Monthly Contribution for Post-Medicare Coverage. Eligible individuals must pay a monthly contribution for the cost of Post-Medicare coverage. For employees who retire on or after July 1, 2003 but before January 1, 2006, the monthly contribution is equal to 50% of the full cost of the coverage. The retiree share of the cost will not increase after the employee retires. For employees who retire on or after January 1, 2006, the monthly contribution is equal to the total projected cost of such post- Medicare coverage for the calendar year, per person, minus a Company contribution equal to $90 per month per person covered. The retiree share of the cost will increase, without limit, after the employee retires.
Monthly Contribution for Post-Medicare Coverage. Eligible individuals must pay a monthly contribution for the cost of Post-Medicare coverage. The monthly contribution is equal to the total projected cost of such Post-Medicare Plan coverage for the calendar year, per person, minus a Company contribution equal to $90 per month per person covered. The total projected costs of the Post-Medicare options for any calendar year will be determined based on data for all Company Post-Medicare retirees. The Company will establish a reasonable methodology to determine the total projected costs of the Post-Medicare options, which methodology will be consistent with the methodology presently used to determine the projected costs of current retired pilots' Post-Medicare coverage; any changes to that methodology will be subject to ALPA's review and will be approved by ALPA if the changes are reasonable. Provided, however, the Company may, without ALPA's approval, choose to use a look back period of fewer than 60 months, but not less than 24 months once the Company has at least 24 months of experience data for the Post-Medicare coverage plan(s). By September 1, 2003 and September 1 of each year thereafter, the Company will determine the total projected costs for the following calendar year, pursuant to the established methodology, and will provide to ALPA the data upon which such determination is based.
