FEDEX Retirement
01-08-2011 | 07:19 PM
#11
Gets Weekends Off
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From: Gear Monkey
Oh, I see now. I'm supposed to take it as a joke when you say you want me to lose my retirement in exchange for you're getting a COLA. Sorry I didn't understand that your smiley face was showing you were only joking.
JJ
DLax,
I'll start by saying that I hope no one has to go through a situation that causes them to have to go out on long term disability, regardless of their age. That said, when I suffered my heart attack and subsequent open heart surgery, I decided that there were more important things in life than flying rubber dog poop
out of Hong Kong. My decision to stay on LTD, instead of returning to work, was in large part, influenced by the FAA and their antiquated rules, one of which was a requirement to undergo an angiogram, before they'd reinstate my medical. The problem I had was that folks die from the angiogram itself, in fact, over 1% of patients die from the procedure. So with that in mind, I decided to sit on the sidelines and root for the home team. As a side note, I talked with the FAA medical folks at length and explained I'd be more than happy to undergo newer tests that were non-invasive, and were more definitive than an angiogram, for what they wanted to see, but they refused.
Now for the advantages of remaining on long term disability instead of retiring: 1) your longevity continues; 2) your seniority continues; 3) your health insurance premiums remain as if you were still employed; 4) any benefits, except travel, that you have with the company are retained, however, you do not continue to accrue sick days, vacation time, etc, etc. Nor does the company continue to fund your 401K.
In my situation, when I went out I had almost 18 years with the company and I was 61 years old, so my retirement would have been calculated at 36% of the average of my high five. By remaining on LTD, I will retire 5 years from when I actually went on LTD, which will be at the end of July, 2012. This 5 years (on LTD) phenomenon, in my opinion, is an anomaly, that is a big advantage to the individual pilot that finds himself going out past his 60th birthday.
The biggest advantage of course is that having been allowed to remain "on the property", I will retire with not 18 years, but 23 years, which is an additional 10% retirement pay.
Hope this answers your question, if not PM me and we can discuss it over the phone.
JJ
JJ
DLax,
I'll start by saying that I hope no one has to go through a situation that causes them to have to go out on long term disability, regardless of their age. That said, when I suffered my heart attack and subsequent open heart surgery, I decided that there were more important things in life than flying rubber dog poop
out of Hong Kong. My decision to stay on LTD, instead of returning to work, was in large part, influenced by the FAA and their antiquated rules, one of which was a requirement to undergo an angiogram, before they'd reinstate my medical. The problem I had was that folks die from the angiogram itself, in fact, over 1% of patients die from the procedure. So with that in mind, I decided to sit on the sidelines and root for the home team. As a side note, I talked with the FAA medical folks at length and explained I'd be more than happy to undergo newer tests that were non-invasive, and were more definitive than an angiogram, for what they wanted to see, but they refused. Now for the advantages of remaining on long term disability instead of retiring: 1) your longevity continues; 2) your seniority continues; 3) your health insurance premiums remain as if you were still employed; 4) any benefits, except travel, that you have with the company are retained, however, you do not continue to accrue sick days, vacation time, etc, etc. Nor does the company continue to fund your 401K.
In my situation, when I went out I had almost 18 years with the company and I was 61 years old, so my retirement would have been calculated at 36% of the average of my high five. By remaining on LTD, I will retire 5 years from when I actually went on LTD, which will be at the end of July, 2012. This 5 years (on LTD) phenomenon, in my opinion, is an anomaly, that is a big advantage to the individual pilot that finds himself going out past his 60th birthday.
The biggest advantage of course is that having been allowed to remain "on the property", I will retire with not 18 years, but 23 years, which is an additional 10% retirement pay.
Hope this answers your question, if not PM me and we can discuss it over the phone.
JJ
Is 5 years the max on LTD?
Do you get 7% B Fund payments while disabled? If so, based on what amount?
Not sure if you've heard, but our MEC & ALPA recently sent out a letter to all the FDX pilots who have the FEDEX MEC LTD Supplemental Insurance Plan.
There is an "open enrollment" opportunity until (1 Dec 2010 to 31 Jan 2011) to upgrade your coverage without medical underwriting, allowing those who currently have coverage to Age 60...to change the coverage to Age 65.
Under the current rules/benefits that you outline above, this would clearly be of greater benefit to any pilot who did not have 25 years of service by Age 60 vs. someone who already has a full FEDEX retirement at that point.
Out of curiosity, did you have the MEC LTD supplement too?
...or just the vanilla FDX LTD benefits from the company?
Thanks again for sharing,
DLax
01-08-2011 | 08:02 PM
#12
Part Time Employee
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From: Dispersing Green House Gasses on a Global Basis
To quote another thread:
Last edited by MaxKts; 01-08-2011 at 08:40 PM.
01-09-2011 | 04:06 AM
#13
Gets Weekends Off
Joined: Sep 2006
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From: Retired
DLax,
As an example, say a 56 year old goes out. He will be allowed 5 years (it might have changed now, because of the age 65 rule, but I DON'T KNOW for sure) of LTD, whereas a guy 45 would get 15 years before he had to retire. The idea I believe is that if you're still on property past your 60th birthday, they give you 5 years of LTD from the date you went out. For those younger, you get LTD until your 60th birthday, then you must retire. We have a pilot whose still on LTD, and has been, since I got here in 1990. He obviously went out well prior to his 60th birthday.
As for the FEDEX MEC LTD Supplemental Insurance Plan, I personally don't have it, but thanks for the information about the open enrollment period. Hopefully those who have this insurance will take advantage of the age change if they decide to continue to work.
