LOU 21 – Special Retirement Program
Age and qualifying service greater than or equal to 80 points
An employee electing to retire under this program shall provide the Manager, Crew
Planning and Resource Planning with ninety (90) days written notice of his/her intention to retire in order to be eligible for the Program. The ninety (90) days may be waived by mutual agreement between the employee and the Company.
Subject to eligibility, all requests for the special retirement program under this Letter of Understanding shall be granted by the Company.
Special Retirement Program
1. Severance payment of $1,000 per year of allowable service.
2. Lifetime pension (payable from payroll) which credits retiring employees one (1 )
month of additional pensionable service for each year of allowable service, including those who have achieved thirty-five (35) years of allowable service.
These additional retirement benefits are valid for eligible employees who elect to retire from November 1st, 1998 to October 31st, 2000 at which time these options will no longer be available to employees.
Long Term Solutions
The Company and the Union agree to establish a Task Force during the term of the Collective Agreement to investigate and make recommendations on the Pension Plan.
e.g. Use of Surplus, Benefit Improvements, Governance, Modification to L3.10 (36 months)
This Task Force shall be made up of equal number of Company and Union representatives and shall not be less than a total of six (6) members.
Recommendations shall be subject to the approval of the parties at the Component and Headquarters level.
The Task Force shall meet not less than four (4) times per year and all costs for flight releases shall be borne by the Company.
The Company and Union shall name their members to the Task Force within thirty (30) days of ratification of this agreement.
The Company and the Union agree that in the event the Task Force should be unable to agree on recommendations by October 31st, 2001, the pension formula shall be Improved to be no less than the equivalent of 1.75% / 2% per year of allowable service for all employees active as of October 31, 2001 or later.