Air Line Pilots Association International Pilot Welfare Benefit Plan

“Veba board chairman wes clapper, officer elizabeth robinson, and key employee catherine powers (through departure 03/01/2024) are employed by air line pilots association, international ("alpa").”

“The president of alpa appoints the board of the organization, subject to approval by the executive council of alpa.”

“The plan document requires the veba board, its governing body, to consult with the alpa retirement and insurance committee, which is made up of 5 active pilots and has the responsibility of providing direction in terms of retirement and insurance issues to the membership. Additionally, the president of alpa signs off on plan design at the veba board's recommendation.”

“The alpa finance department and retirement & insurance department review and provide any feedback to the independent certified public accountant firm engaged by the plan to prepare the form 990. The comments are incorporated into the final version of form 990 which is filed with the internal revenue service.”

“Air line pilots association, international pilot welfare benefit plan follows the conflict of interest policy of its related organization, alpa, seen below: (1) alpa's conflict of interest policy is reviewed with employees, a written copy is included in each employee new hire kit, included in the employee handbook and the policy is posted on the employee staff center website. The policy provides examples of some of the relationships that should be avoided. The policy requires that all employees avoid conflicts between their personal interest and the members of, or persons represented by, alpa or the interest of alpa in dealing with employers or with suppliers, customers, and all other organizations or individuals seeking to do business with alpa. If a conflict is reported, discovered, or suspected, it is addressed first by the employee's supervisor and, if necessary, by the human resources department, and in either case, appropriate measures are taken, which can include termination for violation of the policy. (2) in accordance with federal labor laws, alpa is governed by officers elected from among the membership. Accordingly, decisions made by alpa's governing bodies necessarily affect the officers who make up those governing bodies, just as those decisions affect the union members as a whole. However, section 501(a) of the labor-management reporting and disclosure act (lmrda), 29 u.s.c. S501(a), states that officers and other union representatives "occupy positions of trust" with respect to the union and "it is, therefore, the duty of each such person, taking into account the special problems and functions of the labor organization, to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and bylaws and any resolutions of the governing bodies adopted thereunder, to refrain from dealing with such organization as an adverse party or on behalf of an adverse party in any matter connected with his duties and from holding or acquiring any pecuniary or personal interest which conflicts with the interest of such organization, and to account to the organization for any profit received by him in whatever capacity in connection with transactions conducted by him or under his direction on behalf of the organization." the responsibilities imposed by lmrda section 501(a) may be enforced by union members through suits in federal courts, or by the secretary of labor, and those responsibilities govern the union's actions.”

“The organization complies with the public disclosure requirements to the extent required by law. The organization makes its governing documents and financial statements available to participants, but not to the general public.”

“To provide long-term disability, group term life, 10 year level term life, 20 year level term life, dental, accidental death and dismemberment, critical illness, and group accident insurance benefits to collectively bargained members of the air line pilots association, international ("alpa") and their dependents.”

“The financial statements have been prepared on the modified cash basis of accounting; a basis of accounting other than accounting principles generally accepted in the united states of america ("u.s. Gaap"). Contributions are recognized when cash is received rather than when earned and investment and administrative expenses are recognized when paid rather than when the obligation is incurred. Group term life, 10-year term life, 20-year term life and dental insurance contracts are experience-rated contracts and experience-rating adjustments resulting in a refund/dividend are recorded when received, and therefore, amounts due to the plan at the end of the year are not recorded as a receivable from the insurance company. Interest income is recorded on the accrual basis, dividends are recorded on the ex-dividend date, changes in fair value of investments are recognized in the period they occur, and benefits are recognized when paid, which is consistent with u.s. Gaap. The financial statements are not intended to present the plan's net assets available for benefits and the changes in its net assets available for benefits in conformity with u.s. Gaap.”