Originally Posted by
Hedley
To add to this, that $11,000 per month is tax free. It comes from an insurance product and not wages, so there is no B-fund contribution. Also, since there are no wages from the company to deduct your portion of your insurance premiums, you cut a check to the company to cover your share. A friend is out on LTD right now. He’s getting $11k per month tax free and then cuts the company a check for around $400 to cover insurance for his entire family.
To expand on what Delta has for this and a prior post. If you had a serious illness you would go on sick leave until you exhaust your yearly bank. (270 hours max) At that point you go on short term disability which is 50% of your FAE which is your best 12 consecutive months in the last 36 months. This includes all earnings including profit sharing. After 90 days you transition to long term disability which pays the same. This benefit is 100% company funded. 98% of the Delta pilots also opt for a union program (DPMA) that is very low cost which provides a additional benefit for 1 year per occurrence and 2 years max that effectively brings you up to full pay for that time period. In addition you receive 32% of your disability pay into the DC plan. If you reach the IRS cap the remainder is paid as cash. In my case the program paid me 26,000 a month plus an additional 8300 a month to the DC plan after a major surgery. In addition the union plan paid 13,000 a month tax free. The company 50% FAE is taxed.
Full disclosure, I had a high FAE due to the large profit sharing in 2019, overtime and several extremely lucrative reroutes by Delta. One turned 6 days of flying into 7 days but pay went from 36 hours to almost 100 hours.