General Discussion for Health Benefits, Pension Issues, etc for Retirees http://www.jetpiedmont.com/Phorum5/list.php?7 Sat, 21 Nov 2009 14:13:00 -0500 Phorum 5.2.10 http://www.jetpiedmont.com/Phorum5/read.php?7,978,978#msg-978 http://www.jetpiedmont.com/Phorum5/read.php?7,978,978#msg-978 william fleming Retiree Concerns Tue, 10 Nov 2009 14:15:42 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,323,323#msg-323 http://www.jetpiedmont.com/Phorum5/read.php?7,323,323#msg-323
Everyone,

Here is a very informative report from Captain Davis, co-chair of the Retiree Committee negotiating our health benefits, and the lawyer that argues on our behalf before Judge Mitchell and the bankruptcy court. As always Captain Tom does an awesome job in summarizing just exactly where the situation stands and we are all grateful to him and the committee. As is evident in this report, the committee has give very high priority to the pre-65 folks that would be hurt the must if the Health benefits are terminated. Now we can only await the judge's decision.

It appears that it is now time that we all put this aside for the holidays and enjoy your friends and family. There is nothing more that we can do. It is all now in the hand of the judge and a higher being and that decision will come sometime around or after January 5 in the New Year.

Merry Christmas and Seasons Greetings!

Don Shanks

donshanks@triad.rr.com

December 17, 2004

Dear Soaring Eagles Member:

Following is Sherwin’s report as of the conclusion of today’s hearings. As we surmised earlier, the court will not rule on our issues until early January. That means that our health insurance will not be cancelled or modified this year.

“The Court heard closing arguments today and, as far as we are concerned, the evidence phase of the hearing is over. My summation took about an hour and argued that the Debtor had failed to meet seven of the nine criteria necessary to terminate retiree health pursuant to Section 1114. My argument was based, in large part, on the excellent testimony of Nick Alvarez as our expert witness which provided evidence on several of our most important points. The company's summation also took about an hour and its attorney was interrupted a few times by the Judge to ask questions which seemed favorable to our position. The AFA attorney announced MEC ratification of the agreement and said the vote by the membership would be concluded about January 5th. Because of the AFA agreement, he put on no witnesses, but argued against the termination of the AFA defined benefit plan. He did say, though that, if the judge found that conditions existed to warrant a distress termination, the union had given up its collective bargaining right to prevent that termination. The IAM's argument was short and basically said they had been offered nothing they could take to their membership.

The Court indicated it would probably rule on January 6th after the CWA and AFA ratification votes are in. If those two unions ratify the contracts, the Judge will decide what is left (including the termination of the 3 mainline plans). If either or both union's membership reject the contract, the Court will allow limited evidence, but will still rule on January 6th.

I think we put on the best possible case and made some very good arguments. During the debtor's closing, the Judge made several points in our favor. He corrected the debtor's statement that they have been negotiating with the retirees for almost a year and stated that unlike the active employees, the retirees have absolutely nothing to give to the company in the context of a negotiation. He also stated that the debtor's position is that retiree health benefits are gone and that he could not see how there could be a mutually satisfactory resolution if that was the debtor's position. We have a meeting scheduled with the company for 11:30 am on Monday which only the lawyers and Nick Alvarez will attend. I expect a new proposal from the company at that time. We should have a committee conference call Monday afternoon to discuss it and will schedule future negotiations from there.
The company's proposal, I believe, will try to argue that the Health Coverage Tax Credit will replace the company's funding and most people will come out ahead. In fact, the company put on testimony regarding the Health Coverage Tax Credit as part of the rebuttal case which the judge indicated in closing arguments he found very superficial. Assuming it works (the Court has requested that we submit a brief on this issue by December 27 which Sara will prepare--both for us and for the Court) I have no problem using the tax credit for those under 65 provided that everyone retains the same coverage at the same or at a lower price. One of the jobs of A&M and Watson Wyatt will be to price it out to make sure no one is left behind. This will be especially critical for those who will not be covered by the tax credit.

In summary, the hearing went as well as we could reasonably expect, but we are not out of the woods yet. While there is some chance the Judge might rule our way, we are far better off reaching an agreement out of court which satisfies our basic needs.”

Sherwin S. Kaplan


It is important to remember that Sherwin is reporting as Counsel of the 1114 Retiree Committee that represents AFA, CWA, and non-union retirees as well as the retired pilots. So when he refers to the Health Coverage Tax Credit (HCTC) alternative he is referring to those retirees who do not have grandfathered health insurance for pre-Medicare retirees, as do we. As you will recall from our earlier reports, HCTC applies to those 55 to 65 who are receiving PBGC benefits. We are fortunate that we are grandfathered since many of our retirees between 55 and 65 received lump sum settlements and would not qualify. HCTC would provide some protection for the others should US Airways eventually liquidate. The HCTC document I distributed earlier is attached for your convenience.

