LETTER OF AGREEMENT Between US AIRWAYS INC

LETTER OF AGREEMENT
Between
US AIRWAYS INC.
and
THE FLIGHT CREW TRAINING INSTRUCTORS
in the service of
US AIRWAYS, INC.
as represented by
THE TRANSPORT WORKERS UNION

SUPPLEMENTARY COST REDUCTIONS

THIS LETTER OF AGREEMENT is made and entered into in accordance with Title II of the Railway Labor Act, as amended, by and between US Airways, Inc. (hereinafter referred to as the "Company") and the Flight Crew Training Instructors in the service of US Airways, Inc. as represented by the Transport Workers Union (hereinafter referred to as "Union").

WHEREAS the Company and the Union have studied the current situation of US Airways and have concluded that additional cost reductions beyond those in the August 26, 2002 Restructuring Agreement ("Restructuring Agreement") are necessary to sustain the airline through bankruptcy and to achieve ATSB approval for a loan guarantee and,

WHEREAS the parties have agreed to enter negotiations to identify additional cost reductions including productivity and benefit modifications in order to ensure US Airways’ emergence from bankruptcy and approval of an ATSB guaranteed loan.

NOW THEREFORE the parties mutually agree to amend the Restructuring Agreement as specified in the following Attachments, contained below: (A) Revisions to Restructuring Agreement, and (B) Health and Welfare Benefit Changes.

Other than as specifically modified in these documents all terms and conditions of the TWU-US Airways Collective Bargaining Agreement effective May 3, 1999 as amended by the Restructuring Agreement (hereinafter referred to as the "Agreement") shall remain in full force and effect.

This Letter of Agreement shall become effective under the terms and conditions and on the date specified in Attachment A.

IN WITNESS WHEREOF, the parties hereto have signed this Letter of Agreement this ___ day of December 2002.

FOR THE TRANSPORT WORKERS UNION
Michael Bakalo--International Vice President
William E. Gray--President, Local 547

FOR US AIRWAYS, INC.
Jerrold A. Glass--Senior Vice President, Employee Relations
P. Douglas McKeen--Vice President, Labor Relations

WITNESS for the Transport Workers Union
John A. DeWitt--Negotiating Committee Chairman
L. Peter Ache--Negotiating Committee
Charles Davis--Negotiating Committee

WITNESS for US Airways, Inc.
Paul L. Morrell--Director, Flight Training and Standards
Anthony J. Bralich, Jr.--Managing Director, Labor Relations - Flight
John H. McFall--Manager, Labor Relations-Flight
Stewart A. Wright--Supervisor, Quality and Compliance - Airbus

Attachment A

EFFECTIVE DATE: January 1, 2003

PRODUCTIVITY:

Amend the Agreement to permit the de-linking of uncovered events and the utilization of administrative days to cover such events before being required to use overtime. (See Attachment A-1)
Amend the Agreement so that, for the purpose of covering open events, a paid day off shall not be considered a workday. (See Attachment A-1)

MINIMUM AIRCRAFT:

As a condition of implementing and maintaining any of the Productivity Improvements, the Minimum Active Fleet shall be increased to 279 aircraft (excluding SJs but including pilot permanent bid aircraft plus 8% for active spares) with daily utilization rate measured monthly of no less than 10 hours, whether or not the Company is in Chapter 11. The Minimum Active Fleet number may be reduced only as made necessary by a new force majeure event, which includes acts of terrorism with a material adverse impact on commercial aviation.

MDA Small Jets/Regional Jets:

The Company will operate MidAtlantic (MDA) as a separate division within US Airways, Inc.
MDA training shall be subject to Article 1 (Recognition/Scope) of the Agreement and other provisions of the Agreement, as amended by the Restructuring Agreement dated August 26, 2002 and by this Letter.
The Company may elect to use FCTIs who perform MDA training to conduct training for non- wholly owned affiliates.
The Company agrees to meet with the TWU no later than March 1, 2003 with the appropriate personnel to meet and discuss the economic and operational feasibility of FCTIs performing Small Jet work for the wholly-owned affiliates (Piedmont, Allegheny, and PSA).

