Pilots who are retiring on or after April 8, 2026, through December 31, 2027 will see an increase to the Legacy Pension Plan’s final average earnings (FAE) to $340,000.

Pilots who were on property before June 29, 2026, and retire on or after January 1, 2028 will be able to choose from one of the following three options:

• Option 1: Legacy Pension Plan and PRSP
  • The FAE increase to $340,000.
  • The Company non-elective contribution to the PRSP will remain at 9% capped at IRS limits.
• Option 2: MBCBP and PRSP
  • The Legacy Pension Plan FAE increases to $290,000 and years of service are frozen as of December 31, 2027.
  • Effective January 1, 2028, pilot will participate in the MBCBP. The MBCBP Compensation Credit of 9% is uncapped and will increase to 10% effective January 1, 2029.
  • Effective January 1, 2028, the PRSP 9% uncapped Company non-elective contribution. Any Company non-elective contribution that are due to earnings over the IRS limits will be paid out as cash.
• Option 3: PRSP with Cash-Over-Cap
  • The Legacy Pension Plan FAE increases to $290,000 and years of service are frozen as of December 31, 2027.
  • Effective January 1, 2028, the PRSP Company non-elective contribution increases to 18% uncapped and increasing to 19% effective January 1, 2029. Any Company non-elective contribution due to pilots on earnings over the IRS limits will be paid out as cash.

Yes, $340,000 for pilots retiring on or after April 8, 2026 through December 31, 2027. For Pilots retiring after December 31, 2027, it depends on their retirement election. For pilots who elect option 1, the FAE increased to $340,000. For pilots who elect option 2 or 3, the FAE increased to $290,000.

No. The Legacy Pension Plan will be closed to pilots hired on or after June 29, 2026. These pilots will participate in the Market Based Cash Balance Plan (MBCBP).

Absolutely yes. Pilots will not only continue to receive the 9% Company non-elective contribution to the PRSP, contributions to the MBCBP will not impact any PRSP limits. Additionally, the PRSP Company non-elective contributions and the MBCBP Compensation Credits will be uncapped.

The MBCBP is a tax qualified defined benefit plan subject to ERISA and the Internal Revenue Code. Similar to PRSP, the Company will make non-elective contributions to the plan. Interest is credited based on professionally managed investment returns of the portfolio. A notional account, rather than a personal account, is established for each participant, but there is one pension trust for all MBCBP assets.

Yes. Similar to the Legacy Pension Plan, the MBCBP is insured by the Pension Benefit Guaranty Corporation (PBGC).

Eligible Pilots with a DOH prior to June 29, 2026.

No. Pilots on the property prior to June 29, 2026, default into the Legacy Pension Plan and will have a one-time election available to transition to the MBCBP or Enhanced PRSP Benefit going forward.

Yes. Pilots with a date of hire on or after June 29, 2026, will have a starting balance equal to the sum of the Compensation Credits that would have accrued if the MBCBP had been established prior to the pilot’s date of hire.

Yes, pilots who have 25 years of credited service or more as of June 1, 2027 will receive an additional payment, paid by the Company through payroll equal to 7/12ths of the difference between 18% of 2027 compensation (not subject to the IRS limits) and 9% of 2027 compensation (subject to the IRS limits).

Years of credited service will be frozen as of December 31, 2027. Pension Plan accruals for the plan year will be pro-rated by 7/12ths (.58).

For example, if a pilot achieves an FAE of $290,000, their final YOS will be accrued at $3,383 instead of $5,800. [($290,000 x 2% = $5800) $5,800 x .58].

· The pilot will continue to accrue earnings towards the Legacy Pension Plan’s increased FAE cap of $290,000, while the pilot’s years of service under that plan will be frozen as of entry into the MBCBP (January 1, 2028).

The MBCBP is funded exclusively with Company contributions (“Compensation Credits”) based on the number of credit hours worked. Pilots will accrue a MBCBP benefit for every hour worked.

For example, if a pilot worked 1000 hours at $400 an hour in 2029, the Compensation Credits made by the Company for 2029 would be $40,000.

