FDXLAG

JJ, FDX 727

The way I read 27.H.7

Individual pilots will have 25K + interest put into a Health Reimbursement Account upon reaching age 59. Contributions to this individual HRA shall not be reduced because a pilot works after 60. Where am I wrong?


7. Health Reimbursement Accounts. In accordance with the following, the Company will establish, fund, invest and administer a Voluntary Employees Beneficiary Association (VEBA) with individual Health Reimbursement Accounts (HRAs) for the following individuals:

b. For each eligible active pilot (i) having a seniority list number on August 25, 2006 , (ii) who has attained at least age 53 before January 1, 2007, (iii) who is expected to meet the age and service requirements for coverage under the Retiree Group Health Plan as of his attainment of age 60 or older, and (iv) who retires on or after August 26, 2006, the Company will make a one-time cash payment of restricted signing bonus to the VEBA equal to $25,000. Such contributions shall be made no later than January 28, 2007 (90 days after October 30, 2006). The contribution 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, or if earlier, as soon as practicable after the pilot dies. If a pilot attains age 59 or dies prior to the date that the Company funds the VEBA pursuant to this Section 27.H.7.b., the contribution and interest attributable to such pilot shall be transferred to the HRA as soon as possible after the date on which the Company funds the VEBA.

c. HRA contributions (These contributions come from VEBA fund and go to the pilot)will not be reduced for a pilot who continues as an active employee past age 60.

Busboy

HEY!!! You're not the boss of me!!

I read it. I think you're right. And, so are they.

Guys continuing to work past age 60 still keep the $25,000(Assuming they were 53 on 1/01/07) in their HRA.

Guys continuing to work past age 60 still contribute to the VEBA fund.

Of course, continuing to work and keeping the $25,000 we negotiated for your age 60 retirement health care, is quite a windfall. Even if you are still contributing $500/yr.

FDXLAG

Sorry I was going to put Busboy please don't read. But my fat fingers slipped.

Ah, but JJ said he wasn't gettin anything from VEBA. Wrong, he should have gotten 25K from veba into his HRA. He may consider 25K nothing but to me it is beer money.

727 said that contributions were into Veba. But in the context of 27H.7 (which I quoted) contributions are into the HRA from the veba fund.

But lets talk about STVs.

fdx727pilot

Actually, after reading both section 27 H and I several times, it appears that the CBA uses "contribution" both ways, as money from FDX, ALPA, and individual pilots into the VEBA fund, and as transfers to 59+ year old pilot's HRA. So, it appears Busboy has summed it up. Over 60 guys get their HRA, while contributing $.50 per credit hour, or approx $500 per year.

Jetjok

I've been wrong before, and could be this time also, but my understanding is that when a guy turns 59, the $25K goes into his Health Reimbursement Account, to be used when he retires. If said pilot continues to work, those monies are untouchable until retirement and then they can be used for all the things specified, such as health care, premiums, drugs, etc. In the meantime, I'm still contributing, at the same rate as all other pilots, to the overall fund. As well, this fund will be available to everyone else, who meets the criteria (Age 53 and service requirements) when they turn 59, or am I missing something.

So, am I getting "something" from this fund? Not that I can tell. Will I get something from it? Maybe, if I live long enough to retire and then use it.

FDXLAG

JJ you have 25K in an account with your name on it. If you die tomorrow (Heaven Forbid) it is part of your estate. That is getting something from VEBA. Those of us not of the same age as the Negotiating Commitee did not get this.

MaydayMark

That 53 "thing" bothered when I read it and bothers me more now. Basically, everyone who was 53 at the date of signing has a NRA and the rest of us "will be negotiated at a later date." Another item that BC and DW fixed for themselves but not me ... let the recall begin.

Mark

FLGATOR

Well maybe the NC can redirect the 25k and VEBA as seed money for COLA and EDUCATION in FDA's....after all they have proven so adapt at "cost neutralization" but then again I possess no special skills and am unable to decide what is in my best interest.....

SleepyF18

Just a point, the HRA is not funded out of the VEBA. It is a separate payment from the company.

Laughing_Jakal

Sleepy!!!!!!

Don't forget, we added to it with our scope payments....remember? Whole story please.