Over +2,230 pilots have reportedly enrolled in Delta’s Voluntary Early Out Program (VEOP)[1]. Delta’s VEOP at a quick glance seems to be very similar to the offerings at American, JetBlue and Southwest. The VEOP monthly pay is 58 hours compared to 50 at AA, 67 TFP at SWA, and 50 hours at JetBlue. Even with three different compensation numbers and with Southwest using their TFP, the actual monthly pay is very similar. The AA and JetBlue offers both have retirement contributions whereas the Delta and SWA programs do not.
One of the major differences in these programs is the eligibility and length. Southwest’s package runs for 5 years or until age 65 but allows those younger than 60 to participate. Delta’s VEOP is similar but only runs for a maximum of 3 years while also allowing pilots meeting certain age and service requirements to participate. The American and JetBlue programs are far more restrictive on eligibility, requiring pilots at AA to be 62 years old, while at JetBlue they must be 63 by July 31st in order to be eligible.
Another difference found within the Delta VEOP is that health insurance premiums are completely paid by the company but only for a maximum of 24 months. The other three airlines generally have active medical for the same length as the compensation plan.
The enrolled Delta pilots will soon receive their separation dates and then have a 15-day revocation window, allowing them to withdraw from the VEOP program and remain employed as an active pilot.
This brief overview is not all encompassing, as there are several nuances within each program not mentioned here due to brevity. As pilots consider these programs, the key will be developing a comprehensive financial plan to see if the VEOP allows a pilot to achieve their retirement goals. For more than 35 years, La Ferla Group has been dedicated to helping pilots and their families achieve the financial security and independence they deserve. To receive information about us, please call us at 877-257-9040, email us at pps@laferlagroup.com, or visit our website at www.laferlagroup.com.
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[1] https://www.ajc.com/news/business/more-than-2000-delta-pilots-sign-up-for-early-retirement/GQI3IBYTVJBKJNCGTE7QD63EUU/