This will be my last update before Christmas barring unforeseen developments. I feel like we have traveled many miles together this past year and I have made many new friends along the way—friends who I only know by the sound of your voice or by the imaginative email addresses that give a glimpse into each unique personality. (Sadly, turbobuttcrax@comcast.net has been retired.) So let me take this minute to tell you how important you all have been in my life this past year and to wish you all a safe and happy Christmas season.

Warmest regards,

Tom Davis

© Soaring Eagles 2004


Health Coverage Tax Credit
In August of 2002, Congress established a federal tax credit to help certain individuals pay for health insurance. The Health Coverage Tax Credit (HCTC) assists workers whose trade-related jobs have been lost, as well as certain retirees who are not entitled to Medicare. If you qualify, the HCTC can pay almost two-thirds of the cost of your health insurance premiums. The HCTC can also help cover the cost of health insurance for certain family members. Qualifying family members include your spouse and certain dependents.

The following information will help you determine if you are eligible for the HCTC and tell you how to claim the HCTC

Eligible Individuals
The first step to is to determine if you are eligible for the HCTC. The following individuals qualify for the HCTC:

· Individuals who, under the Trade Adjustment Assistance (TAA)[1] program, are either receiving a Trade Readjustment Allowance (TRA) or will be receiving TRA benefits once they have exhausted their unemployment benefits.

· Individuals who are 50 years or older and receive benefits under the Alternative Trade Adjustment Assistance (ATAA)[2] program.

· Individuals who are 55 years or older and receive benefits from the Pension Benefit Guaranty Corporation (PBGC).[3]

The following individuals do not qualify for the HCTC:

· Individuals enrolled in a health plan where an employer pays 50% or more of the cost of the premiums.

· Individuals enrolled in a health plan where an employer pays any of the cost of the premiums and the individual receives ATAA benefits.[4]

· Individuals entitled to Medicare Part A or who are enrolled in Medicare Part B.

· Individuals who participate in the Federal Employees Health Benefits Program, Medicaid, or the State Children’s Health Insurance Program.

· Individuals entitled to coverage by the U.S. military health system.

· Individuals claimed as a dependent on another’s tax return.

· Individuals imprisoned under federal, state, or local law.



Qualified Health Plan
If you are eligible for the HCTC, the next step is to determine if you are enrolled in a qualified health plan.[5] There are several types of health plans that qualify:

· Continued health insurance under COBRA.

· Individual coverage in a health plan in which you were enrolled for at least 30 days as of the date you became unemployed from a job which made you qualified for TRA benefits, ATTA benefits, or for PBGC payments.

· A State-qualified health plan.

· The health plan of your spouse.

HCTC Benefits
If you are an eligible individual enrolled in an eligible plan, the HCTC covers 65 percent of your premium payment for health insurance. The HCTC does not cover any part of your premium payment attributable to vision or dental coverage. Please note, the HCTC is not available unless you pay the other 35% of the premiums payments due.

Claiming the HCTC
There are two methods for claiming the HCTC:

· First, you can register for an advance credit in order to pay for your monthly health plan premiums. This option helps you pay for the premiums as they become due each month. To register, call the HCTC Customer Contract Center toll free at 1-866-628-HCTC. You will receive a confirmation letter with further instructions.

· Alternatively, you can elect to receive the credit when you file your 2003 federal income tax return. Include IRS Form 8885, Health Insurance Credit for Eligible Recipients, with your tax return. The HCTC is available even if you have no tax liability.

Summary
Please note that the HCTC is subject to many detailed provisions.[6] If you have any questions regarding your eligibility, you can call the HCTC Customer Contact Center at the 1-866-618-HCTC or you can visit the IRS website at [www.irs.gov] for more information on the HCTC.









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[1] The Trade Adjustment Assistance (TAA) program provides benefits to certain individuals who either lost their jobs (or are receiving reduced wages) due to increased imports of foreign-made goods or because production facilities have been relocated to other countries.

[2] The Alternative Trade Adjustment Assistance (ATAA) program assist workers who are at least 50 years old and who have found different, full-time employment within 26 weeks of having lost a trade-related job. They must meet certain eligibility requirements, including an annual salary cap of $50,000.

