There's a lengthy thread here: http://www.flyertalk.com/forum/unite...e-account.html

Basically, due to a favorable "glitch" in the system, your priority for check-in, security, and boarding, as well as Economy Plus seats, baggage allowance, and possibly CPU transfer to whoever is named on the award ticket. (There are mixed reports of lounge access as *G flying internationally.) The offers show up because the system is unaware of its own glitch.