HEALTH AND WELFARE:

See Attachments (Health and Welfare Benefit Changes TWU (FCTIs) dated December 16, 2002, pages 1 – 2; Exhibit A dated December 10, 2002; Attachments B1 – B6 dated December 18, 2002)

ENHANCED PROFIT SHARING:

Enhanced profit sharing returns in exchange for participation in $200 million "Modified Restructuring Program" as follows:

Any year in which pre-tax profits exceed 7%, 50% of such profits in excess of 7% will be distributed to participating employees.
Capped at $100 million annually
Program continues through status quo period
100% paid as lump sum payments
Pre-tax defined as excluding unusual items

EQUITY PARTICIPATION:

In the event that the TWU elects to take the stock option plan in lieu of profit sharing from the previous Restructuring Agreement dated August 2002, the Accelerated vesting program in the ALPA Restructuring Agreement dated January 1, 2003 will apply.

WAR CONTINGENCY:

In the event that (a) the U.S. invades Iraq (meaning that the U.S. initiates a sustained aerial bombardment of those parts of Iraq that are not within the current no fly zone or introduces substantial numbers of ground troops into the territory of Iraq), or (b) there is an act of terrorism which in either event has a material adverse impact on commercial aviation, there will be an immediate 5% pay deferral for up to 18 months. The deferral will begin to be repaid starting in the first month following the end of the deferral and will continue to be repaid in as many monthly installments as were covered by the deferral. In the event that US Airways Group reports a pretax profit with respect to any quarter during which the pay deferral is in effect, the deferral will immediately stop and repayment will begin in the next month to continue for the same number of months as were included in the deferral.

TWU FEES AND EXPENSES:

In addition to the unpaid fees and expenses specified under the Restructuring Agreement, the Company shall pay reasonable and necessary TWU fees and expenses incurred through December 19, 2002 in connection with the negotiation of this Letter of Agreement, up to a maximum of $TBD.

RATIFICATION:

This Letter of Agreement must be ratified by the TWU Local 547 membership no later than December 31, 2002.

Attachment A-1
EFFECTIVE DATE: January 1, 2003

ARTICLE 4 Hours of Service/Scheduling

Paragraph G

Events not covered by the initial bid process:

Will first be assigned to Reserve instructors if no premium pay will be incurred.

Will then be assigned to an employee on an Administrative Day with the lowest amount of Instructional time if no premium pay will be incurred. The instructional time computation for this procedure will include instructional time credit (Six hours) for paid days off.

Then the Company may de-link events to meet its needs and assign the work to the employee on an Administrative Day with the lowest Instructional time. The instructional time computation for this procedure will include instructional time credit (Six hours) for paid days off.

If premium pay will be incurred, the work will be offered by the premium time list.

Paragraph I

An employee shall not bid more than five consecutive workdays (excluding Company established premium time events). Paid days off are not included when determining consecutive workdays.

Attachment
on
Health & Welfare Benefit Changes TWU (FCTIs)
December 16, 2002

Health & Welfare Benefit Changes

Medical/Dental Plan

Plan design
Eliminate cross application of in-and out-of-network expenses toward satisfaction of deductibles and out-of-pocket maximums
Reduce out-of-network claim reimbursement level from 90% to 80% R&C
Prescription drug copays Increase brand non-formulary copay from $30 to $35 for retail ($70 for mail order)
Copays, deductibles, Out-Of-Pocket (OOP) maximums (Attachment A)
Fixed dollar amounts for 2003 - 2005
Updated amounts in 2006 based on current 2006 projected amount
2006 amounts fixed through 2008
Employee Contributions (Attachment B)
Fixed dollar contributions through the end of the contract
Premium equivalents reflect updated cost basis, trend and plan design
Separate premium equivalents for Active, Pre-65 retirees, and Post-65 retirees
Medical
Actives and Inactives - 7% of expected cost for 80/60 plan; full buy up to 90/70 and 100/80 plan
Pre-65 and Post 65 Retirees - 15% of expected cost for 80/60 plan; full buy to 90/70 or 100/80 plan
Dental
Actives, Inactives, Pre-65 Retirees - 15% of expected cost
Post-65 Retirees - 100% of expected cost