[3] The Pension Benefit Guaranty Corporation (PBGC) was created in 1974 to insure pension benefits of certain individuals in the private sector, namely the manufacturing, steel, and airline industries.

[4] If you or your spouse can pay for the premiums on a pre-tax basis, then a share of the premium cost is considered to be paid by the employer.

[5] You must be enrolled in a qualified health plan on the first day of the month in which you claim the HCTC.

[6] For example, the HCTC is not available for premiums you pay by using a Medical Savings Account.]]> Don Shanks Retiree Concerns Sat, 18 Dec 2004 08:19:19 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,321,321#msg-321 http://www.jetpiedmont.com/Phorum5/read.php?7,321,321#msg-321
Dear fellow retirees:

This is our weekly update on the latest information that is available to us on the Company’s intent to terminate our health insurance and pension plan and an update on our efforts to protect our benefits.

Medical and Dental Insurance

The Retiree Committee that was appointed by the judge of the Bankruptcy court continues to ‘negotiate’ improved health benefits. The committee is giving priority to the pre-65 retirees that would be affected the most if the Company is successful in terminating the insurance benefits. The committee is making strong arguments before the court for the need for continuation of the health benefits. We have a great committee representing us and we can be proud of their work.

Several retirees have asked if the current BCBS of SC ends on December 31. The answer is that it does not. It ends only when the judge says it ends and the Company sends cancellation notices to the retirees that their medical benefits have been terminated. There should be sufficient time then, to get replacement policies.

Pension plan update

The following is an update on the latest developments with regard to the Company’s intent to terminate the management and non-union pension plan. This report is a little long and it gets a little complex and technical at times so grab a cup of coffee (or a glass of your favorite wine!) and settle into the ol’ recliner for some good reading.

Pension Funds, by their nature and the need to fund thousands of retirees, are not easily understood. Most of us think in terms of our own savings accounts, certificates of deposit and our stock and bond investments. We put money into a savings account, it draws interest, it grows and in the end we have more money than when we started. Regrettably, the handling of pension plans is not that simple!

Larry Stentzel and Fred Kocher, our dear friends on the USAirways side, have done an awesome job handling the legal and actuarial aspects of our effort and what follows is their perspective of where we stand and what we need to do to convince the judge that this plan SHOULD NOT be terminated at this time. We believe that with rising interest rates this trust will be in good shape and be funded sufficiently in the coming years enabling all retirees to continue to receive their well deserved pensions.

There are several parts to this update that follows - - so pay attention - please:

1. In the following report Larry and Fred discuss the current status of our efforts under the heading of GENERAL REVIEW. There they tell about our hiring the actuarial expert ($10,000.00) who – unfortunately – confirmed that the Company would probably have to make a contribution of $274.8 million in the 2007-2009 years.
2. Then, Larry explains in the ACTURIAL REVIEW section the report we received from our actuarial expert and the “perfect storm”, a term used to describe the bumpy ride the plan has taken the past few years during times of low interest rates and decreasing asset performance. That combination created the “perfect storm”. If the plan had high interest rates and decreasing asset performance OR low interest rates and increased asset performance the plan would have only encountered a normal, everyday thunderstorm, but having encountered both, low interest and poor performance, the plan encountered the “perfect storm”.
3. In the LEGAL REVIEW section Larry covers our efforts to hire the best lawyers available (many in the DCA area had conflicts of interest). We are pleased with their work. Lawyers and experts are not cheap but in the long run can save us thousands of dollars. We need your continued financial and moral support!
4. Bob Reed, John Reece and Fred Kocher report that our expenses to this point have been about $38,000, we have about $5,000 left and are expecting this week another $28,000 from those of you who have made pledges and we will be making contact with others that have expressed an interest in contributing to the Pension Fund. If you can help with this effort, please, please email Bob Reed at RobtHReed@aol.com to make your pledge. The address to mail your check is below.

Again, we are grateful for your support, your kind words, your emails, your contributions and most of all, your continued friendship during these difficult times. I am in awe of how everyone has pulled together to do battle and, hopefully, preserve some of our benefits. The joining together by the MO, LC, PSA, AL, Empire, PI and US retirees has been a joy to behold and we are grateful to each of you.

With love and respect,

Don Shanks
donshanks@triad.rr.com

Here is the report from Larry Stentzel and Fred Kocher:
(and here’s where you need to pay attention – it gets to be tough reading!)

Actuarial Review

The actuarial firm we retained, The Segal Company, has submitted its conclusions with respect to future funding requirements for our defined benefit pension plan. Unfortunately, the Segal report confirms the Company's projection of company contributions required during the 2007-2009 period.