Yes, without question, the LTD is a tremendous benefit to those of us who cannot work and are under the legal retirement age of 60 AND who have not reached their 25 years of service. For those who have reached their 25 years, it's still a nice benefit, depending on how much they would make if they elected to retire and take their normal retirement. You must remember that the company pays you 60% (on LTD) for the first two years and then it drops to 50% for the remainder of your LTD, where the payment is based on the average of your highest 12 months, IN THE LAST 3 YEARS. So it's conceivable that someone could have had a higher high 5, which didn't include the last 3 years, and so they might be taking a large pay cut, to stay on LTD.
Suppose you have a guy who was a captain, for perhaps 10 years, until he couldn't hold a First Class medical, so he's been in the back seat for the past 3 years. In this case, he'd be getting much less on LTD than he would if he retired, especially if he had his 25 years. If he didn't, it might serve him to stay until he had to retire, so that he would increase his years of service, which would be seen in his retirement pay. I'd recommend speaking with the folks in Employee Benefits to get a true handle on this LTD stuff.
JJ
As an example, say a 56 year old goes out. He will be allowed 5 years (it might have changed now, because of the age 65 rule, but I DON'T KNOW for sure) of LTD, whereas a guy 45 would get 15 years before he had to retire. The idea I believe is that if you're still on property past your 60th birthday, they give you 5 years of LTD from the date you went out. For those younger, you get LTD until your 60th birthday, then you must retire. We have a pilot whose still on LTD, and has been, since I got here in 1990. He obviously went out well prior to his 60th birthday.
As for the FEDEX MEC LTD Supplemental Insurance Plan, I personally don't have it, but thanks for the information about the open enrollment period. Hopefully those who have this insurance will take advantage of the age change if they decide to continue to work.
Yes, without question, the LTD is a tremendous benefit to those of us who cannot work and are under the legal retirement age of 60 AND who have not reached their 25 years of service. For those who have reached their 25 years, it's still a nice benefit, depending on how much they would make if they elected to retire and take their normal retirement. You must remember that the company pays you 60% (on LTD) for the first two years and then it drops to 50% for the remainder of your LTD, where the payment is based on the average of your highest 12 months, IN THE LAST 3 YEARS. So it's conceivable that someone could have had a higher high 5, which didn't include the last 3 years, and so they might be taking a large pay cut, to stay on LTD.
Suppose you have a guy who was a captain, for perhaps 10 years, until he couldn't hold a First Class medical, so he's been in the back seat for the past 3 years. In this case, he'd be getting much less on LTD than he would if he retired, especially if he had his 25 years. If he didn't, it might serve him to stay until he had to retire, so that he would increase his years of service, which would be seen in his retirement pay. I'd recommend speaking with the folks in Employee Benefits to get a true handle on this LTD stuff.
JJ
01-09-2011 | 04:11 AM
#14
...Whatever It Is!
Joined: Jul 2006
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I'm just curious, why did you opt not to purchase this when it was made available to us? Do you have another supplemental LTD insurance?
01-09-2011 | 04:26 AM
#15
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From: Retired
I remember reading the literature about the ALPA LTD insurance and thought at the time, "it would never happen to me." Quite a stupid thought, in retrospect. However, that said, I also remember not liking the fact that one had to wait a full year before the payments would start, and that they were then limited to 48 months of payments, or less, depending on ones age when they went out. I remember thinking, instead of this "loss of license" insurance, I'd just go out and buy a private disability income policy, which I of course then didn't. Oh well.
JJ
JJ
01-09-2011 | 04:29 AM
#16
...Whatever It Is!
Joined: Jul 2006
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I remember reading the literature about the ALPA LTD insurance and thought at the time, "it would never happen to me." Quite a stupid thought, in retrospect. However, that said, I also remember not liking the fact that one had to wait a full year before the payments would start, and that they were then limited to 48 months of payments, or less, depending on ones age when they went out. I remember thinking, instead of this "loss of license" insurance, I'd just go out and buy a private disability income policy, which I of course then didn't. Oh well.
JJ
JJ
01-09-2011 | 05:14 AM
#18
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From: Retired
AA,
I do, but you really need to read my two previous posts to understand that I won't retire until the 5 years of LTD have expired, which will put me at the end of the third quarter of 2012, Sept 27th, to be exact. And that's a good lookin' football on your avatar.
JJ
I do, but you really need to read my two previous posts to understand that I won't retire until the 5 years of LTD have expired, which will put me at the end of the third quarter of 2012, Sept 27th, to be exact. And that's a good lookin' football on your avatar.
JJ
01-09-2011 | 05:20 AM
#19
Slainge Var'
Joined: Oct 2006
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From: Zeppelin Tail Gunner
JJ, is there some sort of downward adjustment since you would have to ride side saddle at 65 or does it stay based on your average monthly earnings? Sweet deal if it does while the over 65s are plumbing their way to Campinas. BTW, Ni-how from Guangzhou! "Would you like you mystery meat stir fried, boiled or live?"
01-09-2011 | 07:34 AM
#20
Gets Weekends Off
Joined: Sep 2006
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From: Retired
Basic Monthly Compensation for LTD "is calculated using the average of the 12 highest consecutive months in the last 36 months immediately preceding the disability commencement date. The disability commencement date is the first day you begin drawing from your sick bank in conjunction with your disability." Note: the above quote comes directly from the Pilot Benefit Book. Here's a link: https://pilot.fedex.com/contract/pbb...ltd_plan.shtml
The only guys who can remain on the property, on LTD, after their 65th birthday, are those who started their LTD AFTER they had turned 60. Those guys can stay for a total of 5 years from the date they started LTD. There is no downward adjustment that I'm aware of.
JJ
The only guys who can remain on the property, on LTD, after their 65th birthday, are those who started their LTD AFTER they had turned 60. Those guys can stay for a total of 5 years from the date they started LTD. There is no downward adjustment that I'm aware of.
JJ
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