2014 TWU Retirement and Pension Presentation

1. 2014 TWU Retirement and Pension Presentation

2. Future Changes • 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

3. Retirement Planning Checklist Can be found on the Pay & Benefits Page of Jetnet –

4. Retirement Planning • 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) • 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) • 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

5. Retirement Planning • Retiree Medical • Once Retirement PTR is processed the individual will receive a letter from HR Services indicating how to enroll in Retiree Medical on Jetnet • Will be solicited for COBRA from Benefit Concepts Inc. (BCI); 18 months only -In 2015 Aon will be COBRA Administrator • Can defer Retiree Medical coverage, no action is needed; One time deferment until age 65 • 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) • Full 2014 cost of coverage • Retiree Standard Plan $507.00 per month per participant • Retiree Value Plan $785.00 per month per participant • Billed by PayFlex • Coverage ceases at age 65

6. 65 Point Travel Plan • It’s a separationthat provides retiree travel privileges • Eligibility • A minimum of 10 years active service as determined by current Company Seniority Date AND • 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

7. Pension Plan • 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

8. Commencing Pension 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

9. Pension Payment • 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

10. HR SERVICES 1-800-447-2000