. Copies, not the originals, are submitted to WHQTE. If you are unable to locate these specific documents, your supervisor has a list of acceptable documents of proof that may be used instead.

If you were previously employed in other departments at United, notify WHQTE in writing when requesting a pension benefit estimate statement.

Request your pension benefit estimates approximately 12 to 18 months before your anticipated retirement date by writing to:

United Airlines, WHQTE
P.O. Box 66100
Chicago, IL . 60666
USA