The Company will deposit the Compensation Credits to the MBCBP no later than the last day of the quarter in which the Compensation is earned (or the pilot’s benefit commencement date if earlier).

Yes. Pilots on LTD will receive Compensation Credits under the MBCBP. The Compensation Credit for pilots receiving LTD benefits will be based on a formula to provide 85% of the Compensation Credits received as an active pilot. The Compensation Credits for pilots on LTD will be based on the amount of their LTD benefit.

Example: A pilot on LTD in 2029 whose pre-disability income is $360,000 and is receiving a 60% LTD benefit of $216,000, will receive total MBCBP Compensation Credits of approximately $30,600 ($216,000 x 14.2%).

Yes, under Option 2 or Option 3, the Company contribution for pilots receiving LTD benefits will be based on a formula to provide 85% of the Company contribution received as an active pilot. The Compensation Credits for pilots on LTD will be based on the amount of their LTD benefit.

Example (Option 2): A pilot on LTD in 2029 whose pre-disability income is $360,000 and is receiving a 60% LTD benefit of $216,000, will receive total PRSP of approximately $27,540 ($216,000 x 12.8%).

Example (Option 3): A pilot on LTD in 2029 whose pre-disability income is $360,000 and is receiving a 60% LTD benefit of $216,000, will receive total Enhanced PRSP of approximately $58,140 ($216,000 x 26.9%).

Yes. Benefit Accruals for pilots on Military Leave will be consistent with USERRA and the Settlement Agreement on the Effect of Potential Crew Status Changes on Imputed Earnings and Signing Bonus Calculation dated December 9, 2008.

Benefit accruals under the MBCBP equal Compensation Credits plus Interest Credits.

The MBCBP will use a market-based Interest Credit (i.e., the return of the MBCBP investment portfolio), which will be applied at least monthly until the pilot’s benefit commencement date.

A pilot is 100% vested after three years of vesting service including pilots on LTD. Pilots on property prior to effective date of the MBCBP (January 1, 2025) with 3 years of vesting service in the Legacy Pension Plan will automatically be vested in the MBCBP.

No. There is not a years of service limit. All hours worked during all years of service will apply toward MBCBP benefit accruals.

No. There are no contractual compensation limits.

The funds are professionally managed. The Company will manage the portfolio with advice from their third-party investment consultants.

The MBCBP assets are held in a trust. This trust was negotiated to be separate from the current Legacy Pension Plan trust and will be a standalone MBCBP trust for the pilots.

The Company will consult with ALPA to develop an initial IPS.

Yes.

The MBCBP retirement benefit is the sum of the Compensation Credits and Interest Credits.

No. The MBCBP has a floor benefit guarantee (a.k.a. preservation of capital) which is the aggregate amount of all Compensation Credits credited to the account. The pilot’s retirement benefit cannot be less than the sum of all their Compensation Credits.

Pilots must commence benefits no later than the first of the month after turning 65 (or regulated age).

Forms of distribution include a Full Lump Sum (cash or rollover to an IRA), or any of the following annuity options: Straight Life, Joint and Survivor at 50%, 75%, or 100%, and Pop-Up Joint and Survivor at 50%, 75%, and 100%.

· For single pilots, the default payment option is a Straight Life Annuity.
· For married pilots, the default payment option is a 50% Joint and Survivor Annuity.

Yes. Pilots can take an in-service distribution from the MBCBP beginning at age 59 ½. An in-service distribution requires the withdrawal (or rollover) of all accrued benefits in the pilot’s MBCBP account. In order to take an in-service distribution, the total amount of the pilot’s Compensation Credits and Interest Credits must be equal or greater than the floor guarantee benefit at the time of distribution.

In-service distributions are only permitted once per plan year.

The pilot’s beneficiary is entitled to receive the pilot’s full MBCBP account balance.
· If the pilot’s beneficiary is a spouse, the benefit will be payable as an annuity for the life of the spouse, or the spouse may alternatively elect to receive a 100% lump sum payment in lieu of the annuity.
· For non-spouse beneficiary, the benefit the benefit will be paid as a lump sum.

