Think of the mitigation procedures as a ceiling. If the plan looks like it will hit the Excise Tax threshold, we have to lower the ceiling of our benefit. However, that value that we remove as we lower the ceiling will be returned to the pilot in some manner in the CBA.

Bottom line with the Excise Tax is that 1)it will be avoided by plan mitigations, and 2)whatever value is compromised by the plan mitigation will be returned to the pilots in a way that avoids accountability under the Affordable Care Act. The pilots will not bear the burden of the Excise Tax. We will move benefit around to stay under the threshold.

Q: Do I read it correctly, if we need to pay, let's say, $2000 more for our health care plan to avoid the "Cadillac" tax, is that $2000 returned to the pilot as increased pay so as to offset the increased costs
A: The mitigation procedures do not automatically come to you as cash. There are intermediate steps along the way.