The report states that "like most defined benefit pension plans in the United States, the plan is being drastically effected by the current economic environment, including a poorly performing stock market driving down the value of the plan's assets, combined with very low interest rates in the past few years that have sharply increased pension liabilities. This combination of decreasing asset performance and very low interest rate is commonly referred to as 'the perfect storm'..."

The report goes on to state that "at the beginning of 2004, the plan is in a “fully funded' position based on the actuary's value of assets and a discount rate of 8.00% with a $216m credit balance." However, due to the two factors of projected poorly performing stock market and very low interest rates, this credit balance is depleted in 2006, requiring substantial company contributions to the plan in 2007-2009. The problem is further exacerbated by the special relief Congress granted with respect to 2004 and 2005, reducing required contributions below normal levels for those years but postponing this burden to later years.

The Company's projection of $274.8 million in contributions to the Plan in the 2007-2009 period is based on the "perfect storm" era ultra-low interest rates with no increase in those rates in the near future. Even assuming a change in investment mix, with an assumed 8% total return, instead of the Company's 7.2%, and assuming a moderately increasing market rate of interest (used to present value plan liabilities, with a higher rate reducing total liabilities), Segal estimates only approximately a $90 million reduction in required contributions in the 2007-2009 period.

Because the Plan is being subjected to distress termination during the "perfect storm" era, on a PBGC termination basis, Segal estimates the market value of Plan assets is only 60% of Plan liabilities. They conclude that this funding level would not be sufficient for any funding of retiree benefits above the PBGC guaranteed levels. Based on this harsh reality, our opposition to distress termination will derive no benefit from actuarial considerations.

Legal Review

In the absence of actuarial support, we face an uphill battle in opposing distress termination of our Plan. We nevertheless believe that a distress termination at this time is premature and that, at a minimum, the court should defer this decision until the time when the Company is ready to emerge from bankruptcy. It is possible that the PBGC will share this view, in presenting its case. The burden of proof is on the sponsor seeking distress termination of the plan.

The Company's actuarial witness has conceded that projections for the later years of the five year business plan are less reliable. Our Plan, frozen in 1991, has subsisted for thirteen years without imposing financial burdens on the Company. The Company acknowledges that no contributions will be required until 2007. The draconian 5.75% discount rate used to present value Plan liabilities may increase in a rising interest rate environment, thereby reducing such liabilities and a better performing stock market would increase Plan assets.

The Company has not yet promulgated its full-blown reorganization plan, yet it is seeking to terminate our Plan without our knowing the full details of the reorganization plan. The unique "perfect storm" scenario we are facing, if it results in judicial support for distress termination, will impose hardship on all retirees expecting to receive more than the PBGC guarantees.

Our lawyers will endeavor to advance these and other arguments in opposition to a distress termination at this time. Our actuaries acknowledge that when the "perfect storm" ends, in 2010 or 2011, the plan would be 90% funded, even based on the PBGC established 5.75% market interest rate assumption.

With conservative asset management, Segal believes that the Plan could be fully funded for years thereafter without additional cash requirements being imposed on the plan sponsor. We believe these views should be presented to the court.

Funding

To date, we have expended about $38,000 on legal and actuarial fees. There remains approximately $5,000 in our account. In addition, approximately $28,000 already pledged, remains to be received. Assuming that the remaining $28,000 comes in during the next week, we should be adequately funded to complete the oral arguments this week. If the company succeeds in its motion before the court, there will almost certainly be some legal work in assuring that the PBGC is properly accounting for the assets and liabilities in our pension trust. Recall that the ALPA retirees found it very necessary to retain legal counsel for this purpose. Had they not done that, many retired pilots would have suffered significant pension losses. Any decision to provide additional funding for such purposes will be entirely yours to make. As you will recall from earlier summaries, we will continue to press these important issues until funding ceases. Thanks to everyone who has pledged with great generosity in order to protect our interests. For those of you who may wish to pledge, the mailing address is:

Pension Defense Fund
Piedmont Aviation Credit Union
3810 North Liberty Street
Winston-Salem, NC. 37105-3971

Please also confirm your desire to pledge by sending an email confirmation to Bob Reed at RobtHReed@aol.com. This will help with the financial planning.

Communications

We continue to talk with you through any one of about six mail distribution lists. As mentioned before, we are reluctant to consolidate these lists, so if you are receiving more than one, please accept our apology.

