Profit Sharing - Section 4.N.4.
Date: January 13, 2017
Type: AFA Article
As provided in Section 4.N.4. of our Joint Collective Bargaining Agreement (JCBA), in the event United has more than $10 million in pre-tax earnings, the Flight Attendant Annual Profit Sharing Pool shall be based on two components:
- 10% of Pre-Tax Earnings that are not in excess of the Pre-Tax Earnings for the previous calendar year; and
- 20% of Pre-Tax Earnings that are in excess of the Pre-Tax Earnings for the previous calendar year.
Be mindful, pre tax earnings are defined as United consolidated net income excluding (I) federal, state and local income taxes (II) unusual, special or non-recurring charges or (III) charges with respect to grant, exercise or vesting of equality, securities or options granted to United and United employees and (IV) expenses associated with profit sharing contributions.
If our profit sharing program is triggered, each eligible Flight Attendant’s share of the pot will be a pro rata share of the Annual Profit Sharing Pool based on the ratio of the Flight Attendant’s Considered Earnings for the year to the aggregate amount of Considered Earnings for all eligible employees that year.
This year Profit Sharing payments will be made to all eligible employees on February 27, 2017 in a separate pay check. You will be able to make your Profit Sharing elections beginning January 27, 2017 through February 12,2017, during which time you can decide to defer all, or a percentage of your Contractual profit sharing payment to your:
- 401(k) retirement savings account or,
- Roth 401(k) Plan account, if applicable.
- UK Stakeholder Plan Account
You will be able to access your individual statement on United’s Flying Together website under My Info starting January 27, 2017
Please keep in mind that if NO election is made, you will receive your profit sharing as a cash payment subject to all applicable state, federal and local income tax withholdings.