FedEx LTD – When must I retire?
10-05-2013, 01:58 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Sep 2006
Position: Retired
Posts: 3,717
FedEx LTD – When must I retire?
I received a call from a captain friend of mine who asked if I’d speak to another captain, who is out on long term disability, but is being “forced” to retire. Since my situation was slightly different, I wasn’t sure of what help I could be, but in the hopes of providing some helpful information to that guy, I said “sure.”
I called the LTD captain and we spent perhaps an hour on the phone. Mostly I listened, as I was told this interesting story. I’ll start at the beginning (of our conversation) of what I can remember, and go until the end. This issue probably doesn’t affect you, but if you know someone who is on long term disability and approaching age 60, you might pass this story along.
This captain had been out for just over 10 years, and at the beginning of September, turned 60 years old. For those of you lucky enough to not know much about long term disability, your disability check comes only once a month, and it’s not a normal FedEx check, but one that comes via Aetna Insurance, which is the company that administers the LTD program.
As well, as is FedEx's right, you will be asked to apply for Social Security disability, which, if approved, will provide you monies that will be deducted from your “FedEx LTD check.” So if your LTD check was (let’s say) $6000 a month, and your Social Security disability was approved, providing you (let’s say) $1000 a month, the check you would receive from Aetna would be $6300. The contract of 2006 allows the company to reduce your LTD check by 70% of your Social Security disability check.
Anyway, the above was just for your information and is not really that much of an issue in this case. What is the issue is that this captain was called by Mercer, a division of Aetna, and told that they should not expect any more checks, because according to their records, “you have retired.” Needless to say it took the captain by surprise, because they had been told, in no uncertain terms, that they could stay on LTD until the month of their 65th birthday. Of course the captain relayed that information, only to be told that they needed to be talking to FedEx Retirement Center, because, after all, they were not FedEx. At this point the captain was totally confused, because: 1) they thought that the were talking to FedEx; and 2) after being out for over 10 years, had no phone numbers or names of anyone in Retirement Planning, or anywhere else at FedEx for that matter. It seems that in 10 years of being out, the captain had not received even one phone call from FedEx. In my 5 years of LTD, I too received not even one phone call from anyone in FedEx management.
To make matters worse, when finally contacted, FedEx Retirement Planning explained that it would take roughly 3 months before the first retirement check should be expected, and as for the interim 3 months, those monies would be paid out over the actuarial life expectancy of the captain. In other words, a few bucks each month until the full 3 months, roughly $20,000 is paid.
The issue here is that no one was looking out for this guy, and to make matters worse, because they were told they could stay to 65, they never did any planning, assuming they had another 5 years to go. What appears to be happening is that guys on LTD, over time, seem to fall through the cracks. So if you know someone in a similar situation, you might give them a heads-up. You must be your own advocate regarding LTD and retirement, because the company isn't always on top of it for you.
JJ
I called the LTD captain and we spent perhaps an hour on the phone. Mostly I listened, as I was told this interesting story. I’ll start at the beginning (of our conversation) of what I can remember, and go until the end. This issue probably doesn’t affect you, but if you know someone who is on long term disability and approaching age 60, you might pass this story along.
This captain had been out for just over 10 years, and at the beginning of September, turned 60 years old. For those of you lucky enough to not know much about long term disability, your disability check comes only once a month, and it’s not a normal FedEx check, but one that comes via Aetna Insurance, which is the company that administers the LTD program.
As well, as is FedEx's right, you will be asked to apply for Social Security disability, which, if approved, will provide you monies that will be deducted from your “FedEx LTD check.” So if your LTD check was (let’s say) $6000 a month, and your Social Security disability was approved, providing you (let’s say) $1000 a month, the check you would receive from Aetna would be $6300. The contract of 2006 allows the company to reduce your LTD check by 70% of your Social Security disability check.
Anyway, the above was just for your information and is not really that much of an issue in this case. What is the issue is that this captain was called by Mercer, a division of Aetna, and told that they should not expect any more checks, because according to their records, “you have retired.” Needless to say it took the captain by surprise, because they had been told, in no uncertain terms, that they could stay on LTD until the month of their 65th birthday. Of course the captain relayed that information, only to be told that they needed to be talking to FedEx Retirement Center, because, after all, they were not FedEx. At this point the captain was totally confused, because: 1) they thought that the were talking to FedEx; and 2) after being out for over 10 years, had no phone numbers or names of anyone in Retirement Planning, or anywhere else at FedEx for that matter. It seems that in 10 years of being out, the captain had not received even one phone call from FedEx. In my 5 years of LTD, I too received not even one phone call from anyone in FedEx management.
To make matters worse, when finally contacted, FedEx Retirement Planning explained that it would take roughly 3 months before the first retirement check should be expected, and as for the interim 3 months, those monies would be paid out over the actuarial life expectancy of the captain. In other words, a few bucks each month until the full 3 months, roughly $20,000 is paid.
The issue here is that no one was looking out for this guy, and to make matters worse, because they were told they could stay to 65, they never did any planning, assuming they had another 5 years to go. What appears to be happening is that guys on LTD, over time, seem to fall through the cracks. So if you know someone in a similar situation, you might give them a heads-up. You must be your own advocate regarding LTD and retirement, because the company isn't always on top of it for you.
JJ
10-05-2013, 02:35 PM
#4
Gets Weekends Off
Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
Me three ... I've yet to receive a call from anyone in management (but I have received email saying that they were going to call me)? Although it doesn't seem to matter, the Harvey Watt docs tell me they think it's likely I'll be back at work before I turn 60.
I recommend that this guy calls the FDX ALPA benefit ladies. I'm pretty sure they told me it might be in my benefit to stay on LTD past age 60 because the LTD benefits could be better than my retirement benefits (and I could continue to accrue longevity?) ...
