2014 TWU Retirement and Pension Presentation

August 20, 2014

Future Changes

August 2013

• Mercer will still be the vendor for Pension administration; only Health & Welfare administration is moving to Aon

• Benefits Service Center will change to Pension Service Center; Health & Welfare keeping the name Benefits Service Center

• Survivor Support will be moving to Aon – survivors will begin to receive 2 packages. One for Benefits and Travel from Aon and a separate one for Pension information from Mercer

Retirement Planning ChecklistCan be found on the Pay & Benefits Page of Jetnet –

August 2013

Retirement Planning

1. Pension Estimator • My Pension tab within the Benefits Service Center / Pension Service Center• Run Pension estimates on line, up to 3 side by side comparisons• Can Request Pension kit on line “Request Your Pension” between 30-90 days

from desired commencement date• Pension kit good for 180 days from print date (BCD is changeable)

1. Retirement Counseling• Review 7 Steps into Retirement on Jetnet• Can contact HR Services and set up appointment to conduct one on one

counseling session on Retiree benefits, privileges and pension• If Retiring after the Early Out must contact HR Services to process Retirement

Payroll Transaction Record (PTR)

1. 401(k) Super Saver - JP Morgan Retirement Services • Account will be frozen for 60 days after retirement date before any distributions

begin• www.retireonline.com or 1-800-345-2345

August 2013

Retirement Planning

1. Retiree Medical1. Once Retirement PTR is processed the individual will receive a letter from HR

Services indicating how to enroll in Retiree Medical on Jetnet

2. Will be solicited for COBRA from Benefit Concepts Inc. (BCI); 18 months only -In 2015 Aon will be COBRA Administrator

3. Can defer Retiree Medical coverage, no action is needed; One time deferment until age 65

4. Retiree spouses will be able to continue the pre-65 plan after retiree turns age 65 if the retiree has been enrolled (post 1/1/12 retiree’s only)

5. Full 2014 cost of coverage 1. Retiree Standard Plan $507.00 per month per participant2. Retiree Value Plan $785.00 per month per participant 3. Billed by PayFlex

6. Coverage ceases at age 65August 2013

65 Point Travel Plan

August 2013

It’s a separation that provides retiree travel privileges

Eligibility• A minimum of 10 years active service as determined by current Company Seniority

DateAND

• A combined age and years of active service as determined by current Company Seniority Date that equals or exceeds 65

Important: Managers should process the 65 Point Travel PTR the day after the separation PTR

Following the separation …

• Employees will receive online access to travel tools, policy and planning information to help manage travel privileges

• If the individual qualifies for the 50-55 Rule, at age 55 and they will need to contact HR Services to process the Retirement PTR to activate other eligible retiree benefits

Pension Plan

August 2013

• American froze its defined benefits pension plans on November 1, 2012

• Continue to earn service towards vesting and early retirement eligibility

• Still retain the full value of pension benefits accrued in the plans through October 31, 2012

• Eligibility for Pension is based on age and Retirement Eligibility Service (RES):

•15 + years of RES may commence as early as age 55 •14-10 years of RES may commence as early as age 60 •Less than 10 years of RES may commence at age 65

Commencing Pension

August 2013

When commencing a pension benefit, they will need to provide the following documents, as applicable:

• Verification of date of birth (birth certificate, passport or driver’s license)

• If choosing a pension payment option that has a joint annuitant, will need to provide proof of their date of birth

• Death certificate for spouse, if a widow or widower

• Divorce decree (requires the entire document) signed by the judge, including all property settlements

• Voided check if choosing to elect direct deposit

Pension Payment

August 2013

• First pension payments are taking 4-6 weeks to be paid; plan accordingly

• Payment will retro back to commencement date

• First check is a paper check mailed to home address

• Retirees can make address changes, direct deposit and tax changes on the Retiree View of Jetnet

August 2013

HR SERVICES 1-800-447-2000