Transfers among the Mechanics, Flight Attendants, Pilots, and Certain Employees Plans
By December 2007, PBGC will have issued Benefit Determination letters with Benefit Statements to all participants in the US Airways Pension Plan for IAM Represented Employees (IAM plan). Your IAM plan determination covers only benefits you earned from the IAM plan. Participants who were also covered under the US Airways Flight Attendants Plan, the Pilots Plan, or the Certain Employees Plan may be entitled to additional benefits from those plans. PBGC will issue separate determinations to all participants who are due benefits from those plans.
Pacific Southwest Airlines Retirement Plan (IBT Plan)
US Airways employees and retirees who participated in the Pacific Southwest Airlines Retirement Plan prior to April 1, 1989, may be entitled to benefits from the Western Conference of Teamsters Pension Trust (WCT) payable by the International Brotherhood of Teamsters (IBT). PBGC does not administer the IBT Plan and cannot provide information regarding the benefits it provides. To start benefits from the IBT Plan, contact the International Brotherhood of Teamsters:
Western Conference of Teamsters Pension Trust
P.O. Box 1121
Alhambra, CA 91802-1121
1 1-800-845-0571
The US Airways IAM plan benefit may start as early as age 50. The IBT plan benefit, attributable to service with PSA, may not start before age 55. If you start your US Airways IAM plan benefit before age 55 and are entitled to an IBT benefit, your US Airways IAM plan benefit amount will decrease at 55. The US Airways IAM plan benefit is reduced by the benefit you are entitled to receive from the IBT. PBGC is following the way your plan was administered by US Airways.
Your benefit statement from PBGC shows only the US Airways IAM plan portion of your benefit. Your entire benefit is in two (2) pieces -- the US Airways IAM plan benefit, which is payable by PBGC, plus the IBT Plan benefit, which is payable by the Western Conference of Teamsters Pension Trust. Because of the way the benefit is split, the US Airways IAM portion of the benefit, paid by the PBGC, may be larger if you start your benefits at an earlier date, as shown in the example below. The combined benefit will always be larger if you wait until a later date to retire. US Airways IAM plan reduction factors are applied to the US Airways IAM plan benefit and PSA reduction factors are applied to the IBT Plan benefit. See the example below:
Benefit starting at age 65 based on total service: $1,000
IBT benefit starting at age 65: $400
US Airways IAM plan benefit starting at age 65:
Total benefit - IBT benefit = $1,000 - $400 = $600
Participant will receive $400 from IBT
(After contacting IBT for information and application)
Participant will receive $600 from PBGC
(Benefit shown on the benefit statement from PBGC)
Total combined benefit at age 65 ($400 + $600) = $1,000
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US Airways IAM plan Early Retirement Factor at age 55: 0.9000
IBT Early Retirement Factor at age 55: 0.7000
Benefit starting at age 55 based on total service
$1,000 x 0.9000 = $900
IBT benefit starting at age 55:
$400 x 0.7000 = $280
US Airways IAM plan benefit starting at age 55:
Total benefit - IBT benefit = $900 - $280 = $620
Participant will receive $280 from IBT
(After contacting IBT for information and application)
Participant will receive $620 from PBGC
(Benefit shown on the benefit statement from PBGC)
Total combined benefit at age 55 ($280 + $620) = $900
Eastern Airlines /Shuttle, Inc. Pension Plan
PBGC pays the USAirways IAM portion and the Shuttle portion of your benefit. The Eastern portion is paid by Eastern and is an offset to the benefit paid by PBGC.
a) The Shuttle portion of your US Airways IAM plan benefit will be offset by your Eastern Airlines benefit. Offsetting is simply taking into account what you are paid by another plan and paying you the amount remaining after the offset is taken into account.
b) The US Airways IAM plan benefit may start as early as age 50. The Shuttle portion of the benefit, payable by the PBGC, cannot start before age 55. If you start your US Airways IAM plan benefit prior to age 55, your PBGC payable benefit will increase at age 55, when the Shuttle portion of your benefit starts.
c) If you had more than 20 years of Credited Service, were eligible for immediate retirement at termination of employment, and were less than age 62, you may be entitled to receive a supplement. This supplement is a temporary payment that ends at age 62. If your benefit is in this form, your benefit amount will decrease at age 62..