2.10.21 – VEOP & EVLOA-2 Frequently Asked Questions

Wednesday, February 10, 2021

VEOP & EVLOA-2 Frequently Asked Questions

APFA has compiled a list of the April 2021 Voluntary Early Out Program (VEOP) and Extended Voluntary Leave of Absence-2 (EVLOA-2) Frequently Asked Questions (FAQs). Should you have further questions regarding the VEOP or EVLOA-2, please contact an APFA Contract and Scheduling Representative by clicking here.

VEOP Balloting Deadline: February 26, 2021 at 2359 (CST)

EVLOA-2 Balloting Deadline: March 6, 2021 at 2359 (CST)

Below, you will find the April 2021 Voluntary Early Out Program (VEOP) FAQs, followed by the Extended Voluntary Leave of Absence-2 (EVLOA-2) FAQs.

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April 2021 Voluntary Early Out Program (VEOP) FAQs

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

 

Eligibility

1. When do I have to be active in order to be eligible for the VEOP, and who is eligible? 
You need to be in active status as of February 5, 2021. Absent exceptions required by law, active status for the purpose of this program is defined as a Flight Attendant on payroll receiving pay from the company, such as paid sick/vacation, IOD salary continuance, a previously offered PVLOA or VLOA, FMLA, or military leave.

2. What date do I have to have ten years of occupational seniority in which to qualify? 
You need to have ten years of occupational seniority as of February 5, 2021.

Pay

3. For the VEOP Option A, how much am I paid each month? 
You will be paid 38 hours at your applicable JCBA hourly rate as of April 1, 2021 for a period of 12 months.

4. What are the total pay hours if I participate in VEOP Option B? 
You will receive 456 hours of pay at your applicable JCBA rate.

5. When will the Option B lump sum be paid out?
The lump sum will be paid out no later than April 30, 2022.

6. Will I be taxed on the Option B lump sum?
Yes, standard taxes will be applied to the lump sum.

7. What if my pay scale changes within the 12 months? 
You will be paid at your contractual hourly pay rate in effect at the start of your VEOP.

Travel/ Positive Space Passes

8. How many positive space tickets will I receive?
You will receive eight (8) positive space, round trip tickets (A12), bookable in E inventory for VEOP Options A and B only. These tickets must be used within five years of the start of the VEOP.

9. What travel status do I have if I take VEOP Option C?
You will have 24 months of travel at a D2R status.

65-Point Plan

10. What is the 65-point plan, and how do I qualify?
To qualify for the 65-point plan, you must have a minimum of 10 years of service with American, and your age plus years of service must equal 65 or more.

Vacation Payout

11. If I take the VEOP, when will I receive my vacation payout?

• VEOP Option A: paid out no later than April 15, 2022
• VEOP Option B: paid out no later than May 15, 2021.
• VEOP Option C: paid out no later than May 15, 2021.

 

Insurance Benefits

12. How long will I have active rates for my medical, dental, and vision? 

• VEOP Options A and B: Thirty (30) months of medical, dental, and vision coverage at active rates. (Option A will be eligible for 12 months of active employee coverage followed by 18 months of active rate COBRA. Option B will be eligible for 30 moths of active rate COBRA.)
• VEOP Option C: Six (6) months of medical, dental, and vision coverage at active rates. An additional twelve (12) months of COBRA at full rates will be available beginning with the seventh month from the start of the VEOP.

RHRA (Retirement Health Reimbursement Arrangement)

13. Will I automatically get the RHRA if I qualify for the VEOP?
Not necessarily. Only those Flight Attendants taking the VEOP who are also eligible for the 65-point plan will qualify for the RHRA.

14. What is the RHRA, and where can I find a list of eligible medical expenses?
The RHRA (Retiree Health Reimbursement Arrangement) is an account that eligible retirees and spouses can use for health care expenses and premiums during retirement. The RHRA is available for VEOP Options A and B for those who qualify. To find out more information about covered expenses, please click here.

Sick

15. Can I have my sick time paid out?
Your sick time will be paid out in accordance with JCBA Section 26.D.5.

Miscellaneous

16. How are the VEOPs awarded?
VEOPs will be awarded in system seniority order.

17. I was awarded a VEOP, will I be involuntarily furloughed?
No. If you are awarded a VEOP, you will not be subject to involuntary furlough.

18. Will the Company contest unemployment claims?
No, the Company will not contest unemployment claims.

19. If I am awarded the VEOP, do I have to accept?
Yes.

20. If my CQ training base or grace month is March, and I am taking the VEOP on April 1, 2021, do I need to attend CQ training in March?
No. Once the VEOPs have been awarded, you may contact your Flight Service Manager and request to have the CQ training removed from your schedule.

21. What happens if American Airlines files for bankruptcy after I take a VEOP?
If American declares bankruptcy, any money you have already received is yours to keep. If American still owes you money, you become a creditor in the bankruptcy. The money American owes you is not guaranteed in the event of a bankruptcy.

Creditor claims in a bankruptcy are sorted into a ranking of priority. Wages and benefits are class four and five claims. Those are high priority claims, even before taxes, which are class six claims.
There are bankruptcies where the company went out of business and there was not enough money to pay wages and benefits (Braniff and Eastern). There are many more examples of bankruptcies where wages and benefits were paid in part or in full (American, US Airways, America West). This is particularly true where the business desires to keep operating.