Respectfully,

Larry Stentzel and Fred Kocher]]> Don Shanks Retiree Concerns Tue, 14 Dec 2004 19:11:17 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,309,309#msg-309 http://www.jetpiedmont.com/Phorum5/read.php?7,309,309#msg-309
What follows is important reading for everyone concerned. While this email is directed primarily to the management retirees that will be mostly affected by the Company's intent to terminate our pension plan, it will prove beneficial reading for everyone. It is generally agreed by most people, with expertise on these these matters, that those with pensions less than $28,000 annually will not be affected by the Company's action, thus, our reasons for not soliciting those individuals. If they are not impacted by the termination of the plan, it would not be fair to ask them for contributions. Those above $28,000, it is believed, will be affected to various degrees.

There are 3 parts to this email:

1. A report from Larry Stentzel and Fred Kocher that summarizes the events of the past week.

2. The Pension Defense Fund procedures prepared by Bob Reed and John Reece that details how the funds will be administered, and,

3. The suggested contributions to be made by various levels of management.

Those of you that have committed to a contribution to the Pension Defense Fund, the mailing address is near the bottom of this email. Your contributions may be split into two checks with one being mailed December 1-15 and the other mailed January 1-15, 2005. We are grateful for your support.

If you have questions, please let one of us know.

Don Shanks
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The following is a report from Larry Stentzel and Fred Kocher:
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December 3, 2004

To: US Airways Management Retirees

From: Larry Stentzel and Fred Kocher

There has been a good deal of progress since our report last Saturday.

We thought you would be interested in knowing of these developments.

Legal and Actuarial Counsel:

We have been successful in retaining Mr. Henry Rose, Esq., who was formerly General Counsel of the PBGC. Henry will be assisting the legal team in preparing for our legal challenge if that becomes necessary. Henry will also assist in providing guidance in the development of sample questions and answers that will help you assess your personal level of risk should the company’s motion for distress termination of our pension program be granted. And recalling the recent experience of the US Airways retired pilots group, Henry’s assistance may be needed if it becomes necessary to challenge the PBGC on any disagreements that might arise in their assessment of the funding level of our pension trust.

In addition, the law firm of Shulman Rogers has been retained as our bankruptcy and litigation counsel. A hearing in bankruptcy court commenced on December 2 and will continue on December 3 and perhaps next week. A lawyer from Shulman Rogers is attending and will brief us on developments. The PBGC has obtained a postponement until December 16 or soon thereafter of its presentation of its position with respect to the company's proposed distress termination of our plan. Mr. James Hoffman, Esq. of Shulman Rogers will represent us at that hearing before Judge Mitchell. If we conclude, after examining the actuarial data, that the company's $278.4 million contribution allegation is grossly in error, Mr. Hoffman will seek to present our position to the court at that time. We have today retained an actuary firm, Segal & Co., after being turned down because of conflict of interest by several other actuaries. Mr. Hoffman and Mr. Rose will work closely with Segal & Co. to determine the true funding status of our plan and to make sure that the court is fully aware of our position as to that funding status.

Segal’s job will be to carefully review the actuarial assumptions that underlie the company’s assertion that our pension fund is currently in distress and will require significant cash contributions from the company starting in 2007. Some of you may be aware that under the various rules of private and government accounting and trust management, a very small change in assumed interest rates can cause a very significant change in funding requirements. You have probably talked with life insurance agents who will show you a lot of projections to illustrate the time value of money. Pension actuaries look at this same type of analysis. Part of our goal here is to verify that the time value assumptions made by USAirways are realistic and accurate.

Finally, we have established initial contact with US Airways in hopes that we can have access to the analysis used to support their motion before the court. There are early indications that they may be willing to share some of this important information. However, after promising a worksheet supporting the $278.4 million contribution requirement on December 1, and later saying it would be forthcoming on Dec. 2, we still do not have it, on December 3. If our actuarial expert has access to a sufficient amount of this information and has adequate time for review, it may be possible to determine whether we can agree to their assumptions. This outcome would enable us to minimize the cost of this effort while giving assurance that the numbers are right.

Letters of Objection:

Thanks to the outstanding support of group members, we were successful in placing thirteen letters of objection with the court prior to the November 24 deadline. There were a few technical issues affecting the lengthy electronic distribution lists which the court required each objector to follow. Notwithstanding this, we believe that these letters established our legal standing with the court. Again, for those of you who submitted letters of objection, please accept our thanks for a job well done. On December 2, the Debtor offered a lengthy list of parties that have objected to the Debtor's proposals. At least nine of our objectors are listed in this exhibit.

