The Retiree Medical Sunset Clause – A Bargaining Accomplishment

MEC Benefits Committee

Section 29.F. of our Joint Collective Bargaining Agreement set forth the provisions of the separate Retiree Medical Programs for the following three groups of Flight Attendants:

1. Flight Attendants who Retired Prior to the Effective Date of the JCBA
2. Subsidiary United Flight Attendants employed by United Airlines prior to the effective date of the JCBA
3. Subsidiary Continental, Subsidiary Continental Micronesia employed at their respective subsidiary prior to the effective date of the JCBA and New Hire Flight Attendants hired after the effective date of the JCBA.

Flight Attendants retired prior to the effective date of the JCBA (Group 1 above) and their dependents/survivors will continue to have medical benefits as determined by the provisions of the applicable CBA (including any applicable retiree medical plan(s) or Letters of Agreement, and/or court order in effect prior to the effective date of the JCBA.    

Flight Attendants in Groups 2 & 3 (above) who retire after the end of the fifteen (15) year period commencing on the effective date of the JCBA are specifically affected by the provisions outlined in Section 29.F.2 otherwise known as the Sunset Clause. This provision sets forth that these individuals shall not be eligible for Retiree Medical Benefits provided under either the Bridge Medical Plan (Section 29.F.4.)  or the subsidiary United Retiree Medical Plan (Section 29.F.3).  Both of these Medical Plans provide a form of subsidized Retiree Medical Insurance, albeit in distinctly different ways.  In place of the subsidized benefits of Sections 29.F.3 & 4, retirees after this fifteen-year period are instead eligible for Regular Retiree Medical (Section 29.F.5) if enrolled in active medical coverage which provides for participation in any applicable medical plan available to active Flight Attendants at the full cost of coverage, (that is, with no Company subsidy) subject to the following rules:

1. At the time of retirement, must be at least 60 years of age, age 55 with at least ten years of Company service or age 50 with at least twenty (20) years of Company service and the Flight Attendant must be less than age 65.
2. Coverage terminates at age 65  
3. Coverage for spouses and dependents is available only if enrolled on the date of retirement. (There are other rules that apply for spouses and dependents as outlined in this Section of the Contract.)

Any Flight Attendant not meeting the requirements set forth above shall not be eligible for retiree medical benefits.

What is important to recognize is that regardless of pre-merger subsidiary or retiree medical plan, at age 65, Medicare becomes primary.   

For pre-merger CAL & CMI Flight Attendants as well as New Hire Flight Attendants, once age 65 is reached, there is no additional retiree medical coverage available beyond Medicare, the cost of which is fully covered by the retiree. 

When first eligible and during subsequent annual enrollments, a retired pre-merger United Flight Attendant or survivor may elect from one or more supplemental plans to Medicare offered by the Company.   

Eligible pre-merger United Flight Attendants/survivors must pay a monthly contribution for the cost of post-Medicare Coverage equal to the projected cost of such post-Medicare coverage for the calendar year, per person, less a company contribution equal to $90 per month per person covered.

From a benefits perspective, the Sunset Clause has been a reality from the date the JCBA became effective.   Addressing the Sunset Clause has been a priority of the MEC Benefits Committee from the start of this period of bargaining.  Retiree Medical is an important component of any comprehensive Retirement Plan necessary for any secure, comprehensive retirement and through our advocacy, we have ensured our Negotiating Committee identified this priority at the bargaining table.

During this round of bargaining, our Negotiating Committee was not only able to protect Retiree Medical for those retiring through August of 2031, they accomplished an extension of the access to retiree medical keeping it available for a full-year beyond the Sunset date, through August 2032.  As a result, not only is Retiree Medical available for a longer period of time for a greater number of retirees, the accomplishment created an additional period of time for a future Negotiating Committee to address the Sunset Clause and work to extend access to Retiree Medical beyond August of 2032 for an even greater number of Flight Attendant retirees, their dependents and survivors through a three-year period of dedicated preparedness and planning. 

If you have questions regarding the Sunset Clause and how it may affect your specific retirement planning, please contact insurance@unitedafa.org or retirement@unitedafa.org via email.