E-BAT Feb 11

Benefits Advisory Team

Summary of meeting on February 11, 2003

Additional sections of Employee Benefits Website added. There is a Benefits Re-engineering page which includes statistics from the employee survey, Townhall meetings common themes, copies of A Benefits Xtra and summaries of the Benefits Advisory Team meetings. Most are still under construction and should be completed by early next week.

Discussion on Cafeteria Plans:

A handout was given with the benefit structure for Continental, Southwest and American airlines for comparison.

Townhall meetings update: Over 1400 employees attended. Joe Hete conducted meetings at ILN, Steve Sager, Gene Rhodes, Jeff Walling also attended the meetings at ILN. Townhall meetings were also held for ALS operations in Columbus, Ohio and Xenia, Ohio. Regional Hub Managers held Townhall meetings with their employees to review the survey results. An online Townhall meeting was held for out-base employees at non-hub location and 27 employees attended the online meeting. An audio recording was made of the on-line meeting and was available for replay through February 12, 2003, midnight ET. An ICOM was sent to all management guide holders with instructions on how to access the audio recording. In addition, outbase line maintenance management notified all of their employees via an e-mail.

Flexible Spending Accounts, on site Medical Center and PTO were main topics at Townhall meetings.

Arrangements for the Benefits Advisory Team have been made to visit the Mead Paper Family Health Care Clinic in Chillicothe, Ohio on February 24, 2003. A sign up sheet was passed around to committee members.

We then discussed Lost Time issues and then the following Q and A.

Q. Will we still accrue 9 sick days?

A. Yes, there will be no change.

Q. If there ends up being a change in the number of occurrences allowed, will the current occurrences be adjusted?

A. Yes, if we do make a change, they will be adjusted in proportion.

Q. Are we going to change the dependent coverage19 from 21?

A. Industry standard is 19 for non-students, 23 for full time college students. We are still studying this option to determine if there would be any cost savings.

Q. Would it be cheaper to go to a fully insured policy rather than being self-insured?

A. No, claims still have to be paid regardless. An insurance company would require more dollars to handle the risk. Typically, over 6% more than self-insured. For employers of our size, self-insured is almost universal.

Q. Could we give our vacation to needy employees?

A. We can look into it. However, experience at other employers with this type of program indicates few employees are willing to donate their vacation time.

Q. Will tuition refund be changing?

A. We're not planning to make any major changes to the tuition refund program.

Meeting concluded with next meeting scheduled for February 25 at 1300.

Revised: October 29, 2012.