Retiree Life Insurance

Pre-65 retirees life insurance

Employee Group	Current	Proposed
Basic Life	Employee Paid – amount of insurance in effect at retirement may be continued by retiree	Continue voluntary benefit: eliminate subsidy
Dependent Life	Employee Paid – amount in effect at retirement may be continued by retiree	Continue voluntary benefit: eliminate subsidy

Active premiums currently subsidize retiree rates

Post-65 retiree death benefit

Current	Proposed
Uninsured death benefit equal to: Class 1 (FT) – if retirement date is from 10/01/79 through 06/30/89 benefit amount is $5,000; if retirement date is on or after 07/01/89 benefit amount is $7,000 Class 2 (PT) - $3,500	Eliminate benefit for all post-65 retirees

MEDICAL ATTACHMENT A [DEDUCTIBILES, COPAYS AND OUT-OF-POCKET MAXIMUMS (PAGE 1 OF 2)]

Year			2003		2004		2005
Deductible (single/family)			Single	Family	Single	Family	Single	Family
	80/60 PPO Plan
		In-network	$300	$600	$300	$600	$300	$600
		Out-of-network	$600	$1,200	$600	$1,200	$600	$1,200
	90/70 PPO Plan
		In-network	$150	$300	$150	$300	$150	$300
		Out-of-network	$300	$600	$300	$600	$300	$600
	100/800 PPO Plan
		In-network	$150	$300	$150	$300	$150	$300
		Out-of-network	$300	$600	$300	$600	$300	$600
OOP Maximum (single/family)			Single	Family	Single	Family	Single	Family
	80/60 PPO Plan
		In-network	$2,000	$4,000	$2,000	$4,000	$2,000	$4,000
		Out-of-network	$4,000	$8,000	$4,000	$8,000	$4,000	$8,000
	90/70 PPO Plan
		In-network	$1,000	$2,000	$1,000	$2,000	$1,000	$2,000
		Out-of-network	$2,000	$4,000	$2,000	$4,000	$2,000	$4,000
	100/800 PPO Plan
		In-network	N/A	N/A	N/A	N/A	N/A	N/A
		Out-of-network	$2,000	$4,000	$2,000	$4,000	$2,000	$4,000
Office Copays
	Primary Care Physician		$15		$15		$15
	Specialist		$25		$25		$25
Prescription Drug Copay
	Retail
		Generic	$10		$10		$10
		Formulary Brand	$20		$20		$20
		Nonformulary Brand	$35		$35		$35
	Mail Order
		Generic	$20		$20		$20
		Formulary Brand	$40		$40		$40
		Nonformulary Brand	$70		$70		$70

MEDICAL ATTACHMENT A [DEDUCTIBILES, COPAYS AND OUT-OF-POCKET MAXIMUMS (PAGE 2 OF 2)]

