It will hopefully keep it on life support while a more creative solution is manufactured.

 

Is anyone here paying an outside company for supplemental disability insurance? If so, can you break down the cost/benefit? I’m half considering cancelling PMA at this rate too as I’m younger and don’t want to waste years more of paying it at a 100+% increase only to not even have access to it by the time I might need it.

 

There wasn't much of a desire to "help other pilots" when this was the only group/union that wouldn't accept a minor temporary reduction in the line construction window to help pilots keep their jobs during a global pandemic. We can't be surprised by any of this/expect anything different.

 

I agree. Even though that want discussed in open session, it has to be the greater plan going forward.

I think if ALPA merger happens, they might cut this for ALPA supplementary disability, and might be part of their thinking. I guess time will tell but for me, I’ll unenroll before rate increase and reevaluate prior to the 5 year limit for joining.

 

ALPA offers LOL Insurance up to $6000 month, with a 12 month wait. Premiums get progressively higher from $200 at 30 to $2000/yr at 55.

 

APA does too. $10k/mo benefit with 12 month wait. This PMA is a different short term insurance.

 

Our POD is superior to the ALPA plan and ALPA has nothing like PMA. You are on your own the first year of a disability. Ostensibly you just max out your credit cards or burn your emergency savings then replace it with the lump sum payout in 12 months. If you recover before then you get nothing.

Regarding PMA (just like POD) you are not required to take the maximum. If you don't like the rate increases and are building reasonable emergency savings on third year+ pay then feel free to select a lesser benefit amount.

On the flip side the layered options allow for 100%+ income replacement if fully utilized. Personally I appreciate that safety net and don't mind paying for it. Others are free to make different choices depending on their desires.

ALPA doesn't offer anywhere near 100% replacement for incomes much greater than $300k.

 

Yep. If I went out today I’d take home $350k/yr plus a maxed out 401k. Quite a bit more than I make after taxes now since I throttled back after a deliberate big year in order to solidify 5 years of LTD. It’s nice to have no concern about income replacement aside from a short term emergency fund. AA/APA is absolutely industry leading in this regard.

 

I confess I do not know much about the APA offerings but I'd imagine as a younger person, paying the tax on LTD benefits to get tax-free LTD has a better long term return.

IMO if you're making nearly as much not working than you are doing so, that kinda gives credence to the large premium increases.

 

It's(generally) the same group of pilots as offenders in both scenarios. I have said plenty about APA and the decisions they made during, and after, covid.