Yes you are reading it wrong. Contributions are incoming into the VEBA fund. If you look at preceding paragraph, they talk about "contributions and interest attributable thereto shall be transferred to the HRA established with respect to that pilot upon the date that the pilot attains age 59." The HRA is the account a pilot can draw from. The contributions are any pilot, union, or company deposits into the VEBA fund, and according to para c., they continue after 60 if you work after 60. So the over 60 guys will continue to contribute $.50 per credit hour, for as long as they work.

See sec 27 I. 3. "As soon as practicable after October 30, 2006, but not later than January 1, 2007, the Company will contribute to the VEBA 50 cents of each paid credit hour for each pilot having a seniority list number (which would otherwise be paid to the pilot in cash) as the pilot's ongoing monthly contribution to the Post-Medicare Plan/VEBA. "