Year			2006		2007		2008
Deductible (single/family)			Single	Family	Single	Family	Single	Family
	80/60 PPO Plan
		In-network	$450	$900	$450	$900	$450	$900
		Out-of-network	$900	$1,800	$900	$1,800	$900	$1,800
	90/70 PPO Plan
		In-network	$225	$450	$225	$450	$225	$450
		Out-of-network	$450	$900	$450	$900	$450	$900
	100/800 PPO Plan
		In-network	$225	$450	$225	$450	$225	$450
		Out-of-network	$450	$900	$450	$900	$450	$900
OOP Maximum (single/family)			Single	Family	Single	Family	Single	Family
	80/60 PPO Plan
		In-network	$3,000	$6,000	$3,000	$6,000	$3,000	$6,000
		Out-of-network	$6,000	$12,000	$6,000	$12,000	$6,000	$12,000
	90/70 PPO Plan
		In-network	$1,500	$3,000	$1,500	$3,000	$1,500	$3,000
		Out-of-network	$3,000	$6,000	$3,000	$6,000	$3,000	$6,000
	100/800 PPO Plan
		In-network	N/A	N/A	N/A	N/A	N/A	N/A
		Out-of-network	$3,000	$6,000	$3,000	$6,000	$3,000	$6,000
Office Copays
	Primary Care Physician		$25		$25		$25
	Specialist		$40		$40		$40
Prescription Drug Copay
	Retail
		Generic	$15		$15		$15
		Formulary Brand	$30		$30		$30
		Nonformulary Brand	$50		$50		$50
	Mail Order
		Generic	$30		$30		$30
		Formulary Brand	$60		$60		$60
		Nonformulary Brand	$100		$100		$100

Medical Attachment B1 Option 1 [Eligible Actives & Inactives- All Groups (except ALPA and Non-Contract)]

		PPO 80/60 - Flat 7.0%
2003	Trend	Ee	Ee + Sp	Ee+ Ch	Ee + Fam
Contribution Base		230.06	460.12	437.59	760.15
Employee Contribution		16.00	32.00	31.00	53.00
2004
Contribution Base	15%	264.57	529.14	503.23	874.17
Employee Contribution	15%	19.00	37.00	35.00	61.00
2005
Contribution Base	15%	304.26	608.51	578.71	1,005.30
Employee Contribution	15%	21.00	43.00	41.00	70.00
2006
Contribution Base	14%	337.73	675.45	642.37	1,115.88
Employee Contribution	14%	24.00	47.00	45.00	78.00
2007
Contribution Base	13%	381.63	763.26	725.88	1,260.94
Employee Contribution	13%	27.00	53.00	51.00	88.00
2008
Contribution Base	12%	427.43	854.85	812.99	1,412.25
Employee Contribution	12%	30.00	60.00	57.00	99.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B1 Option 2 [Eligible Actives & Inactives- All Groups (except ALPA and Non-Contract)]

		PPO 90/70 - Flat 14.0%
2003	Trend	Ee	Ee + Sp	Ee+ Ch	Ee + Fam
Contribution Base		249.03	498.07	473.16	823.00
Employee Contribution		35.00	70.00	66.00	116.00
2004
Contribution Base	15%	286.39	572.78	544.14	946.45
Employee Contribution	15%	40.00	80.00	76.00	133.00
2005
Contribution Base	15%	329.35	658.70	625.76	1,088.42
Employee Contribution	15%	46.00	93.00	88.00	153.00
2006
Contribution Base	14%	365.58	731.16	694.59	1,208.15
Employee Contribution	14%	51.00	103.00	98.00	170.00
2007
Contribution Base	13%	413.11	826.21	784.89	1,365.21
Employee Contribution	13%	58.00	116.00	110.00	192.00
2008
Contribution Base	12%	462.68	925.36	879.08	1,529.04
Employee Contribution	12%	65.00	130.00	123.00	215.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B1 Option 3 [Eligible Actives & Inactives- All Groups (except ALPA and Non-Contract)]

		PPO 100/80 - Flat 19.4%
2003	Trend	Ee	Ee + Sp	Ee+ Ch	Ee + Fam
Contribution Base		265.64	530.09	504.00	876.36
Employee Contribution		52.00	103.00	98.00	170.00
2004
Contribution Base	15%	305.48	609.60	579.60	1,007.81
Employee Contribution	15%	59.00	118.00	113.00	196.00
2005
Contribution Base	15%	351.30	701.04	666.54	1,158.98
Employee Contribution	15%	68.00	136.00	129.00	225.00
2006
Contribution Base	14%	389.94	778.15	739.86	1,286.47
Employee Contribution	14%	76.00	151.00	144.00	250.00
2007
Contribution Base	13%	440.63	879.31	836.04	1,453.71
Employee Contribution	13%	86.00	171.00	162.00	282.00
2008
Contribution Base	12%	493.51	984.83	936.36	1,628.16
Employee Contribution	12%	96.00	191.00	182.00	316.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B2 Option 1 [Eligible Pre-65 Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

