Thread: Early Outs
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Old 07-17-2020 | 05:52 AM
  #203  
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LeeFXDWG
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From: B737 CAPT IAH
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Originally Posted by Broncofan
I still didnt see any protection In there for the early outs if we go chapter 11. I dont know if there is such a protection but hopefully its addressed so people know the risk.
From the NC Brief

Leave Status versus Separation
Pilots awarded a P-VSL remain on a leave status until their 65th birthday. By keeping them as employees, pilots can continue to receive B/C contributions, which would not be allowed if they had separated. Pilots are permitted to separate sooner than age 65 if they choose but the monthly payments and active rate insurance would end at that time. A pilot may want to consider this approaching age 65 for access to their Continental Pilot Retirement Plan lump sum benefit.

Also, in the event of bankruptcy, because pilots in this program are UAL employees earning wages (even though they are no longer active pilots) and not just unsecured creditors, their benefits are protected as much as other contract benefits. Because early out programs that consider pilots separated at the start of the program fall into the latter category, and are more at risk in a bankruptcy, we intentionally designed this as a leave.
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