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Article 30 Early Retirement

AGREEMENT BETWEEN AMERICAN AIRLINES,INC.
AND THE FLIGHT ATTENDANTS IN THE SERVICE OF
AMERICAN AIRLINES,INC. AS REPRESENTED BY
THE ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS.
EFFECTIVE: SEPTEMBER 12, 2001

ARTICLE GENERAL 30

A. EARLY RETIREMENT BENEFITS FOR FLIGHT ATTENDANTS
RETIRING AT OR AFTER AGE 45 BUT BEFORE AGE 55

1. Eligibility

A Flight Attendant may elect early retirement at or after age forty-five (45), but before age fifty-five (55), provided s/he has had at least twenty (20) years of Company Seniority. Flight Attendants on both active status and approved leave of absence status are eligible for the Article 30 early retirement benefits outlined herein.

2. Lump Sum

A Flight Attendant retiring early at or after age forty-five (45), but before age fifty-five (55) with twenty (20) years of Company Seniority will receive a lump sum payment of $25,000 (minus applicable taxes).

3. Pass Benefits

A Flight Attendant retiring early at or after age forty-five (45), but before age fifty-five (55) with twenty (20) years of Company Seniority, as described above, will receive the following pass benefits. These pass benefits are in lieu of any pass benefits the Flight Attendant may have been entitled to under existing Company policy had s/he not retired until age fifty-five (55) or later. The Flight Attendant shall be eligible for ten (10) round-trip SA Class "D-2" passes with service charges per year. Those eligible to use the pass benefits shall be the flight attendant, spouse and dependent children, as defined by Company policy. Reduced rates on other airlines for such Flight Attendants will be dependent upon interline agreements.

4. Notification

A Flight Attendant electing to retire early at or after age forty-five (45), but before age fifty-five (55) with twenty (20) years of Company Seniority must give the Company at least six (6) months’ advance notice. During the next three (3) months, the Flight Attendant may cancel his/her election. However, if it is not canceled by the end of the three (3) month period, the election to retire is irrevocable. All such retirements will begin on the first day of the contractual month next following six (6) months after proper notice has been given.

5. Retired Employee Life Insurance and Major Medical Coverage

A Flight Attendant retiring early from the Company who has attained at least age forty-five (45), but not age fifty-five (55), and who has completed twenty (20) years of Company Seniority, will be covered for Retired Employee Life Insurance and Major Medical benefits as follows:

a. Retired Employee Life Insurance

(1) If the Flight Attendant was hired on or after May 27, 1974, s/he shall be insured for $5,000 of term life insurance as a retired employee.

(2) If the Flight Attendant was hired before May 27, 1974, s/he shall be insured as a retired employee under the following schedule of term life insurance:

Amount of Term
Year of Retirement

Life Insurance

1

$30,000

2

25,000

3

20,000

4

15,000

5

10,000

6 and thereafter

5,000

In the event a retired Flight Attendant under 5. above does not have a dependent as determined under the Internal Revenue Code for Federal Income Tax purposes, his/her coverage shall be $5,000 of term life insurance. In the event a Flight Attendant who retired under 5. above with dependent(s) as determined under the Internal Revenue Code for Federal Income Tax purposes, no longer has a dependent, his/her coverage shall be immediately reduced to $5,000 of term life insurance.

b. Retired Employee Major Medical Coverage

(1) The Flight Attendant, his/her spouse and dependent children shall each be insured under the Retired Employee Major Medical Plan for $20,000 until the retired Flight Attendant reaches age sixty-five (65) and/or is covered by Medicare. Thereafter, the retired Flight Attendant and spouse, only, are each covered for the unused balance, if any, of the $20,000 under the Retired Employee Major Medical Plan. Such coverage shall cease upon the death of the retired Flight Attendant, or when his/her surviving spouse is eligible for coverage under Medicare, if later.

(2) The annual deductible under this Retired Employee Major Medical Plan shall be $200 per individual per calendar year. The family deductible will be satisfied in a calendar year after three (3) members of the retired Flight Attendant’s family satisfy the $200 deductible.

(3) If the Medical Services item of expense included in the Consumer Price Index-Urban Wage Earner and Clerical Workers for the month of July 1979 subsequently increases 25% over the next five (5) years, the annual deductible per individual will be increased $50 per individual, effective January 1, 1985.

(4) If the Medical Services item of expense included in the Consumer Price Index-Urban Wage Earner and Clerical Workers for the month of July 1984 subsequently increases 25% over the following five (5) years, the annual deductible per individual will be increased $50 per individual, effective January 1, 1990.

(5) This process will be repeated as the Medical Services item of expense increases. A comparable adjustment will be made in the family deductible.

(6) The Retired Employee Major Medical Plan has a standard Coordination of Benefits Provision.

6. Benefits in Lieu of Other Payments

Eligible Flight Attendants electing the benefits of early retirement under Article 30.A. will not be eligible for other special payments and benefits afforded under, but not limited to, Appendix T.

7. Retirement Benefit Plan for Flight Attendants

With respect to the Retirement Benefit Plan for Flight Attendants, the Flight Attendant’s eligibility for benefits under that Plan will be governed by the provisions of that Plan, as provided in Article 36.

APFA Headquarters
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Virtual Quarterly Membership Meeting – July 11

July 11 @ 11:00 am - 12:30 pm

APFA Headquarters
1004 West Euless Boulevard
Euless, Texas 76040

M-F: 9:00AM - 5:00PM (CT)
Phone: (817) 540-0108

Call APFA

Contract & Scheduling Desk
M-F: 7:00AM - 7:00PM (CT)
Phone: (817) 540-0108

Chat APFA

After-Hours Live Chat
M-F: 3:00PM - 11:00 PM (CT)
Sat-Sun: 9:00AM - 5:00PM (CT)

APFA Events

Virtual Quarterly Membership Meeting – July 11

July 11 @ 11:00 am - 12:30 pm

APFA Headquarters
1004 West Euless Boulevard
Euless, Texas 76040

M-F: 9:00AM - 5:00PM (CT)
Phone: (817) 540-0108

Call APFA

Contract & Scheduling Desk
M-F: 7:00AM - 7:00PM (CT)
Phone: (817) 540-0108

Chat APFA

After-Hours Live Chat
M-F: 3:00PM - 11:00 PM (CT)
Sat-Sun: 9:00AM - 5:00PM (CT)

APFA Events

Virtual Quarterly Membership Meeting – July 11

July 11 @ 11:00 am - 12:30 pm
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