		PPO 80/60 - Flat 15.0%
2003	Trend	Ee	Ee + Sp	Ee+ Ch	Ee + Fam
Contribution Base		419.82	839.64	798.46	1387.58
Employee Contribution		63.00	126.00	120.00	208.00
2004
Contribution Base	19%	482.79	965.59	918.23	1,595.72
Employee Contribution	19%	72.00	145.00	138.00	239.00
2005
Contribution Base	19%	555.21	1,110.43	1,055.96	1,835.08
Employee Contribution	19%	83.00	167.00	158.00	275.00
2006
Contribution Base	18%	616.28	1,232.58	1,172.12	2,036.94
Employee Contribution	18%	92.00	185.00	176.00	306.00
2007
Contribution Base	17%	696.40	1,392.82	1,324.50	2,301.74
Employee Contribution	17%	104.00	209.00	199.00	345.00
2008
Contribution Base	16%	779.97	1,559.96	1,483.44	2,577.95
Employee Contribution		117.00	234.00	223.00	387.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B2 Option 2 [Eligible Pre-65 Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

	PPO 90/70 - Flat 21.6%
2003	Trend	Ee	Ee + Sp	Ee+ Ch	Ee + Fam
Contribution Base		455.28	909.42	864.81	1503.12
Employee Contribution		98.00	197.00	187.00	325.00
2004
Contribution Base	19%	523.58	1,045.84	994.53	1,728.59
Employee Contribution		113.00	226.00	215.00	374.00
2005
Contribution Base	19%	602.12	1,202.72	1,143.71	1,987.88
Employee Contribution		130.00	260.00	247.00	430.00
2006
Contribution Base	18%	668.35	1,335.02	1,269.52	2,206.55
Employee Contribution		145.00	289.00	275.00	477.00
2007
Contribution Base	17%	755.24	1,508.57	1,434.56	2,493.40
Employee Contribution		163.00	326.00	310.00	539.00
2008
Contribution Base	16%	845.87	1,689.60	1,606.71	2,792.61
Employee Contribution		183.00	365.00	347.00	604.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B2 Option 3 [Eligible Pre-65 Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

		PPO 100/80 - Flat 26.4%
2003	Trend	Ee	Ee + Sp	Ee+ Ch	Ee + Fam
Contribution Base		485.03	970.05	920.86	1601.50
Employee Contribution		128.00	256.00	243.00	423.00
2004
Contribution Base	19%	557.78	1,115.56	1,058.99	1,841.72
Employee Contribution	19%	147.00	295.00	280.00	487.00
2005
Contribution Base	19%	641.45	1,282.89	1,217.84	2,117.98
Employee Contribution	19%	170.00	339.00	322.00	560.00
2006
Contribution Base	18%	712.01	1,424.01	1,351.80	2,350.96
Employee Contribution	18%	188.00	376.00	357.00	621.00
2007
Contribution Base	17%	804.57	1,609.13	1,527.53	2,656.58
Employee Contribution	17%	213.00	425.00	404.00	702.00
2008
Contribution Base	16%	901.12	1,802.23	1,710.83	2,975.37
Employee Contribution	16%	238.00	476.00	452.00	786.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B3 Option 1 [Eligible Post-65 Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

