Q. Can you please explain accelerated vesting to me under Sec 29 C. #3? Aren’t you 100% vested after 5 years service as a fa? If so, why is there a need for #3? Unless correct me if I am wrong an example -an FA is in the job for 2 years but worked for the company in a different position for 10 years and at 61 1/2 they would get full vesting but if less than 60 years, or less than 10 years, would only be vested at 40% for her 2 years as a FA. Am I understanding correctly?
A. Section 29 of the L-AS CBA: Profit Sharing and Retirement specifies in 29.C. what is the vesting schedule for a Flight Attendant’s 401(k) company matching contributions. This schedule is based on years of service as a Flight Attendant (often referred to as Occupational Seniority). A Flight Attendant is fully vested (100%) at five (5) or more years of service as a Flight Attendant (of Occupational Seniority).
The language in Section 29.D. references when a Flight Attendant may receive accelerated vesting in their 401(k) company matching contributions. Specifically number three (29.D.3.) states that when a Flight Attendant has prior company service with Alaska Airlines and is either 60 or 611/2 years of age, then s/he would have accelerated vesting and her/his Company Seniority of either (12 or 10 years respectively) would allow her/him to be 100% vested.
- ACCELERATED VESTING
A Member will be fully vested and have a non-forfeitable interest in the balance credited to her/his Matching Contributions Account if:
- The employee becomes medically disabled; or
- The employee retires at or after age sixty-five (65); or
- The employee retires at or after age sixty (60) with a minimum twelve (12) years of service with the Company Seniority, or at or after age sixty-one and one-half (611⁄2) and a minimum of ten (10) years of service with the Company Seniority.”
In your scenario above if a Flight Attendant had worked for 2 years (2 years of Occupational Seniority) and had prior company service but was either younger than 60/61 or did not have 12/10 years of Company Seniority then s/he would only be 40% vested in tthe 401k company matching contributions.
Note: A Flight Attendant is always 100% vested in her/his personal 401(k) contributions.