At the very least, the ALPA ladies do this MUCH more often than any of us
I recommend that this guy calls the FDX ALPA benefit ladies. I'm pretty sure they told me it might be in my benefit to stay on LTD past age 60 because the LTD benefits could be better than my retirement benefits (and I could continue to accrue longevity?) ...
At the very least, the ALPA ladies do this MUCH more often than any of us
10-05-2013, 03:41 PM
#6
Gets Weekends Off
Thread Starter
Joined APC: Sep 2006
Position: Retired
Posts: 3,717
Mark,
You can stay on LTD past age 60, all the way up to age 65 because you went out under a version of the PBB (Pilot Benefit Book), and our current contract and or more specifically the FedEx disability plan that was in effect at the time you went out, which states "age 65." And yes, while out on LTD you do continue to accrue longevity for retirement and seniority, but not sick leave.
As for the captain involved, our 2006 contract states (in section 27.1.10.J.2) with a few exceptions, "disability benefits paid to pilots who are disabled prior to October 30th, 2006 (which is the situation in question), shall be governed by the terms of the disability plans in effect on the commencement date of the disability. Pilots who become disabled on or after October 30th, 2006 shall be governed by the provisions" of our current contract and PBB.
And one final thought....The captain told me that the only correspondence received from ALPA, over the past 10 years, was the annual calendar.. Regardless, I will pass along the ALPA phone number, with the hope that something can be done.
JJ
You can stay on LTD past age 60, all the way up to age 65 because you went out under a version of the PBB (Pilot Benefit Book), and our current contract and or more specifically the FedEx disability plan that was in effect at the time you went out, which states "age 65." And yes, while out on LTD you do continue to accrue longevity for retirement and seniority, but not sick leave.
As for the captain involved, our 2006 contract states (in section 27.1.10.J.2) with a few exceptions, "disability benefits paid to pilots who are disabled prior to October 30th, 2006 (which is the situation in question), shall be governed by the terms of the disability plans in effect on the commencement date of the disability. Pilots who become disabled on or after October 30th, 2006 shall be governed by the provisions" of our current contract and PBB.
And one final thought....The captain told me that the only correspondence received from ALPA, over the past 10 years, was the annual calendar.. Regardless, I will pass along the ALPA phone number, with the hope that something can be done.
JJ
10-05-2013, 05:00 PM
#7
Gets Weekends Off
Joined APC: Sep 2006
Posts: 1,336
Originally Posted by Jetjok
Mark,
You can stay on LTD past age 60, all the way up to age 65 because you went out under a version of the PBB (Pilot Benefit Book), and our current contract and or more specifically the FedEx disability plan that was in effect at the time you went out, which states "age 65." And yes, while out on LTD you do continue to accrue longevity for retirement and seniority, but not sick leave.
As for the captain involved, our 2006 contract states (in section 27.1.10.J.2) with a few exceptions, "disability benefits paid to pilots who are disabled prior to October 30th, 2006 (which is the situation in question), shall be governed by the terms of the disability plans in effect on the commencement date of the disability. Pilots who become disabled on or after October 30th, 2006 shall be governed by the provisions" of our current contract and PBB.
And one final thought....The captain told me that the only correspondence received from ALPA, over the past 10 years, was the annual calendar.. Regardless, I will pass along the ALPA phone number, with the hope that something can be done.
JJ
You can stay on LTD past age 60, all the way up to age 65 because you went out under a version of the PBB (Pilot Benefit Book), and our current contract and or more specifically the FedEx disability plan that was in effect at the time you went out, which states "age 65." And yes, while out on LTD you do continue to accrue longevity for retirement and seniority, but not sick leave.
As for the captain involved, our 2006 contract states (in section 27.1.10.J.2) with a few exceptions, "disability benefits paid to pilots who are disabled prior to October 30th, 2006 (which is the situation in question), shall be governed by the terms of the disability plans in effect on the commencement date of the disability. Pilots who become disabled on or after October 30th, 2006 shall be governed by the provisions" of our current contract and PBB.
And one final thought....The captain told me that the only correspondence received from ALPA, over the past 10 years, was the annual calendar.. Regardless, I will pass along the ALPA phone number, with the hope that something can be done.
JJ
10-05-2013, 05:24 PM
#8
Gets Weekends Off
Thread Starter
Joined APC: Sep 2006
Position: Retired
Posts: 3,717
LJ,
I believe that is correct. Yes, a current ALPA member in good standing when the LTD took effect. I believe that there are 2 ways in which you can eliminate your dues obligations while you are out on LTD, providing you're current, prior to your LTD. The first is to resign from ALPA. The second way is to suspend your membership. You will still be an ALPA member, and you'll not have to pay dues, but you can't vote as a paying member can, nor (I believe) can you increase or add ALPA sponsored insurances. Once you return to work, you can reactivate your membership.
JJ
I believe that is correct. Yes, a current ALPA member in good standing when the LTD took effect. I believe that there are 2 ways in which you can eliminate your dues obligations while you are out on LTD, providing you're current, prior to your LTD. The first is to resign from ALPA. The second way is to suspend your membership. You will still be an ALPA member, and you'll not have to pay dues, but you can't vote as a paying member can, nor (I believe) can you increase or add ALPA sponsored insurances. Once you return to work, you can reactivate your membership.
JJ
10-05-2013, 05:57 PM
#9
Gets Weekends Off
Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
Originally Posted by Jetjok
Once you return to work, you can reactivate your membership.
JJ
JJ
The way I read the ALPA stuff that arrived in the mail, it sounded to me like once you return to work and reactivate your membership ... that you also have to pay all the overdue back dues?
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