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

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.

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

LTD Plus the FEDEX MEC
 

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

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