LTD Update: Houston LC 171 Captain Rep Election - Captain Chuck Cummins
Up to $28,000 tax-free RETURNED to every L-CAL pilot...
The most defining issue in the election for LC 171 Captain Representative is resolution of the L-CAL LTD Trust Fund. The only way we will ever fight to get OUR LTD money is by electing me, Captain Chuck Cummins, as your Captain Representative. The alternative is that YOUR money--money that you earned and on which you paid taxes--WILL be shared as the basis for the new plan. You WILL NOT SEE A DIME UNLESS YOU WERE ON LTD AT THE TIME OF THE MERGER. In other words, you are donating your assets for the benefit of the majority without a vote. This cannot happen, and I am prepared to fight. Here are the facts that have been vetted through two very respected attorneys who are well-versed in these issues:
1. Pre-Merger Continental Pilots were paying into an LTD plan that had CASH VALUE. It was similar to a whole life insurance policy where the pilots paid taxes on all contributions they and the company made on the pilots’ behalf.
2. Pre-Merger United Pilots were not paying into a plan with a cash value. In fact, they were not paying into an LTD plan as their LTD was company funded, like a term insurance policy.
3. At the date of merger the Continental Pilots LTD plan was valued at about $100 Million. The United Pilots LTD plan had a value of $0.
4. The opinion of highly respected legal counsel is that at merger The Continental Pilots Long Term Disability plan was TERMINATED. Therefore, the proceeds of the plan should have been used to purchase an annuity for the 155 Continental Pilots who were on LTD as of that date. The remaining balance should have been paid out to the Continental Pilot plan participants who were already taxed on their contributions.
5. Met-Life is one of the only companies capable of doing a structured settlement of this size. The plan participants would give Met-Life the $100 Million. Met-Life would purchase an annuity for $29 Million (the actuarial amount needed to cover the remaining 155 Continental Pilots on the LCAL LTD for the life of their careers including the possibility of increasing mandatory retirement age.) Then, Met-Life would pay out the balance to The Continental Pilot Plan Participants relieving the company of any liability going forward.
6. Rest assured, this is not the Continental Pilots against the Union. It is the Continental Pilots against the management. Interestingly, there is NO way ALPA will ever get dues money on the return of insurance over-payments made by pilots. ALPA, it seems, wants the money to go to the new LTD plan. However, this money had dues and taxes paid at the time it was deducted from L-CAL pilots’ payroll and it rightfully needs to go back to the L-CAL pilots.
7. Today, management makes all the decisions about this LTD plan. They thank us for paying the taxes on this pool of money as it grows. And, they plan to keep it until they decide do something with your $100 Million!
Well, that decision was just made at the last MEC meeting. As my competitor, Brad Hutchens, stated in his campaign letter, he led a movement to increase the monthly LTD cap from $8,000 to $11,000. While that is a necessary move, management should be held accountable to fund this increase. Instead, YOUR $100 Million CAL LTD money will lay the foundation benefitting not just you, but all United pilots! And, my competitor, Brad Hutchens, is doing this right in front of you! Interestingly, he didn't mention the approximately $28,000 tax-free money that would be taken from every L-CAL pilot plan participant to fund this increase.
I’ve tried to paraphrase all that was explained to me. There may be more or less; however, it is too big of an issue to merely let fade away. As your Captain Representative, I vow to fight to the end of my term to return your money to you. This is pre-merger money that belongs to the rightful benefactors. I ask all United Pilots to stand with us to refund this LTD trust fund. Then I ask all of us to stand together to raise the monthly benefits and improve our LTD program for all United Pilots.
Remember, if you have already voted, you can change your vote at any time up until 10:00am, August 10. Thank you for your attention. Please vote for Captain Chuck Cummins for LC 171 Captain Representative.
Breaking news: With the possible closure of CLE L-CAL pilots will now lose even more representation at the MEC. My election to the MEC is more important than ever if you want to ensure your voice is heard.
Fraternally,
Chuck Cummins
The election is now open for all members in good standing in LC 171 including First Officers. Simply log into the Members Only section ofwww.alpa.org with your seven-digit ALPA number and password. On the left hand side of your member home page, select the link under My Alerts to access the ballot and vote in the LC 171 election that remains open until August 10, 2016. If you’ve forgotten your password, call (888) FLY-ALPAand press “3.”
Remember: You can change your vote at any time. Don't miss this last chance to have an L-CAL pilot in there fighting for what is yours.