		80% Indemnity
		Contribution = flat 15.0%
2003	Trend	Ee	Ee + Fam
Contribution Base		181.55	363.09
Employee Contribution		27.00	54.00
2004
Contribution Base	19%	216.04	432.08
Employee Contribution		32.00	65.00
2005
Contribution Base	19%	257.09	514.18
Employee Contribution		39.00	77.00
2006
Contribution Base	18%	295.65	591.31
Employee Contribution		44.00	89.00
2007
Contribution Base	17%	345.91	691.83
Employee Contribution		52.00	104.00
2008
Contribution Base	16%	401.26	802.52
Employee Contribution		60.00	120.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B3 Option 2 [Eligible Post-65 Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

		90% Indemnity
		Contribution = flat 23.5%
2003	Trend	Ee	Ee + Fam
Contribution Base		202.00	404.00
Employee Contribution		47.00	95.00
2004
Contribution Base	19%	240.38	480.76
Employee Contribution		56.00	113.00
2005
Contribution Base	19%	286.05	572.10
Employee Contribution		67.00	134.00
2006
Contribution Base	18%	328.96	657.92
Employee Contribution		77.00	155.00
2007
Contribution Base	17%	384.88	769.77
Employee Contribution		90.00	181.00
2008
Contribution Base	16%	446.46	892.93
Employee Contribution		105.00	210.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B3 Option 3 [Eligible Post-65 Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

		100% Indemnity
		Contribution = flat 36.7%
2003	Trend	Ee	Ee + Fam
Contribution Base		244.00	488.00
Employee Contribution		89.00	179.00
2004
Contribution Base	19%	290.36	580.72
Employee Contribution		106.00	213.00
2005
Contribution Base	19%	345.53	691.06
Employee Contribution		127.00	253.00
2006
Contribution Base	18%	397.36	794.72
Employee Contribution		146.00	291.00
2007
Contribution Base	17%	464.91	929.82
Employee Contribution		170.00	341.00
2008
Contribution Base	16%	539.30	1,078.59
Employee Contribution		198.00	395.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.
2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement
3) Trends in 2006 were reduced by 3% to avoid double counting due to the indexing of Co-Pays, Deductibles, and OOP maximums.

Medical Attachment B4 Option 1 [Split Families- Eligible Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

80% Plan

Single Coverage

E+S Coverage

E+C Coverage

Family Coverage

Ret 65+

Ret <65

Year

Ret 65+

Ret <65

Ret 65+

Ret <65

Ret 65+

Ret <65

Sps <65

Sps 65+

Sps <65

Sps 65+

2003

27.00

63.00

90.00

120.00

147.00

117.00

208.00

147.00

2004

32.00

72.00

104.00

138.00

170.00

137.00

239.00

170.00

2005

39.00

83.00

122.00

158.00

197.00

160.00

275.00

197.00

2006

44.00

92.00

136.00

176.00

220.00

181.00

306.00

220.00

2007

52.00

104.00

156.00

199.00

251.00

208.00

345.00

251.00

2008

60.00

117.00

177.00

223.00

283.00

237.00

387.00

283.00

Notes:

1) Eligible Part Time rates are two times Full Time rates.

2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement

Medical Attachment B4 Option 2 [Split Families- Eligible Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

90% Plan

Single Coverage

E+S Coverage

E+C Coverage

Family Coverage

Ret 65+

Ret <65

Year

Ret 65+

Ret <65

Ret 65+

Ret <65

Ret 65+

Ret <65

Sps <65

Sps 65+

Sps <65

Sps 65+

2003

47.00

98.00

145.00

187.00

234.00

193.00

325.00

234.00

2004

56.00

113.00

169.00

215.00

271.00

226.00

374.00

271.00

2005

67.00

130.00

197.00

247.00

314.00

264.00

430.00

314.00

2006

77.00

145.00

222.00

275.00

352.00

300.00

477.00

352.00

2007

90.00

163.00

253.00

310.00

400.00

344.00

539.00

400.00

2008

105.00

183.00

288.00

347.00

452.00

393.00

604.00

452.00

Notes:

1) Eligible Part Time rates are two times Full Time rates.

