Eligibility for Coverage

To receive coverage under this plan, you must be an active, full-time employee working at least 40 hours a week or part-time working at least 20 hours a week.

Each employee (1) who is member of the Transport Workers Union of America, AFL-CIO, (2) who is less than age 70 and (3) who is employed by American Airlines, Inc., in the following classifications is eligible:

• Payroll Type 1 Employee

• Payroll Type 2 Employee

• Payroll Type 3 Employee

• Payroll Type 5 Employee

• Flight Dispatcher

• Dispatcher's Assistant

• Meteorologist

• Instructor

• Technician

• Guards

• Union Officers on Leave

Eligibility Waiting Period

All current employees who meet the eligibility requirements are eligible to participate in this program immediately.

Employees who join the company after the date this program becomes effective are eligible to participate on January 1st or July 1st that is the same as or next following the completion of 1 year of active service.

You can enroll anytime within 31 days following the date you become eligible for coverage, or during the open enrollment period.  If you decide to enroll later, you will have to provide acceptable evidence of good health.  This may require a medical exam, at your cost.

You will be asked to complete the enrollment form, indicating your wish to participate and your authorization for payroll deductions.

When coverage take effect

If you meet these eligibility requirements, your coverage takes effect on the later of the date your become eligible, the date we receive your completed enrollment form, or the date you authorize any necessary payroll deductions.

If you have to submit evidence of good health, your coverage takes effect on the date we agree, in writing, to cover you.  If you're not actively at work on the date your coverage would otherwise take effect, you'll be covered on the date you return to work.

How Disability is Defined

To receive benefits under this plan, you must be disabled (as defined below) as a result of a covered injury or sickness, and you must be under the appropriate care of a licensed, practicing physician who is qualified to treat your disability.

Disabled means that, because of a covered injury or sickness, you are unable to perform all of the material duties of your regular occupation.  After benefits have been payable for 24 months, you are disabled if your injury or sickness makes you unable to perform all the material duties of any occupation for which you are (or may reasonably become) qualified by education, training or experience.

Injury means any accidental loss or bodily harm

Sickness means any physical or mental illness.

Benefit Waiting Period

Before collecting benefits, you must satisfy a benefit waiting period following your date of disability.  For your plan, this period is 6 months of continuous disability.

Benefits

For Full-time Employees:

This plan pays a benefit of up to 50% of your monthly covered earnings up to a maximum of $4,000 per month.

For Full-time Employees:
This plan pays a benefit up to 50% of your monthly covered earnings up to a maximum of $500 per month.

Your benefit amount is reduced by any amounts payable to you by any of the sources listed under the "Effects of Other Income Benefits" section.

Covered earning means your annual wages or salary, excluding earning received from overtime pay, bonus, commission, premium pay, shift differential, approved expenses, and other extra compensation.

Return-to-Work Incentives

This plan includes benefits to encourage your to return to work as soon as medically feasible.  These return-to-work incentives offer you both the opportunity and the encouragement to successfully return to productive employment - without risking your eligibility for income replacement benefits under this plan.

Trial Work Days

If you attempt to return to work before completing the benefit waiting period, but are unable to remain actively at work, you will not have to begin a new benefit waiting period, provided you have not worked more that 14 days during the benefit waiting period.  Example: You can work up to 14 days during the waiting period without triggering a new waiting period if you cannot continue to work.  The length of the waiting period is extended by the number of days you work.

Recurrent Disability Feature

If you return to work after receiving benefits under this plan, then again become disabled from the same or related cause, you will not have to fulfill another benefit waiting period, unless you have worked more than 3 consecutive months.  The disability would be considered a continuation of your initial claim.  If the second disability occurs after 3 months, or results from a cause unrelated to the first and you have returned to work for at least 1 full day, you must file a new claim and fulfill a new benefit waiting period.

Rehabilitation Services

This plan includes rehabilitation benefits to encourage qualified candidates to return to work without losing all of their income replacement benefits.

During your rehabilitation, we continue to pay your regular benefit, reduced by 50% of your work earnings (or more, if necessary to ensure that the total of all benefits received, plus earning, does not exceed 75% of your covered earnings),]

Effect of Other Income Benefits

For Part-Time Employees:

Disability insurance is designed to help you meet your financial obligations, if you cannot work as a result of a covered injury or sickness.  However, this plan is structured to prevent your total benefits and post-disability earnings from equaling or exceeding pre-disability earnings.  Therefore, we reduce this plan's benefits by an amount equal to any Social Security retirement and/or disability benefits payable to you, your dependents or a qualified third party on behalf of you or your dependents.

