Nevets
Well-known member
- Joined
- Oct 22, 2007
- Posts
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How does ALPA affect company issued programs such as healthcare and retirement?
I can only speak about XJT. Here is what our contract specifies.
The company will make available the same life, personal accident, medical, dental and vision insurance for each pilot and his eligible dependents as is made available to other company employees.
And insurance made available by the company will not contain an exclusion of benefits for acts of war or terrorism encountered by a pilot while in the scope of his employment.
Also, a pilot’s monetary contribution(s) for life, personal accident, medical, dental and vision insurance, including, but not limited to contribution(s) for monthly premiums and co-pays shall not exceed or be increased more than the monetary contributions required of other company employees for the same insurance.
As far as retirement as it relates to health benefits, the company will provide medical insurance for a pilot and his eligible dependents when the pilot has completed 10 years of active service with the company and has retired because of the FAA mandated retirement age. Medical insurance will not be provided once the pilot reaches the age of 65. In order to be eligible for medical insurance, a retired pilot must have been covered by the company’s medical insurance at the time of his retirement.
A retired pilot may apply 10 hours of accrued sick leave each month to cover the cost of his premium. When sick leave is exhausted, a retired pilot may continue to be covered by medical insurance if he pays the full monthly premium that would be payable by all other employees, i.e., the COBRA rate less the legal administrative costs.
The company will provide each pilot with long term disability insurance. Monthly premiums for long term disability insurance will be shared by the company and the pilot in the same percentage in effect on the date of signing of the contract.
A pilot may use accrued sick leave and accrued OJ leave to supplement worker’s compensation in the amount necessary to ensure that his minimum monthly guarantee is not reduced. A committee consisting of ALPA and company representatives will meet quarterly to review OJI claims and will establish a procedure to review appeals of rejected claims.
A committee consisting of ALPA and company members will meet quarterly to review and discuss issues related to insurance benefits. The company will share information with the members regarding benefits, costs, claims experience and possible plan design changes to the maximum extent and as early as possible to provide for effective consultation and input prior to implementing changes.
Pilots will be eligible to participate in the insurance plans on the first day of the month following 3 months of active service after the date the pilot begins training.
The overall level of insurance benefits will remain comparable for the duration of the contract. However, the company may substitute another vendor to administer or insure the benefits or administer or insure those plans itself. Prior to making changes in benefits, the company will notify the ALPA and provide ALPA an opportunity to discuss such changes.
As for retirement plans, the company will match the pilot’s contributions quarterly as follows:
Completed years of active service / company match
<5 years / 100% up to 4%
5<10 years / 100% up to 5%
10+ years / 100% up to 6%
Pilots will be vested in the company’s contributions to the plan based on his length of active service with the company as follows:
Completed years of active service / vesting
2 years / 20%
3 years / 40%
4 years / 60%
5 years / 100%
Defined Contribution Plan (B Plan)
A pilot will be enrolled in the company’s Defined Contribution Plan (B Plan) subject to the terms and conditions of the Plan. The company will make quarterly contributions to each pilot’s account in the Defined Contribution Plan (B Plan) based on the pilot’s length of active service with the company and eligible earnings as follows:
Completed years of active service / company contribution
<5 years / 2.5%
5<10 years / 4%
10<15 years / 5%
15<20 years / 5.5%
20+ years / 6%
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