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fdx10 10-28-2012 07:00 PM

FDX Disability
 
What does our Harvey wyatt Insurance pay if you have the 2 year waiting period. Does it add 16% to the companies 50%, or does it take you to 75% of what you were making pre-disability? Thx

G8RB8T 10-28-2012 08:57 PM

This is from an email I got from FDX ALPA when I was asking questions about buying the Insurance, I hope it helps.

The maximum monthly benefit amount is $14,500.00, offset by the FedEx Corporate LTD Plan benefits and other income.
The minimum benefit is 15% of your lost monthly income.

The following is an example of how the FDX MEC Long Term Disability benefit is offset by the FedEx Corporate Disability benefit.

FedEx Pilot's Annual Salary $300,000.00
FDX MEC LTD Benefit: $300,000.00 times 66.7% divided by 12 months equals $16,675.00 GMB [gross max benefit]
FDX MEC Maximum GMB Benefit: $14,500.00
FDX MEC Minimum Benefit: $300,000.00 times 15% divided by 12 months equals a $3,750.00 monthly benefit.



FedEx Corporate Disability Offset:

60%: $250,000.00 times 60% divided by 12 months equals a $12,500.00 monthly benefit.
50%: $250,000.00 times 50% divided by 12 equals a $10,416.67 monthly benefit




FDX MEC LTD benefit while pilot is receiving the FedEx Corporate LTD 60% benefit amount:

GMB: $14,500.00
Offset: ($12,500.00)_(FedEx 60% monthly benefit)
$ 2,000.00 Net Monthly Benefit

The FDX MEC LTD $3,750.00 Minimum Monthly Benefit would be greater than the above $2,000.00 Net Monthly Benefit; thus, the $3,750.00 Minimum Monthly Benefit would be paid.





FDX MEC LTD benefit while pilot is receiving the FDX Corporate Supplement 50% benefit amount:

GMB: $14,500.00
Offset: ($10,416.67) (FedEx 50% monthly benefit)
$ 4,083.33 Net Monthly Benefit

The FDX MEC LTD $3,750.00 Minimum Monthly Benefit would be less than the above $4,083.33 Net Monthly Benefit; thus, the $4,083.33 Net Monthly Benefit would be paid.

Dahlysia 10-28-2012 11:35 PM

Thanks for the info. Under the situation you described, what would be the total monthly paycheck?

slaveship 10-29-2012 02:17 AM

LTD Plus the FEDEX MEC
 
Do you know if this is taxed? I have heard as an insurance benefit the amount is not taxed.

Jetjok 10-29-2012 04:23 AM

Income from a disability policy that the individual does not pay for is taxable, while income from a DI policy that the individual does pay for is not taxable. In other words, the LTD received by a FedEx pilot is indeed taxed.

JJ


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