The maximum payout under the SLB (28.F.4.c) will increase from $110,000 to 343 multiplied by the highest Section 3 pay rate in effect. For example, in 2026 the highest amount is $160,867 (343 x 469).

Yes. Under Section 28.4.a. the amount will increase from $520,000 to $580,000.

These pilots will be allowed to submit another advance notice of planned retirement provided, the new planned retirement date is in the month of the pilot’s 65th birthday or on December 31st. These pilots will retain their eligibility for the bonus.

There is an “Early-Retirement Section 28.F. Eligibility Program that permits retirements with SLB/AN+ eligibility on additional dates. Refer to the Section 28.F. Retirement Bonus Letter.

Yes. Pilots can take an in-service distribution from the Pilot Money Purchase Pension Plan Account beginning at age 59 ½, which brings it in line with the PRSP in-service distributions. This account was merged into the PRSP in 2017.

Yes. The percentage of the pilot’s account balance allowed to be in the brokerage account is changed to 98%. If the pilot’s balance in the brokerage account exceeds 98% due to investment gains or losses, the pilot will not be required to transfer amounts out of the brokerage account, but instead new contributions made to the PRSP will first be allocated to the pilot’s core line-up so that the total brokerage balance does not exceed 98%. When Fidelity has the capability to track a minimum dollar amount in the core line-up, a pilot will be required to maintain a minimum balance of $10,000 in the core line-up (to replace the brokerage cap of 98%).

Yes. Pilots will not be responsible for expenses associated with hardship withdrawals. Pilots will be responsible for expenses related to annual fund operating expenses, brokerage window expenses, in-service distribution fees, loan fees, third-party Qualified Domestic Relations Order expenses and other third-party expenses. The Company will still be responsible for any other expenses of the PRSP, including but not limited to recordkeeping administration and audit expenses.

Yes. The Company will send an FCIF every June 30 and September 30 informing pilots regarding the applicable Code Section 415(c) limit and their PRSP contributions to prevent the inadvertent forfeiture of the Company contributions. Additionally, information will include how to find the pilots contribution balances on their Pay Stub and the Fidelity website. ALPA will continue to send out their annual communication on the PRSP and IRS Limits.

A QLAC is an investment vehicle that allows funds from a qualified defined contribution plan to be converted into an annuity. If Fidelity offers QLACs, ALPA and the Company will meet and discuss offering this feature in the PRSP. Also, if QLACs are offered to other Company employees, QLACs will be offered to pilots in the PRSP.

Yes. If the Company conducts a request for proposals (RFP) for the selection of a recordkeeper for the PRSP, ALPA will have an opportunity to review and comment on the RFP during the development and to hear presentation by each vendor.

Yes. The beneficiary protection is extended from the month of retirement to the first day of any of the six months following the pilot’s retirement date. Below is an example of this extended beneficiary protection.

Example:
A pilot retires on 12/31/26 and defers commencing of their Legacy Pension Plan Benefit. In April 2027, the pilot submits a valid election to commence their Legacy Pension Plan benefit on June 1, 2027, with a payment option of 100% Joint & Survivor. The Pilot passes away on May 15, 2027. The Legacy Pension Plan benefit shall commence in the form elected by the pilot, 100% Joint & Survivor.

Yes. The Plan Document allows the Company to purchase an annuity for the Legacy Pension Plan benefits. With this agreement, the Company must consult with ALPA prior to the purchase of annuities for the pilot retiree participants.

Yes. If a pilot dies after submitting a valid advance written notice of planned retirement, the bonus will be paid.

Yes. Pilots providing advance written notice of planned retirement to occur during the month of their 65th birthday will be allowed to change the planned retirement date one (1) time as long as the following criteria are met:
· The pilot’s new planned retirement date must be within the month of the pilot’s 65th birthday;
· The change must be made at least 90 days prior to the original planned retirement date; and
· The pilot’s new planned retirement date is not earlier than the original notice date plus 12 months.

Note: This is different than the Re-Notice side letter agreement.