Additional Privileges & Benefits of Stand-in-Stead

In addition to the severance payment, employees will be eligible for Travel privileges on American Airlines/American Eagle and other benefits as defined below:

• Vested Stock Options if exercised within 90 days of your last day on payroll
• Employees with an attendance occurrence during the last 90 calendar days prior to Stand in Stead will receive 18 months of travel. An attendance occurrence includes, but is not limited to any time missed for Injuries on Duty, Missed Trip, Report Late, Sick, Maternity Sick, No Call/No Show, Personal Other and Unpaid Absence.
• Employees who report to work on time for their scheduled shift during the last 90 calendar days prior to Stand in Stead will receive 6 months of travel in addition to the 18 months of travel, for a total of two years.
• Travelers include the employee, spouse or domestic partner or registered companion, eligible dependent children, and parents.
• Travelers will have D2 boarding priority for the first 90 days and D2P boarding priority for the remainder of the 18 month or 2 year period (employee's parents will travel D2P at all times unless they are traveling with the employee during the first 90 days).

Additional Benefits:You are eligible for COBRA. If you elect COBRA, your first 30 days of coverage will be at your current active rates however; to receive the first days you must elect coverage. In addition, you may purchase COBRA at the full COBRA rates for an additional 17 months.

You are eligible for continuation of Dental, Vision, and Supplemental Medical coverage under COBRA at the full COBRA rates for a period of 18 months. You may continue to participate in the Healthcare Flexible Spending Account under COBRA for the remainder of the year in which you separate from the company.

Taking the Stand in Stead and then Retiring Directly from the SIS: You may take the Stand in Stead and then retire, provided you meet the age and service requirements for retirement:

• You must be at least 55 years of age and
• You must have at least 10 years of company service.

Your Voluntary RIF PTR will fall on your first unpaid day. Local management will process this PTR. Your Retirement PTR will fall on the second unpaid day. HR Employee Services process this PTR. You must notify your Retirement Counselor by calling 800-447-2000 of your intent to retire from a Voluntary RIF for your Retirement PTR to be processed. As long as you have continuously prefunded for the 10 years immediately preceding retirement, you will have retiree medical coverage. (Note: Former TWA employees are not required to meet the 10 years provided you have continuously prefunded since 1/1/02.)

• Your active medical coverage will end at 11:59 PM on your last day on payroll.
• Your Retiree Medical coverage will begin on 12:00 AM your first unpaid day. Your Retirement Counselor at Employee Services (800-447-2000) will assist you.

The Stand in Stead provides for 30 days of active medical coverage through COBRA at your active contribution rate. If you retire immediately upon taking the SIS as described in this section, you may elect to continue your active medical coverage through COBRA for up to 18 months, but you will not be eligible to do so at active rates during the first 30 days. If it is your intent to defer your Retiree medical coverage in favor of continuing your active coverage through COBRA and wish to remain qualified to receive the first 30 days at active rates, you would need to defer your Retirement PTR for 30 days after your Voluntary RIF PTR. If you qualify to begin your pension, you may still do so from your Voluntary RIF status - you do not have to have a Retirement PTR. Benefit Concepts will mail COBRA solicitations. If you elect COBRA, there will be a lapse in coverage, but as long as you pay the COBRA bill and return your payment to Benefit Concepts, your coverage will be retroactive. Any expense you incur during the time you are not showing as eligible for coverage may be reimbursed by submitting a claim to the appropriate health care provider once your Benefit Concepts account has been established. If you also meet the requirements to commence a pension benefit, please note pension payments begin the first of the month. If your last paid day is on the first of a month, you may commence on that date. Otherwise, you may commence your benefit on the first of the following month. Please contact Employee Services no earlier than 90 days prior to your pension benefit commencement date to begin the process.

Taking the Stand in Stead in Conjunction with the 50/55 Rule:You may take the Stand in Stead in conjunction with the 50/55 Rule, provided you meet the age and service requirements:

• You must be at least 50 but not yet 55 years of age and
• You must have at least 15 years of company service.
• Your Voluntary RIF PTR will fall on your first unpaid day.

Although you qualify for the 50 to 55 Rule, leaving the company via SIS is a voluntary separation. All Broad Based Stock options, vested and unvested, are cancelled 90 days following your separation date. If you plan to exercise any options, you should do so before the effective date of your SIS.

Your Stand in Stead travel privileges will begin on the day your PTR is processed. You will have 90 days of travel at D2 priority and another 15 or 21 months of travel, as applicable, at D2P priority. The Stand in Stead provides for 30 days of active medical coverage through COBRA at your active rates, however, you must elect COBRA to receive this benefit. You will be able to continue your medical coverage for up to 17 additional months at full rates and may cancel at anytime. Benefit Concepts will mail COBRA solicitations. If you elect COBRA, there will be a lapse in coverage, but as long as you pay the COBRA bill and return your payment to Benefit Concepts, your coverage will be retroactive and there will be no lapse in coverage. Any expense you incur during the time you are not showing as eligible for coverage may be reimbursed by submitting a claim to the appropriate health care provider once your Benefit Concepts account has been established. You will become eligible to retire when you reach age 55. You must call Employee Services when your birth date is within 90 days. Employee Services will process your Retirement PTR.

