United Retiree Alleges Airline Did Not Allow Her to Opt Into Better Plan Despite Promising to Do So

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A proposed class action alleges United Airlines has unlawfully prevented some retirees from obtaining the benefits of a more recent “early out” plan despite assuring those who already opted for early retirement that they could do so should the benefits of a new plan be more robust. 

The 11-page lawsuit alleges the plaintiff, who opted for early retirement in July 2020 through United’s Frontline Voluntary Separation Program 2 (VSP2), and other retirees have been deprived of the opportunity to switch to the carrier’s newer Frontline Voluntary Separation Leave Program (VSL), whose benefits the case describes as “richer” than those of the VSP2. 

The issue, according to the complaint, is that United stated in a company announcement that retirees would be eligible for the benefits of the VSL, which was announced on January 22, 2021, as long as they retired within the previous 36 months. 

In light of her alleged inability to obtain the retirement benefits of United’s more recent “early out” program, the plaintiff contends that she would have just opted to retire through the VSL program given that plan provides significantly better benefits. According to the lawsuit, the plaintiff contacted United’s human resources in an effort to switch from the VSP2 retirement program to the newer VSL program but she was unable to do so, even though the VSL was offered within three years of her retirement. 

A message from United with regard to the VSP2 relayed that in the event “something dramatic happens in the industry and we decide to offer an early out within 36 months after you retire, you would be eligible for the financial benefits of the program even after retiring,” the lawsuit says. The filing relays that the airline sent the message in light of the fact that many employees were supposedly holding off on retiring to wait and see if the company would offer another early out with different benefits. 

Per the suit, the plaintiff’s appeals of United’s decision were to no avail, and the retiree has “exhausted all administrative requirements and this matter is ripe for judicial review.” 

Whereas the VSP2 offered healthcare and enhanced travel benefits and an additional year of benefits tacked on to former employees’ retirement plans, United’s VSL additionally offered participants “up to $112,500 in additional pay” and a $125,000 contribution to a retiree health account, the lawsuit says. 

The case also chides United for characterizing the VSP2 and VSL options as “leaves of absence,” and not “early out programs.” 

“United’s characterization of these plans as ‘leaves of absence’ is form without substance,” the suit says. “A leave of absence allows an employee to return to work when it ends. Here, the VSP2 and the VSL offer cash benefits to an employee who agrees to terminate his/her employment.” 

The case looks to represent United employees who retired within 36 months of the VSL and were not paid the benefits offered by the program. 

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