Post-bankruptcy considerations:

Some of you may be aware that the pilots' defined benefit plan was terminated in the first bankruptcy proceeding. In that proceeding, the company appears to have taken the position that the pilots' plan was 15% underfunded. When the PBGC took over the plan, after distress termination, it adopted the company's position on funding and began sending retirement checks that were only 85% of the prior retirement payments. The pilots sued the PBGC, not in the bankruptcy court but in federal district court in the District of Columbia. The PBGC had made its own preliminary assessment of the funding status and had concluded that the underfunding was only 2%. Hence, the court ordered PBGC to increase the retirement payments to 98% of the pre-bankruptcy amounts, pending completion of the PBGC final audit. (This treatment apparently was not applicable to all retired pilots. Their circumstances were more complex because some had taken part of their retirement in cash and were differently treated by the PBGC, we understand.) The final audit could take several years. We mention this only because, even if our plan is terminated in the bankruptcy court, we may have an opportunity, in another forum, to compel the PBGC to pay the full amounts warranted by the funding status of the plan. We are not overly optimistic about succeeding in opposing distress termination of our plan because we understand it is underfunded to some unknown extent. Nevertheless, we, our counsel and actuary hope to learn the actual funding status in this bankruptcy proceeding. What we learn may be very helpful to us later, in negotiations or litigation with the PBGC if they attempt to reduce our retirement checks below the amounts supported by the actual funding status of the plan.

Funding:

As of this writing, the group has pledged slightly under $60,000. Roughly $48,000 is in the form of firm commitments (those who have pledged a specific amount and are prepared to write checks now) and an additional $12,000 in tentative pledges. Tentative means that we must contact each of these individuals to confirm the amount that they were considering in their pledge. Recall that our preliminary estimate for this project was a minimum of $100,000. There may be others who are now ready to make a pledge, but have not expressed their intent to do so yet. We would be most interested in hearing from those folks ASAP, so that we can decide how and whether to proceed. Please refer to the matrix of pledges suggested near the bottom of this email for suggestions on your contributions. Again, any decision to make a pledge is a personal decision, based mostly on each individual’s assessment of risk, should the company’s motion be granted by the court. If you are now ready to make a specific pledge, please email your information directly to Bob Reed at RobtHReed@aol.com

Many have asked how, when and to what address, pledges should be submitted. Bob Reed, former Staff VP-Stations has agreed to serve as a focal point assisted by John Reece, who ran the payroll function at and after 1989. John will serve as an auditor for this function. A complete outline describing the payment process is given below. Please refer to PENSION DEFENSE FUND provided by Bob and John for instructions.

So far, a few of the folks who pledged early, have written checks directly to the Shulman Rogers law firm, so that the firm’s initial retainer requirement could be met. The retainer amounted to $15,000. Given the fact that the other professional firms will also require financial commitments early, we suggest that you consider sending your pledges in at an early date. As we stated earlier, the process of preparing for the court date, and perhaps for later legal and actuarial work with the PBGC can only continue so long as there is an expression of financial support from this group to fund these activities.

Communications:

We continue to communicate with you through a number of distribution lists and websites as discussed in our last message. The number of interested parties continues to grow. We would estimate that 1000 or more retirees and interested parties are receiving these summaries. Don Shanks, Barry Smith and Bill Winslow have been of great assistance in keeping these messages coming to you through the web sites www.JetPiedmont.com and [USAirwaysCSMs.com].

Other News:

For those of you who did not see it, GE (one of USAirways’ largest creditors) announced an agreement with the company that would involve financing of a number of airplanes contingent on USAirways achieving success in its various motions before the court prior to mid-January. These motions include issues involving labor agreements and retiree benefits.

Respectfully,

Larry Stentzel and Fred Kocher
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The following is being provided to everyone for the purpose of (1) providing you with the address where you should mail your contribution, and (2) to assure everyone of the procedures developed to insure the safety and security of your contributions. Periodic reports on the fund's receipts and disbursements will be made to all contributors.
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PENSION DEFENSE FUND PROCEDURES

A fee exempt checking account to be named the “Pension Defense Fund” (the fund) shall be established by Tom Welch, president, Piedmont Aviation Credit Union (PACU), 3810 North Liberty Street, Winston-Salem, NC 37105-3971. The account is to be administered by the following persons (the administrators):

John Reece Robert H. Reed
3290 Grandview Club Road 118 Church Steeple Drive
Pfafftown, NC 27040 Advance, NC 27006
Tel: 336-922-2579 Tel: 336-940-5046



This account will draw no interest and will not have an identification number for tax purposes.

Checks deposited to this account are to be made payable to

“Pension Defense Fund” .............. and mailed to:

Pension Defense Fund
3810 North Liberty Street
Winston-Salem, NC 27105

Each check received will be posted to the account and a copy made for the administrators. Records and check copies will be delivered to the administrators as needed for record keeping purposes.

