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Tentative Agreement Details
In addition to the upcoming Roadshow Meetings we will send out communications that provide more detail on certain Sections.
We will start with Section 22 Retirement. Using the examples at the bottom of the page you should be able to plug in your own personal contributions and find a monthly total. It might be best if you use an average of your last three months’ pay to get the best salary number to work the formula.
Please let us know if you have any further questions and see you at a Roadshow soon!!
SECTION 22 ♦ RETIREMENT PLAN
A. The Retirement Plan for Flight Attendants in the service of Air Wisconsin Airlines Corporation (the “Plan”), effective as of January 1, 1989, as amended and restated as of January 1, 1995, shall be changed as indicated in this Agreement.
B. Flight Attendants are eligible to participate in the plan in accordance with its terms and conditions. After the completion of one year of service beginning with the first day of January or July (whichever is earlier), participating employees are eligible for a Company match equal to 30% of an employee’s deferral percentage up to a maximum deferral level of 10%. After the completion of 3 years of service beginning with the first day of the following calendar quarter, participating employees are eligible for a Company match equal to 40% of an employee’s deferral percentage up to a maximum deferral level of 10%. After the completion of 6 years of service beginning with the first day of the following calendar quarter, participating employees are eligible for a Company match equal to 50% of an employee’s deferral percentage up to a maximum deferral level of 10%. After the completion of 20 years of service beginning with the first day of the following calendar quarter, participating employees are eligible for a Company match equal to 60% of an employee’s deferral percentage up to a maximum deferral level of 10%.
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Years of Service
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Company Match
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Employee Contribution
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2-3
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30%
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Max of 10%
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4-6
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40%
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Max of 10%
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7-20
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50%
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Max of 10%
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21+
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60%
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Max of 10%
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Examples based on years of service:
If an employee contributes 4% and is in their 2nd or 3rd years of service, she will receive a Company match of 30% on the 4% contributed by the employee.
Salary for the month = $1,500.00
401k Deferrals contributed by employee (4%) = 60.00
Company Match (30%) = 18.00
Total for the month contribution into 401k plan = $78.00
If an employee contributes 4% and is in their 4th through 6th years of service, she will receive a Company match of 40% on the 4% contributed by the employee.
Salary for the month = $1,500.00
401k Deferrals contributed by employee (4%) = 60.00
Company Match (40%) = 24.00
Total for the month contribution into 401k plan = $84.00
If an employee contributes 10% and is in their 7th through 20th years of service, she will receive a Company match of 50% on 10% contributed by the employee.
Salary for the month = $2,200.00
401k Deferrals contributed by employee (10%) = 220.00
Company Match (50%) = 110.00
Total for the month contribution into 401k plan = $330.00
If an employee contributes 15% and has completed 20 or more years of service, he/she will receive a company match of 60% on 10% contributed by the employee.
Salary for the month = $3,000.00
401k Deferrals contributed by employee (15%) = 450.00
Company Match (60% to max on 10%) = 180.00
Total for the month contribution into 401k plan = $630.00
C. The Company shall act as or appoint the Plan Administrator.
D. The Company and the Union will form a three-member Retirement Board (the “Board”) with one union member and two Company members, one of which shall be an officer of the Company. The Board shall have the right, by majority vote, to advise and to recommend to the Company mutual fund companies, investment funds and auditor selection. The Board shall have the power to resolve disputes which may arise out of the application, interpretation or administration of the Plan.
E. Payroll deduction for the vested portion of retirement plan loans will be continued by the Company.
F. All costs associated with the Plan not customarily charged to the Plan in the employee benefit plan industry shall be borneby the Company, including but not limited to any set-up fees upon selection of a new mutual fund company, administrative expenses, distribution expenses, trustee fees, attorney fees, participant record keeping fees, distribution fees, Plan filing fees and printing and distribution of the Summary Plan Description. With regard to changes in law or regulation that would result in increases in the costs associated with the Plan, the Company reserves the right to charge such costs to the Plan if it is permitted to do so by law and such costs are customarily charged to the Plan in the employee benefit plan industry.
Loan fees charged to Participant accounts attributable to individual loan requests shall not exceed an origination fee of one hundred dollars ($100.00).
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