1st overnite

I asked this a while back and thought I understood it, but I'm not 100% sure. From what I understand, VEBA goes into a fund to help fund the health care spending account for the guys that retire, which was initially funded by the company. They get $25,000 at retirement to use for any medical cost.

My questions are;

1. From what I remember, there was something that the guys that were 50 at the signing of the last contract took possesion of the money, but can't use it until retirement. Does everyone get it at age 50 or just the guys who were at that age when the last contract was signed? If you don't get it age 50, when do you get it?

2. Is it only for post-retirement expenses?

3. If you die before you use it all, what happens to it?

4. Are VEBA deductions going to continue until you retire to help fund the health care spending account?

Thanks for the help.

Jetjok

1. No one actually "takes possession" of the funds. They were/are invested in the Putnam Money Market fund, and are earning whatever rate of return that fund is earning. I'm not sure if I could move that money into another fund paying a higher rate of return, but I doubt it. I believe it was set up for guys who were over a certain age, but I don't remember the age, and it was as of a certain date, I believe. As a frame of reference, the company put $25K into the fund and as of today, its value has grown to $26,924.05.

2. Yes, this fund is only for post-retirement expenses. Speaking of expenses, there are many expenditures that qualify as "medical expenses", such as driving to the hospital, milage, etc, almost anything that is even closely related to medical issues will probably be covered. I've even looked into using the money to pay premiums for long term care insurance (after I retire, of course) and was told by the benefits person at our ALPA office that the LTC premiums would qualify.

3. If you die, then the fund is available to your spouse, to be used for the same types of expenses. When he or she dies, the remaining money in the fund goes back to FedEx.

4. I don't know.

Hope the above helps, but for a more comprehensive explanation of the bulk of the plan, dust off the Contract and read Section 27, Insurance Benefits, as well as the Pilots Benefit Book.

JJ

Gunter

No need to thank us JJ, you're very welcome.

FDXLAG

Seems like you are confusing the two types of Veba funds specified in the last contract.

One is the 25K fund you are talking about, available to pilots 53 (at DOS) or older and with 10 years of service (I think) with the company. The intent was to help them make it from retirement at 60 (haha) to medicare and the supplement provided by the other fund.

The other fund is the .50 per hour we contribute to. Initially this fund was seeded with Fedex and fdx pilot money. This fund is for over 65 guys and family to supplement medicare. Everyone is eligible for this.

The only real relationship between the 2 funds is the 25K for geezers was initially laundered through the other fund (my guess is for IRS reasons).

Jetjok

Oh, you're right. On behalf of everyone who was old enough and/or lucky enough to get this fund, I thank you. Anything else that you feel we need to thank you for, just let me know and I'll see what I can do.

JJ

angry tanker

Doesn't all the wet lease payments (if there are any) go to VEBA now?

MaydayMark

When was the last time we got one of those? Now that we are "overmanned," will there be any more wet leases?

pipe

Of course there will. There will be however many wet leases it takes to keep BLG's below minimum so that 4.a.2.b can continue after peak. As far as I know our bulletproof, well-written contract doesn't connect the dots between 4.a.2.b and wet leases. Someone please tell me I'm wrong.

PIPE