2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement

Medical Attachment B4 Option 3 [Split Families- Eligible Retirees- Full Time- All Groups (except ALPA and Non-Contract)]

100% Plan

Single Coverage

E+S Coverage

E+C Coverage

Family Coverage

Ret 65+

Ret <65

Year

Ret 65+

Ret <65

Ret 65+

Ret <65

Ret 65+

Ret <65

Sps <65

Sps 65+

Sps <65

Sps 65+

2003

89.00

128.00

217.00

243.00

332.00

307.00

423.00

332.00

2004

106.00

147.00

253.00

280.00

386.00

360.00

487.00

386.00

2005

127.00

170.00

297.00

322.00

449.00

423.00

560.00

449.00

2006

146.00

188.00

334.00

357.00

503.00

479.00

621.00

503.00

2007

170.00

213.00

383.00

404.00

574.00

554.00

702.00

574.00

2008

198.00

238.00

436.00

452.00

650.00

633.00

786.00

650.00

Notes:

1) Eligible Part Time rates are two times Full Time rates.

2) Any applicable Defined Dollar Benefit (DDB) caps are suspended until the day prior to the expiration of the Collective Bargaining Agreement

Medical Attachment B5 [Managed Dental Plan-All Groups]

		Eligible Full-time Actives, Inactives & Pre-65 Retirees Eligible Post 65 Retirees
		Flat 15.0% Employee Contribution 100% Contribution
2003	Trend	Ee	Ee + Sp	Ee+ Ch	Ee + Fam	Ee	Ee + Sp
Contribution Base		26.00	52.00	49.00	86.00	26.00	52.00
Employee Contribution		3.90	7.80	7.40	12.90	26.00	52.00
2004
Contribution Base	6%	28.00	55.00	52.00	91.00	28.00	55.00
Employee Contribution	6%	4.20	8.30	7.80	13.70	28.00	55.00
2005
Contribution Base	6%	30.00	58.00	55.00	96.00	30.00	58.00
Employee Contribution	6%	4.50	8.70	8.30	14.40	30.00	58.00
2006
Contribution Base	6%	32.00	61.00	58.00	102.00	32.00	61.00
Employee Contribution	6%	4.80	9.20	8.70	15.30	32.00	61.00
2007
Contribution Base	6%	34.00	65.00	61.00	108.00	34.00	65.00
Employee Contribution	6%	5.10	9.80	9.20	16.20	34.00	65.00
2008
Contribution Base	6%	36.00	69.00	65.00	114.00	36.00	69.00
Employee Contribution	6%	5.40	10.40	9.80	17.10	36.00	69.00
Notes:
1) Eligible Part Time rates are two times Full Time rates.

Medical Attachment B6 [Managed Dental Plan- Split Family Rates- All Groups-Full Time Employees]

	Single Coverage		E+S Coverage		E+C Coverage		Family Coverage
	Single Coverage		E+S Coverage		E+C Coverage		Ret 65+	Ret 65+	Ret <65	Ret <65
Year	Ret 65+	Ret <65	Ret 65+	Ret <65	Ret 65+	Ret <65	Sps <65	Sps 65+	Sps <65	Sps 65+
2003	26.00	3.90	29.90	29.90	29.90	7.40	33.40	55.90	12.90	33.40
2004	28.00	4.20	32.20	32.20	32.20	7.80	35.80	60.20	13.70	35.80
2005	30.00	4.50	34.50	34.50	34.50	8.30	38.30	64.50	14.40	38.30
2006	32.00	4.80	36.80	36.80	36.80	8.70	40.70	68.80	15.30	40.70
2007	34.00	5.10	39.10	39.10	39.10	9.20	43.20	73.10	16.20	43.20
2008	36.00	5.40	41.40	41.40	41.40	9.80	45.80	77.40	17.10	45.80
Notes:
1) Eligible Part Time rates are two times Full Time rates