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AFA Debrief : April 19, 2024

Date: April 19, 2024

AFA Debrief - April 19, 2024

  • Lump Sum Interest Rates for CARP - July 1, 2024 - December 1, 2024
  • United Master Executive Council Spring Meeting Recap
  • AFA Welcomes Class 2404!

Lump Sum Interest Rates for CARP – July 1, 2024 – December 1, 2024

The new interest rates for the Continental Retirement Plan (CARP) are now available on Your Benefits Resources (YBR). Estimates run with a benefit commencement date of 7/1/2024 - 12/1/2024 will have the new rates applied. Rate changes may affect when eligible Members may decide to take their retirement distributions.

The interest rates for lump sums payable from 7/1/2024 to 12/31/2024 are 4.97%, 5.22% and 5.37%. These are based on the IRS published three “segmented” interest rates each month. These are the February rates which were published in March 2024. These new rates are posted on YBR as of March 29th and employees are able to run estimates now.

As a result of these rate published rate changes, lump sums paid in the second half of 2024 will be slightly higher than the lump sums paid in the first half of 2024.

The following is a sample of the estimated impacts:

CARP --- A lump sum of $100,000 based on the rates and mortality table for the first half of 2024 would be equal to the following amounts using the rates and mortality table for the second half of 2024:

 

Age 50 retiree = $103,000 (3.0% higher)

Age 55 retiree = $103,000 (3.0% higher)

Age 60 retiree = $103,000 (3.0% higher)

Age 65 retiree = $102,000 (2.0% higher)

 

Retirement Estimates for Commencements January 1, 2025 or later

Interest rates that are used to project retirement in the future will use the higher of an average of the segmented rates during the 24-month period from March 2022 through February 2024 or the most recent rates published by the Plan (February, 2024 rates, published in March, 2024), which may or may not be reflective of current segmented rates

Since the actual interest rates for these projections are currently unknown, the system will also show estimated lump sum amounts using three segment rates that are each 0.5% or 1.0% higher or lower than the 24-month average rates. The actual interest rates that will be used to calculate lump sums will be based on the interest rates in effect at the time benefit is commenced. 


United Master Executive Council Spring Meeting Recap

On Thursday, the United Master Executive Council concluded the Spring Regular MEC Meeting in Chicago. This was an incredible opportunity to connect the leadership of our Union from across the system with Members.

Over the three-day meeting, the MEC and members in attendance participated in the democracy of our Union. MEC Officers took time to report on the current issues facing our workforce, including a financial outlook on United. Several committees, including three members of the Negotiating Committee, were also present to give reports and updates on the work of the past year and improvements they are striving for to improve the quality of life for all Flight Attendants.

For additional information on the Spring 2024 MEC Meeting, you can visit unitedafa.org.

We extend our gratitude to AFA Leadership and all the Members who attended this past week. We look forward to seeing everyone at our next MEC Meeting July 16-18th, which will be hosted in Chicago.

MEC Meetings are held quarterly, and Members who are available to attend are always welcome to join.


AFA Welcomes Class 2404!

Every time a new Flight Attendant joins our career, they bring with them their unique talents and abilities, further strengthening our profession and our Union. On behalf of United AFA, we would like to extend a warm welcome to the newest Members of our Flight Attendant family, Class 2404!

Flight Attendants from 2404 will be based at our domiciles in DEN, SFO, IAD, and EWR. We look forward to helping them as they begin this incredible career.

As you meet new Flight Attendants on the line, please remember that they are on probation. Connect them with the most accurate information to support them as they begin their careers by directing them to their AFA Local Council for assistance on Contractual issues.

If you are interested in supporting our newest Members, reach out to your local council to see how you can be a part of shaping their early careers as an AFA volunteer!

 

Reminders:

APR - World Autism Awareness Month
APR - National Arab American Heritage Month
APR 22 - Passover Begins
MAY 2 - Quarterly Spring CBT Due
MAY 12 - Mother’s Day
MAY 20-22 - AFA BOD

  

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