FDX - Optional Life game plan
 

Help me translate the FDX MEC Life Plan email and what the best game plan is.

If you have the current CBA Option Life (Pilot) $300k + $50k spouse and want to keep the same coverage, you can enroll in the FDX MEC Life plan and receive the same coverage but pay less monthly and avoid taxes on imputed income.

In order to not have both coverages, you need to dis-enroll from the CBA Optional Life plan nlt Nov 8th (at fedex.ehr.com) and then enroll in the FDX MEC plan after that (Nov 10th thru Jan 10th).

Is that how you read it?

I can't figure this out either. Leave it to ALPA to put out an email NOT clarifying something. Put it in english so the rank and file can understand it.

Almost. But, you don't need to dis-enroll from the CBA Optional Life plan by Nov. 8th. From the .ehr.com enrollment info(on its home page, under "2011 changes" click on "Make Changes to My Life Insurance/AD&D Elections" and you'll find this:

"Optional Life Insurance - You can newly elect, increase or decrease coverage anytime throughout the year. Evidence of Insurability (EOI) is required to newly elect coverage or increase the coverage amount."

So, you should wait to dis-enroll in that, the CBA Optional Life plan, until you've enrolled in the FDX MEC plan, effective Nov 10th. That way you'll be covered in case you die on Nov 09th.

And, just so our cavemen can understand it...This only pertains to the OPTIONAL Life Plans.

Ok thanks. Didn't know you could dis-enroll from the optional life anytime.

Can you stay enrolled in both or are we required to only get into the new FDX MEC plan?

Were you hired onto the regular or supplemental seniority list?

Regular list....Both are OK

Supplemental...Just the old plan

I believe "imputed income" only applies when FDX is paying your insurance premium ---- not if you are buying additional life insurance on top of the $800K FEDEX provides to everyone automatically.

And yes, while you do pay income taxes on the imputed income --- effectively making this insurance monthly cost = Imputed Monthly Income x (1 - total FED + State Marginal Tax Rate) --- I think you will find the policies FEDEX actually pays for are actually cheaper than any policy the MEC or ALPA can offer.

Private company (e.g. USAA) level term policies are typically the cheapest; however, the lowest rates will be for non-smokers, who are willing to take a physical exams which look at their weight, BMI, cholesterol etc.

It's always nice to have at least a portion of you life insurance not dependent on your specific employment or your specific membership in a specific union.

That way, if your job situation changes somehow, you're still insured.

YMMV.

I believe what the MEC's letter was trying to say was, that FDX is in fact going to have to cover some of your Optional Life premiums. As the amount that we pilots have to pay is capped, per the CBA. So, you will have to pay taxes on the premium amount that FDX covers, above that cap, even for optional insurance.

But, regardless of that, if the numbers that the MEC sent in the email are accurate...The MEC insurance is cheaper than the FDX optional life, without taking the imputed income taxes into account.

Just to clarify what I think you said.

The "FDX MEC" Life insurance plans are fully portable.
Meaning if you quit, get fired, lose your license or retire, you can take these plans with you to you next adventure.

So you will still be insured.


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I think he meant USAA etc plans.