22.  Am I required to pay dues on a VEOP?
If you take VEOP Option A, you will be dues obligated and dues will be deducted from your paycheck until your separation date from the Company (4/1/2022).

If you take VEOP Option B or C, you will pay dues until you separate from the Company (4/1/2020).

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Extended Voluntary Leave of Absence-2 (EVLOA-2) FAQs

Eligibility

1. Who is eligible to participate in an EVLOA-2?
Any Flight Attendant in active status as of February 5, 2021 may participate. Active status means you are a Flight Attendant on payroll receiving pay, including paid sick and vacation leave, IOD salary continuance, FMLA or a previously offered PVLOA or VLOA. In this case, it does not include those on military leave.

2.  What if I am currently on a PVLOA or STLOA?
If you are currently on a PVLOA or STLOA that expires on April 1, 2021 or after, you may bid for an EVLOA-2.

3. What happens if I am on an EVLOA-2 and I am subsequently furloughed?
If the involuntary furlough reaches your seniority, you will immediately be converted to an involuntary furlough status.

Pay

4. How will I be paid during my EVLOA-2?

Your rate of pay and the number of hours per month you are paid will not change for the duration of your EVLOA-2.

Vacation/Sick

5. What happens to my vacation? 
Any vacation you have not used as a result of your EVLOA-2 will be carried over and eligible for rebidding upon your return from the EVLOA-2.

6. Am I able to participate in vacation buyback?
No, you are not able to participate in vacation buyback if you take an EVLOA-2.

7. Do I accrue sick and vacation on an EVLOA-2?
You do not accrue sick or vacation while on an EVLOA-2.

8. Can I use sick time while on an EVLOA-2?
No, you may not use sick time on an EVLOA-2.

Reserve

9. Will I serve Reserve upon my return from an EVLOA-2?
You will be eligible for Reserve during your first month back from an EVLOA-2; however, you will only be required to serve Reserve if needed based on your occupational seniority.

10. What does this mean for my rotation?
Your rotation will continue as if you were an active Flight Attendant, following the language in JCBA Section 12.A.3.

Travel

11. May I utilize my non- revenue travel privileges on an EVLOA-2?
Yes, all travel privileges remain the same.

12. May I use the cabin jumpseat on an EVLOA-2?
Yes, you may utilize the cabin jumpseat.

Transfers/New Crew Base Opening

13. May I transfer bases while on an EVLOA-2?
No, you may not transfer during an EVLOA-2.

14. If a new crew base opens, may I bid for the new base?
Should a new crew base open during your EVLOA-2, you will have the option to bid for the new base, and, if awarded, return early from your EVLOA-2.

15. The EVLOA-2 Letter of Agreement states that I will return to my base of record as of the date of expiration of the EVLOA-2. What does this mean? If I take an EVLOA-2, will I avoid any potential base displacements?
No, if you take an EVLOA-2, you are not exempt or protected from being displaced. If your seniority falls within the range of required displacements at your base while you are on an EVLOA-2, you will follow the language in JCBA Section 22.H. to fill vacancies throughout the system.

In this case, your base of record becomes the base to which you were displaced, not your original base. Your base of record would be your base prior to the end of your EVLOA-2.

Training

16. Do I have to attend CQ on the EVLOA-2?
If you are awarded a 3-month EVLOA-2, training is required.

If you are on a 12 or 18-month EVLOA-2, training is not required but it is highly encouraged you attend. If you choose not to keep your qualifications current, closer to the end of your EVLOA-2, someone from training will contact you to assist you on the next steps for training enrollment.

17. What if I go QI on an EVLOA-2?

Miscellaneous

18. I see that the EVLOA-2 is available for 3, 12, or 18 months. Am I able to select only the 12-month option?
Yes. On your ballot, you will mark “not desired” for the 3-month and the 18-month options.

19. How will the EVLOA-2s be awarded?
The EVLOA-2’s will be awarded in system seniority order.

20. Do I have to accept the EVLOA-2 if awarded?
Yes. Once awarded, you may not rescind your EVLOA-2 request.

21. What if I have a carry-over trip?
You may be required to complete your carry over trip prior to the start of your EVLOA-2.

22. Do my attendance and performance points fall off if I take the EVLOA-2?
The rolling active 12-month period for events and corrective action pursuant to the Flight Attendant Attendance & Performance Policy shall be tolled for the duration of the 12 and 18 month EVLOA-2 for all Flight Attendants on such a leave (i.e., upon return, the remainder of the rolling active 12-month period for a Flight Attendant’s events and corrective action will continue to run as if no such leave had occurred).

23. Will the Company contest unemployment claims?
No, the Company will not contest unemployment claims, however, unemployment payments are not a guarantee.

24. Will I be obligated to pay my dues to APFA during my EVLOA-2?
Yes, you are required to pay dues for the duration of your EVLOA-2.

25. Can American cancel or reduce my EVLOA-2?
The Company may cancel or reduce your EVLOA-2. You would receive 60 days- notice before returning to the line, and the opportunity to return would be offered in seniority order. If enough Flight Attendants do not elect to return early from an EVLOA-2, the Company will draft in reverse seniority order.

In Solidarity,

Brian Walsh
APFA National Contract Chair
[email protected]

Kim Tuck
APFA Retirement Specialist
[email protected]