The CWA-AFA is proposing to bring United Flight Attendants into the Continental Airlines Retirement Plan (CARP). This is an irresponsible proposal made by a group whose inexperience has resulted in none of their members at any airline earning a pension today. And it was made without surveying or soliciting a single proposal from the people who should be driving the upcoming negotiations – the combined group of Flight Attendants.

Here are some of the facts: 

• Federal pension funding regulations require that before 15,000 new participants can join the Continental Airlines Retirement Plan (CARP,) United must first contribute hundreds of millions of dollars in additional cash into the plan.
 
• If the influx of new participants causes CARP to fall below minimum funding requirements, lump sum benefits will be restricted or eliminated, as required by the Pension Protection Act of 2006.
 
• Obviously, CWA-AFA has not performed the detailed research by pension professionals and actuaries needed to determine the impact of adding 15,000 new participants into CARP. Had they done so, they would know the effect it would have on benefits for current Continental and future pre-merger United participants.

• They are making campaign promises without having done the proper independent research, similar to how they failed to investigate the IAM National Pension Plan for United Flight Attendants, kept the 2005 offer to join the IAM National Pension Plan secret and denied their members an opportunity to vote on this life-changing issue.

The IAM will have independent ERISA attorneys and pension actuaries fully investigate all pension options, including the possible continuation of CARP without jeopardizing benefits for current and future participants. Then these independent professionals will make an unbiased, fact-based presentation to Flight Attendants explaining all pension options. Ultimately, all Flight Attendants at the new United will decide what type of retirement package they want in a separate vote on pension plans.
 
Don’t be distracted from what is important. Voting for the CWA-AFA will cause Continental Flight Attendants to lose their 32% wage advantage in order to pay for the CWA’s pension promise. United Flight Attendants who vote to stay with their current union will lose their only real opportunity to obtain a 32% raise and a secure pension.

Some Other Pension Myths Busted: 

The IAM did not agree to pension terminations at United. We negotiated a replacement pension plan for our members AFTER the bankruptcy court upheld the PBGC’s terminations.

The IAM does not run the IAM National Pension Plan. By law, it is an independent entity, overseen by Trustees and its benefits are government-insured.

A PDF flier of this post is available by clicking here.