• Employees meeting the 50 to 55 requirements will automatically be billed by Employee Services for your prefunding costs. You must continue to prefund to age 55 to remain eligible for retiree medical coverage.
• Prefunding is required after age 55 only if you have not prefunded 10 consecutive years. Retiree medical and retiree travel can commence at age 55 without pension benefits commencing at age 55. Failure to make prefunding payments in a timely basis will be a forfeiture of your retiree medical coverage and your prefunding account will be refunded to you.
• Retiree Life insurance coverage begins the date your Retirement PTR is processed, even if you do not enter the Retiree Medical Plan at that time.
• Retiree Dental is available for you on the date your Retirement PTR is processed. Unlike Retiree Medical, if you wish to purchase Retiree Dental, you must do so when you first become eligible, which is the date your Retirement PTR is processed.
• Retiree Travel begins the day your Retirement PTR is processed.

If you also meet the requirements to commence a pension benefit, please note pension payments begin the first of the month. If your birthday is on the first of a month, you may commence on that date. Otherwise, you may commence your benefit on the first of the following month. Please contact Employee Services no earlier than 90 days prior to your pension benefit commencement date to begin the process. If you should become eligible to retire within the first 18 months of your last day on payroll, you may elect to do so and convert from COBRA Medical to Retiree Medical, and/or from SIS Travel to Retiree Travel.

Stand-In-Stead Program Q&A: Policies & Procedures

If there is any conflict between the information contained in this online version of Voluntary Programs information and your hardcopy version, the information contained on Jetnet will govern.

Do changes to company policy, benefits and privileges apply to me while I am out on Leave of Absence? 
Yes. Changes to company policies, benefits and privileges apply to those on Leave of Absence status just as they apply to active employees.

I'm a former TWA employee. Am I eligible for the Stand in Stead?
Yes. As a former TWA employee, you have the same eligibility as any other AA employee.

I'm on a leave with reinstatement rights. Can I elect the Stand in Stead? 
Yes. You are eligible if you are on a leave with reinstatement rights. However, the decision to approve a Stand-In-Stead is subject to your manager's approval and will be based on whether you were going to affected by the reduction in force or not.

If I'm on furlough, am I eligible for the Stand in Stead? 
No. People on furlough are not eligible nor if you are projected to be furloughed.

Who will determine my last day? 
Your manager will determine your last day.

Can a manager limit the number of employees in a department who can take the Stand in Stead? 
Yes. A manager may limit or deny employee elections based on operational and/or economic necessity.

Will I maintain my recall rights? 
Everyone who is approved for the Stand in Stead will waive their recall rights, if they have recall rights.

Will I be paid for my unused sick time? 
Pursuant to Article 34 of the AA/TWU agreement, you will be paid $25 per day based on 8 hours per day for unused sick time if you meet retiree age and service requirements at the time you take a Stand-In-Stead. You will receive this payment at the time you retire.

If I leave American under the Stand in Stead, am I eligible for unemployment? 
Since this is a voluntary program, American will take the position that you are not eligible and contest any claims. However, eligibility is determined on a state by state basis. Refer to your local unemployment office.

I purchased Flex Vacation days and have not used them. What happens to them? 
Your department will note any unused, accrued, or Flex vacation days. Refunds will be processed accordingly through the information provided in the PTR, which will be processed by local management.

What if I owe the company money when I leave? 
Payroll will deduct any money owed to the company from your final check, such as travel service charges or paycheck advances. Normally, all separated employees have their AA Credit Union loan payments converted from payroll deduction to monthly coupon payments. To cover the period between the end of your employment and the receipt of your coupon book, the equivalent of one month's deductions for each of your loans will be withheld from your final paycheck.

If I take the Stand-In-Stead, what will happen to the computer and internet access I got through the On-time-on-line PC Program? 
Per the guidelines of the program, you keep your computer. If, however, you are still making payments, any balance due will be deducted from your final paycheck. Keep in mind that the 3 years of internet access was not included in the computer purchase price but was paid for by the company as part of the program. As a result, you will lose that company-paid internet access at the time you leave. However, we recommend that you do not seek an alternate internet provider unless you receive a communication from your current program provider advising that your account will no longer be available.

If I elect Stand in Stead, will I keep my employee number for use with benefits and travel privileges?
Yes.

What if I accept the Stand in Stead and want to work for AA in the future. How will I learn about open positions? 
You can go to aaCareers.com to see what jobs are available. After internal candidates are interviewed, external candidates are considered. As a voluntary program participant, you will be considered an external candidate.

When can I begin receiving my pension? 
These voluntary leave programs do not involve your pension plan. Your decision to begin receiving your pension depends on several variables, such as your age and years of credited service. Refer to Jetnet for more information about your pension plan and how your benefit is calculated. If you are a former TWA employee, you should contact the Pension Benefit Guaranty Corporation (PBGC) for information at(800) 707-7242. Your pension with the PBGC will be your primary pension benefit.

How do I change my address? 
You can update your information through Jetnet. It is also important to contact CompLink, the AA Credit Union, and J.P. Morgan/American Century® Retirement Plan Services ($uper $aver) directly and make sure they have your correct address. They do not receive address changes submitted to Jetnet.

If an employee has system job protection and they sign up for the SIS, do they get the $12,500 in addition to severance pay?
The Stand-In-Stead offers the employee the standard severance in Article 37. The $12,500 is considered special severance, and therefore, would not apply.

If I elect the Stand in Stead (SIS), do I lose my Stock Options? 
You will have 90 days from your separation date to exercise any vested options. Stock options that are not vested at the time of separation will be cancelled.