For Full-Time Employees:

Disability insurance is designed to help you meet your financial obligations, if you cannot work as a result of a covered injury or sickness.  However, this plan is structured to prevent your total benefits and post-disability earnings from equaling or exceeding pre-disability earnings.  Therefore, we reduce this plan's benefits by an amount equal to your Social Security retirement and/or disability benefits, plus any income payable to your from other sources listed below, plus any dependent's Social Security benefit payable on your account of your disability, until these amounts combined total no more than 80% of your indexed covered earnings.

Other income sources that WILL reduce your benefits under this plan include:

• Amounts payable under local, state/provincial or federal government disability or retirement plan or law, or other state or federal laws, including those governing workers' compensation (including temporary or permanent disability benefits) and occupational disease.  This includes damages, compromises or settlements paid in place of such benefits.
• Amounts payable by any franchise or group insurance or similar plan
• Benefits payable by a Canadian and/or Quebec provincial pension plan
• Amounts of any wage or salary earned for work performed.

Income sources that WILL NOT reduce your benefits under this plan are:

• Benefits paid by personal individual disability income policies
• Individual deferred compensation agreements
• Employee savings plans, including thrift plans, stock options or stock bonuses
• Individual retirement funds, such as IRA or 401(k) plans
• Profit-sharing, investment or other retirement or savings plans maintained in addition to an employer-sponsor pension plan.

Minimum Benefit

However, your benefits from this plan will never be less than either $100 or 10% of your covered earnings per month, whichever is greater.  If there is an overpayment due, this benefit may be reduced to recover the overpayment.

Benefit Period

Once you qualify for benefits under this plan, you continue to receive them until the end of the benefit period, or until you not longer qualify for benefits, whichever occurs first.  (We will ask you to periodically furnish proof of your continuing disability.)

This plan pays long-term benefits monthly.

Your benefit period  begins on the first day after you complete your benefit waiting period.  And, should you remain disabled, your benefits continue according to the following schedule, depending on your age at the time you become disabled.

Benefits payable under this plan will terminate on the earliest of any date indicated below:

• the date we determine you are no longer disabled
• the date the maximum benefit period ends (see above schedule)
• the date you are no longer under the care of a qualified physician
• the date you first receive any retirement benefits other than a monthly disability pension benefit under the company Retirement Benefit Plan
• the date you die

Limitations

This plan provides only limited benefits for some conditions and excludes others from coverage, as listed below.

Pre-Existing Conditions

Pre-existing conditions are those for which you have incurred expenses, taken prescription drugs or medicines, received medical treatment, care or services, (including diagnostic measures), or consulted a physician during the 3 months prior to the most recent effective date of insurance.

This plan does not pay benefits for any disability resulting from a pre-existing condition unless the disability occurs after you have been insured under this plan for 12 consecutive months. 

Limitations to Mental/Nervous Conditions and Drug/Alcohol Abuse

This plan limits benefits for disabilities caused by or contributed to by one or more of the following conditions:

• Alcoholism or alcohol abuse
• Drug addition or abuse
• Mental illness

Benefits for these conditions have a lifetime limit of 24 months for outpatient treatment.  The plan also pays benefits during periods of hospital confinement for these conditions, as long as hospitalization last at least 14 consecutive days.  We will pay a benefit for up to 3 months. 

Exclusions

This plan does not pay benefits for a disability which results, directly or indirectly, from any of the following:

• suicide, attempted suicide, or whenever you injure yourself on purpose
• war or any act of war, whether or not declared
• commission or attempt to commit a felony or high misdemeanor
• engagement in an illegal occupation
• resistance to armed aggression

Further, no benefits will be payable for any periods during which you are not under the care of a qualified physician.

Termination of Coverage

Your coverage will end on the earliest of any of the following dates:

• the date you're no longer an employee of the employer sponsoring the plan
• the date you are no longer a member of an eligible class of employees
• the date the plan is terminated by the insurer or the employer
• the day after the last date for which premium has been paid by you or the employer
• the last day of the month following the date you turn age 70

If you are disabled and receiving benefits under this plan, your benefits and coverage will continue until the expiration of your benefit period, or until you no longer qualify for benefits under the plan , whichever occurs first.

The cost of this insurance is paid for by you.

Example:

Costs are subject to change.

The rate per $100 of the first $1,250.00 of your monthly covered earnings is $3.856 per bi-weekly pay period and $.646 for your monthly covered earnings in excess of $1,250.00.  Your monthly covered earnings cannot exceed $8,000.

Example:

Costs are subject to change.

The rate per $100 of the first $1,250 of your monthly covered earnings is $.608 per bi-weekly pay period and $1.275 for your monthly covered earnings in excess of $1,250.00.  Your monthly covered earnings cannot exceed $8,000.

Costs subject to change.

(Please Note: All benefits in this plan are paid on a monthly basis, regardless of your pay period.)