• Based on highest consecutive 60 months out of 120 month period prior to retirement
• Multiplier 1.48% with a 35 year cap on participation
• Early retirement changed to age 55, however Flight Attendants who are age 50 with 10 years of service on May 1, 2003 will retain the ability to early retire between ages 50-55 and receive medical benefits
• Flight Attendants who are not age 50 on May 1, 2003 will have their pension benefit “frozen” (protected) and they may choose to terminate employment when they reach age 50 and receive their pension, however they are not eligible for medical benefits

• Those Flight Attendants who retire on or after July 1, 2003 will be responsible for a portion of the Company premium for retiree medical benefits

• Same medical coverage as active employees
• Must retire from active status or illness leave of absence to be eligible for pre-Medicare retiree medical coverage
• Employee must be at least age 55 with at least 10 years of service
• Flight Attendant who is at least age 50 with 10 years of service as of May 1, 2003

Retiree contribution based on length of service at retirement as follows:

Years of Service   % Of Cost
Fewer than 20       =80%
20 through 24       =60%
25 and over         =40%

2003 Rates              80%      60%      40%      
1 Adult                 $201.90  $151.43  $100.95
2 Adults                $423.99  $317.99  $212.00
1 Adult and Child(ren)  $383.61  $287.71  $191.80
2 Adults and Child(ren) $605.70  $454.28  $302.85

The cost to the retiree will increase annually as the cost of the coverage increases.

• One or more supplemental plans to Medicare will be offered with the retiree paying the full cost of the coverage minus a Company contribution of $90 per month
• The cost to the retiree will increase annually as United Airlines cost of the coverage increases

• Employees must be at least age 55 with at least 10 years of service and retire from active status or illness leave of absence. An employee who is at least age 50 with 10 years of service as of May 1, 2003 and who retires from active status or illness leave of absence will be eligible for retiree life. The benefit is $10,000