Disbursements from this account will be made by checks written by the PACU and signed by both administrators. Disbursements will be made only at the direction of Larry Stentzel and/or Fred Kocher. Invoices received and approved by Larry Stentzel and/or Fred Kocher will be initialed or marked in an appropriate manner for approval and faxed to:

Tom Welch
PACU
Fax Number 336-776-1111

A record will be maintained of all receipts and disbursements to and from the fund. The record will show the name and address of each person making a pledge to the fund; the amount pledged; the date of each pledge payment; the name and address for each disbursement; the date and the amount of the disbursement, and; reason for the disbursement. Copies of disbursement checks will be retained.
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The following information was sent to everyone earlier but is being repeated here as a guideline for you in determining your participation in the Pension Defense Fund.
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Level of Contributions for Management Retirees & Others

The level of contribution to the Pension Defense Fund is based on your place, title and rank in the organization at the time you retired (or will retire).

The numbers here are based on a sample of existing pledges offered by your fellow retirees in the past week.

There is nothing in this to suggest that it will be reasonable in your particular case. It is just a sampling of data that tends to point us to some form of practical thinking for the group (title, number of pledges we expect to receive and average pledge):

Executive or Senior Vice President–25 pledges - $2500-$3000
Vice President or Assistant Vice President–25 pledges - $1000-$1500
Senior Director/Director– 75 pledges- $400-$600
Manager or Supervisor– 100 pledges - $250-$300
*Others – 100 pledges-$50-$100

*Others include dispatchers, schedulers, routers, planners, maintenance foremen and other important people whose title depends on the nature of the work that they performed.

Don
donshanks@triad.rr.com
tel 336.924.1017
cell 336.399.2441]]> Don Shanks Retiree Concerns Fri, 03 Dec 2004 18:04:50 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,304,304#msg-304 http://www.jetpiedmont.com/Phorum5/read.php?7,304,304#msg-304 US Airways retired Captain Tom G. Davis has provided us with an update on the actions of the Retiree Committee that was appointed to negotiate our medical and dental benefits. It is a 37-page document so I am unable to post it here. The lawyers representing the Retiree Committee filed their objections this week. The filing essentially says that the Company can not, should not, and will not (if our committee and lawyers have anything to say about it!) terminate the retirees' medical and dental insurance benefits! The 37-page brief detailed all of the reasons why the Company should continue our medical benefits.

The document is detailed, it is long and it is a lot of legalese that only lawyers and judges (and Captain Davis) fully understands. The Committee and their law firm has represented us well in this matter and we all owe the Committee our heartfelt thanks. They are representing us, the retirees, far beyond anyone could possibly expect. The PI/US retirees are in very good hands.

Please understand that the "Retiree Committee" is ONLY - by court order - dealing with the medical and dental benefits termination. There is another group (as yet un-named!) that is working to protect our pension plans.
Joe Wilson, Dennis O'Madigan and Don Shanks are coordinating this effort with our good friends at US Airways who are spearheading this effort on our behalf and they, too, are doing a super job. This effort is especially of primary concern to management/supervisory retirees and their higher pensions with the potential of being reduced.

We've had a couple of questions about who is representing the "agents" and their pensions since our effort seems more directed at "management" (I hate that word - but for the time being I'll use it!). The agents, I think, felt they were being left out in the cold. THAT IS SIMPLY NOT TRUE! It may have appeared that way - but certainly not true.

Here's why: It is generally believed that those pensions under $25,000 a year will be okay if, and when, the Company is successful in convincing the judge that they can no longer fund our pension and it goes to the PBGC for handling. If it turns out that those receiving under $25,0000 annual pensions are harmed we can include them in this effort later. We did NOT feel we could ask the agent-group for support (meaning money!) when the we think, at this time, that they will continue to receive the about the same amount from PBGC that they are receiving today. Certainly, as we proceed down the road, if we see any risk in any group's pensions being reduced, we will MAKE SURE the agents and related groups get representation.

While we have many miles to travel together before we can claim success in our fight to retain our health benefits and pensions, we can truly be thankful on this wonderful day of Thanksgiving. My special thanks go out to US Airways Captain Davis and the Retiree Committee and to the former USAir execs, Fred Kocher and Larry Stentzel, that are working so feverishly to protect all of our pension benefits.

