Monday, July 20, 2020
July 2020 Voluntary Early Out Program (VEOP)
and Extended Voluntary Leave of Absence (EVLOA) FAQs – Part III
APFA continues to compile VEOP and EVLOA questions. Should you have further questions regarding the VEOP, EVLOA, or WARN notifications, please contact an APFA Contract and Scheduling Representative by clicking here.
- VEOP/EVLOA Q & A Part I
- VEOP/EVLOA Q & A Part II
- Quick Reference Chart: July 2020 Voluntary Early Out Program (VEOP)
July 2020 Voluntary Early Out Program (VEOP) FAQs- Part III
There are three (3) VEOP options available:
Option A: Ten (10) Years or More of Occupational Seniority: Extended Payout/No Lump Sum
Option B: Ten (10) Years or More of Occupational Seniority: Lump Sum Payout
Option C: Fewer Than Ten (10) Years of Occupational Seniority
1. Can I use the RHRA to pay for my Co-pays and Deductibles?
Yes, for qualified medical expenses. Click Here for more information on eligible medical expenses.
2. Can I have my provider bill the RHRA directly?
No, it is not insurance, it is a “reimbursement” account. You will pay out of pocket, then submit your receipts for reimbursement. We are working on securing a debit card option where you use the card to pay, then submit the receipts later. Either way, you will be submitting receipts, but with the debit card, you do not have to come up with the money in advance.
3. When can I start using the RHRA?
It is for retirement, so if you qualify under the 65-point plan to retire, you will retire under the lump sum Option B on Oct 1, 2020. With the Option A 12-month plan, you will retire on Oct 1, 2021. We expect it to be available for you to start submitting receipts approximately thirty days after you retire.
4. Does the RHRA cover health insurance premiums?
Yes, for most plans, including your Medicare Part B, Part D, and Supplemental (Medigap) premiums. You will pay the premiums, then submit a copy of the invoice, and proof of payment for reimbursement.
5. Will I be taxed on the reimbursements?
No, it is tax free. It is like the FSA/HSA plans, you/company put in money before taxes, and if used for an approved purpose, it is paid out tax free as well. That means you will be getting “more bang for the buck” with the $100,000 – $150,000 because you will not be using part of it to pay taxes.
6. I am 59, I want to participate in the VEOP, but I will have no insurance past the 30 months of active rates AA is offering. Can you explain how I might use my RHRA money to bridge my insurance to 65?
When your thirty months of active medical rate coverage ends, you will need to purchase medical insurance coverage from a private provider, or the ACA Health Care Exchanges. You will pay the monthly premiums, then submit the invoice and proof of payment to the RHRA for reimbursement. Once you reach Medicare, you can submit your Medicare paid premiums (Parts B, D and Supplemental) for reimbursement as well.
Extended Voluntary Leave of Absence (EVLOA) FAQs- Part III
1. Do the hours credited during my EVLOA count for FMLA Hours?
Yes, they do.
2. Will I be able to use KCM while on the EVLOA?
3. If I am on an EVLOA can I still participate in Annual Vacation Bidding?
Yes, you can.
4. Will I be paid out for vacation that is cancelled due to taking an EVLOA?
No. It will be placed back in your vacation bank for future bidding.
5. If Flight Attendants are displaced out of my base while I am on an EVLOA, but the displacement does not reach my seniority, will I still return to my original base at the end of my EVLOA?
Yes. If you are on an EVLOA, and Flight Attendants junior to you are displaced from your base, but your seniority is not displaced from your base, you will still return to your original base upon return from EVLOA.
APFA National Contract Chair