Does United Airlines Have a Retirement or Pension Plan?
United Airlines has offered different versions of a Voluntary Separation Program and even created one directed to flight attendants only. Keep reading to learn about these new programs and the former plans that are still offered by the company.
Voluntary Separation Program
The Voluntary Separation Program is available to all United Airlines employees in the U.S. and Puerto Rico. Employees can apply if they’re not part of any of United’s subsidiaries, and they are either active or on leave. The program is designed to help employees who may be experiencing stress or separation from their jobs.
The Veterans Service Program (VSP) offers a variety of benefits to veterans and their families. Benefits are adapted to each individual based on their years of service and age. ..
The Retirement Health Account offers up to $45,000 in credit for a retirement health account that covers the individual and his family’s medical expenses. The account can be used to travel passes for use in the future. The account is also eligible for medical reimbursement, disregarding the type of employee’s medical plan.
United Airlines is offering a program that doesn’t exempt employees from being re-hired if they have worked at another airline in the past. The employee is free to work at any of United Airlines’ subsidiaries, but his benefits will cease if he has worked at another airline in the past.
Voluntary Separation to Leave Program
The VSL retirement program was created specifically for flight attendants. There are two types of the VSL Program: they are available for employees older than 45 years who have attained at least 15 years of service. ..
The new parental leave program in the United States offers a total of 12 weeks of paid leave, with 33% of the employee’s base wage paid within the first 10 months from the beginning of the pre-separation leave to the end of the year. This program also includes tax-free funds for medical expenses and travel privileges available until 2026. ..
This program offers a payment of 100% of the base wage from March 2021 to August 2022. Although the VSL-B lacks tax-free funds for medical expenses, it still includes the same travel benefits as the VSL-A.
Pilot Retirement Account Plan
United Airlines had a retirement plan for only pilots employed by United Airlines.
The PRAP offers pilots the chance to start building their retirement financial future by investing in several funds (managed by professionals) while they continue working. The contributions are made through automatic payroll deductions.
Pilots who are part of the plan can get expert advice to invest, loans from their PRAP accounts, and access to different tools to review and manage their progress. ..
The Retirement Health Account
United Airlines offers a retirement health account that is specifically designed for retired employees. This account allows you to reimbursement your medical expenses, which can save you a lot of money in the long run.
- Rent
- Utilities
- Food
- Transportation
- Insurance
Doctor consultations: Medicare covers dental care, co-pays for long-term care, and nursing care. Dental care: The most common type of dental care is teeth cleaning and flossing. Co-pays for long-term care: Medicare offers co-pays for certain types of long-term care services such as hospice, home health, and assisted living. Nursing care: Medicare covers nursing home expenses such as food, medication, and room and board.
United Airlines contributes $1 to the RHA for every hour that the employee works, which means that the health account is completely provided by the company. People that can benefit from the RHA are the retired employees, their spouses, and select dependents.
401(K) Retirement Savings Plan
The 401(K) Plan at United Airlines is a retirement savings plan offered to all employees. Employees can choose to contribute up to 15% of their pretax earnings into the plan, which is retrieved from their wages.
The contribution limit for the 401(K) Plan is $57,000. After that, contributions go to the RHA account. Additionally, participants can borrow from their account balances up to $50,000.
United Airlines has been coerced to create early-leave and separation programs to deal with its exceeding staff in the pandemic, which forbids people to travel as before. The current base program is the Voluntary Separation Program, but the company has also designed a special program for flight attendants, the Voluntary Separation to Leave program. In addition to these programs, United Airlines continues offering a 401(K) Plan and a health account; the best part is that all employees are eligible to apply to them!
United Airlines has several subsidiaries, including United Express, United Airlines Cargo, and United Airlines Vacations. ..
United Ground Express (UGE), United Aviation Fuels Corporation (UAFC), United Cogen, and United Vacations are some of United’s subsidiaries. They are all companies that provide aviation fuel and travel services.
Yes, an individual can cancel a benefit from the VSP2 while keeping the others.
Some people cancel their medical coverage after they find another job, although they wish to keep the travel passes. ..