Finally, station managers, customer service managers, supervisors, department directors/managers, maintenance managers, reservations managers and supervisors, all manager/supervisory-type people, if you have not pledged your support, please do so by emailing me at donshanks@triad.rr.com and expressing your support. I have heard from about 50 of you and I need to hear from more of you. Don't worry about any commitment on the money at this time - we just want to know you are out there and supporting our effort. We expect our lawyers to start working on protecting our pension plan on Monday. Please pledge your support today! Email me at donshanks@triad.rr.com
Don Shanks
donshanks@triad.rr.com

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Please continue to read the emails below:
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Here is a copy of an email that Tom Davis sent the retired pilots:

Dear Soaring Eagles (US Airways Retired Pilots) Members:

Attached is some reading that should warm your hearth this Thanksgiving season. It is a trying time for us all and my hope is that this brief that we have filed with the court will demonstrate that we are not willing victims in this ongoing tragedy — that we are not going to go quietly.

In the spirit of this Thanksgiving season, I want you to know that I am personally overwhelmed by the unconditional support you have given to us, without which none of our successes to date and none of our successes to come could have been, or would be, possible.

This has truly been a reaffirming experience for me that demonstrates over and over again the abiding character of those who go down to the sea in ships—of those who, like Icarus and Daedalus, challenge the laws of gravity and accept into their care the human treasure of fathers, mothers, sons and daughters for their eternal safekeeping--and who are willing to place their own mortality in that same vessel.

Have a safe Thanksgiving and do not lose faith. We will not let you down.

Tom Davis (US Airways Retired Captain)

© Soaring Eagles 2004

-----Original Message-----
From: Bill Winslow [mailto:bwinslow@sbcglobal.net]
Sent: Wednesday, November 24, 2004 11:36 PM
To: donshanks@triad.rr.com
Cc: Tom Hammett
Subject: Retirement USAirways

Don,

We, the retired CSMs, have a website. I have placed some limited information on a special page for the rest of us to see. I have received several calls from fellow CSMs asking if I understood what is going on and how will it effect our lives. (I don’t.)

I retired in 1990. I was the last CSM in FAT (Fresno)

I will publish anything you wish on the special page in order to better inform everyone. As a matter of fact, I wish you could give us some guidance and educate the retired CSMs. A lot of people would be happy to know that someone who understands the proceedings will keep us advised.

Here is the CSM web site:
[usairwayscsms.com]
(Customer Service Manager Website)

From here you can click on the link posted to the new page.

[usairwayscsms.com] (A new page we just added)

Thanks for your help,
Bill Winslow
WebMaster for the CSMs]]> Don Shanks Retiree Concerns Thu, 11 Dec 2008 06:18:41 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,299,299#msg-299 http://www.jetpiedmont.com/Phorum5/read.php?7,299,299#msg-299
Does anyone know what happens to the original Piedmont pension program now that US Airways is sinking fast (or is it faster?). Was the PI program ever merged into the US program...and therefore now subject to being terminated...or is it alive & well and being managed somewhere away from Crystal City?

Jim]]> Jim Evans Retiree Concerns Thu, 11 Dec 2008 06:47:48 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,294,294#msg-294 http://www.jetpiedmont.com/Phorum5/read.php?7,294,294#msg-294
Hopefully, if US Airways becomes defunct; a USARA could negotiate the same for us?

Jim
Southport, North Carolina

US Airways, ex-EA members of the EARA could form a commitee to quickly model a USARA, should US Airways vanish.]]> Jim Miller Retiree Concerns Tue, 14 Dec 2004 19:15:55 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,181,181#msg-181 http://www.jetpiedmont.com/Phorum5/read.php?7,181,181#msg-181 Kermit Oakley Retiree Concerns Fri, 14 Jan 2005 23:24:16 -0500 http://www.jetpiedmont.com/Phorum5/read.php?7,53,53#msg-53 http://www.jetpiedmont.com/Phorum5/read.php?7,53,53#msg-53 Eff. 5/03 the costs for the same coverage for current employees and IAM RETIREES will go to $170/mo.
Something is wrong with this Picture!!!!!
If you have similar concerns write to your senators, your congressmen, and to US AIRWAYS Benefits Center, P.O. Box 4863, Chesapeake, VA 23327-4863. Or fax your letter to US Airways Benefits @ 856 77-3480.

Why should one group of retirees be treated differently than another. I worked under the IAM and also as a part of management. They certainly calculated my retirement based on service in both groups so at least my premiums should be prorated based on years of service in each group. At this rate I will have to send them a check each month to cover my insurance costs.

Write those letters!

Bob WAll]]> Bob Wall Retiree Concerns Thu, 22 May 2003 23:08:53 -0400