Open Letter re retiree health costs
 

Open letter to FedEx ALPA and its pilots

By now we all have our 2020 health enrollment information. Once again, the retiree premiums are increasing at a rate far and above any other plans I have data for, be it the multiple plans under the Federal Employee Health Benefit program (FEHB) or anyone else I’ve talked to about this. With the 2020 increase, the High Deductible Plan (retiree and spouse) has gone up 126% from 2017 to 2020. Post 2016 Contract implementation (2018 to 2020) it has increased 74%. Other national plans have been increasing at single digit per year rates. When I discussed this with FedEx ALPA Retirement and Insurance last year, after a one year 42% increase, I was told that “I shouldn’t have retired early” and that “military retirees with TriCare did not really benefit that much with the new Contract”. Both of these statements are dead wrong. I retired after a 30-year career, with full pension and, I thought, well-earned benefits that I could carry until Medicare age. And, yes, those with TriCare did quite well (as many of you know) thanks to the $4800+ per person ($9600+ for pilot and spouse) HRAs that the new Contract established, pretty much guaranteeing that they would never be out of pocket one cent for health care. My family, like so many others, planned for some increases in health care costs, but didn’t foresee $18,000 a year out of pocket (premiums, co-pays and medications) in only my third year of retirement. And thanks to our inept negotiating team, no $25,000 HRA card helps to offset costs, which was provided to the previous Contract retirees.

So, I write this letter to rip the curtain back on what is really important for FedEx ALPA and its pilots to consider for their future retirements. Your first step will be to empanel a negotiating committee who will work for all pilots (and competence would be suggested this time around too). Your primary goal in the next negotiations is to regain control of benefit costs, not to just pump up your W-2. But under the current Contract, if you’re in the military, I suggest you work to get your socialized medicine (I wish I had it). If you’re not TriCare-eligible, and really don’t want to work to 65, find a way to go out on a disability. Burn up all of that sick leave to extend your time on an active employee medical plan.

What are current non-military retirees doing in light of the uncontrolled (and unaudited?) health care premium increases? Most are resigned to choking on the premiums for 2020. Then, if the Affordable Care Act is still around in 2021, it will be likely cheaper to buy a ACA policy, opt out of FDX plans, get the $9600+ per year HRAs.

It shouldn’t have ended up like this.

Tell that to our Union sympathizers here on property. They said the TA had significant gains. I guess they didn’t subtract the gains from the losses to realize we were still in the negatives. I still can’t understand why anybody voted for that POS.

Hate to say it, but it was the senior pilots voting yes, going for the money grab before retirement, that got our current POS contract over the finish line. Glad you all are feeling the pain.

Reap what you sow.

Kind of harsh to put it that way.. This situation is definitely a reminder that you don’t walk out the door into the sunset without still being tied to the group. What goes around always comes around.

Even pre-06 CBA there were lamentations about the cost of retiree health care.
Some of the Captains I flew with as an engineer continued to fly post 60 as engineers because of the cost of retiree health care.

In 2006 there were pension multipliers and other tweaks to help those of a certain age (really negated by the regulated age change and the opportunity to stay in the window seat for longer)

Every month I contribute to mitigate the costs of medicare for retired pilots (something I will one day benefit from)

ALPA does pre-retirement seminars to help plan for retirement.

Cost of my healthcare was 27k last year, not really expecting it to be cheaper once I retire and hit the age group that tends to use more healthcare.

Guess my expectations for my retirement healthcare was to evaluate plan offered via FedEx with those on the Exchange and choose accordingly, balancing costs with coverage along with my comfort level.

Union sympathizers have spoken!

Translation, don't be mad at my friends ... I mean the C2015 negotiators. This has been a problem since 2006 and you should have attended one of the Union's retirement seminars and have planned accordingly. :rolleyes:

Isn't it interesting that the guy who penned this letter to our group was the one who stated ”furlough so I dont have to take a pay cut” during 4.a.2.b. Well ain't karma one to bit you in the ars. He got what he deserved.

Sorry to burst your bubble, but I don’t live in Memphis and the C2015 negotiators aren’t my friends, merely fellow Union members.

But, didn’t you mean C2016? Like the Poster?

Wouldn’t it be nice if the poster threw some actual numbers?

I mean, letter said following the Implementation of CBA2016 his insurance went up 126% (2017-20)
74% (2018-20) while other national premiums went up single digits (which national insurance would that be by the way)

So, does that mean his premium was $200 and increased 126% to $452? (2017-20)

That it was $260 and increased 74% to $452 (2018-20)


And, why even worry about attending a pre-retirement briefing. Why I’d totally suggest ignoring all the various recommendations from other pilots and our Union to try attending one 3-5 years before your planned retirement date.
Shoot, why even bother to plan for retirement. It’ll work out.

And as I approach retirement, absolutely number one priority for us should be getting retired pilots on our Active Pilots insurance plans. No retired pilot should ever have to pay more than an active pilot.

For goodness sake, FedEx can afford it. So, I say less pay now for better benefits later....who’s with me
😉

$1104 ytd for a 2nd year FO...

not chump change by any means

This program is shameful

Doesn't that means you have logged 1104 hours of pay this year?

And you voted YES without reading it????
 

27.I.3
"Effective with respect to credit hours paid on or after November 2, 2015, the Company will contribute to the VEBA $1.00, plus an addi- tional $0.05 on the first day of each November bid period thereafter, for each paid credit hour for each pilot having a Master Seniority List num- ber (which would otherwise be paid to the pilot in cash) as the pilot’s ongoing monthly contribution to the PRP/VEBA."

You read and understood this document when you decided to vote YES???? :rolleyes::eek:

It is currently $1.15 /CH. $1,104/1.15$/CH = 960 hrs sounds like min guarantee for a year.

You realize we haven’t received our oct 31 pay stubs. What is that 200 hours short of guarantee since it isn’t even peak yet? Can you look at a calendar :rolleyes::rolleyes:::eek: very happy with this version of the VEBA from contract 2006 improved in 2015.

Feeling a little snarky this morning? Enjoy a second cup of coffee!

I don't mind THIS VEBA either! But I knew what was written before deciding how to vote! ;):D

Dude reread my post it was a simple question. I knew the VEBA went up. If anyone was a snarky it was certainly you.

$1104/1104 hours of pay = $1.00

YOUR math shows you did NOT know VEBA went up!!!! Please explain otherwise?

BTW, I didn't throw any insults at you! Stay classy! ;)

and in 10 days it’ll be up to $1.20 /ch

the 960 does include some OT

I guess I should have put approximately in there for the haters. Did you question flying boxes on his incorrect assertion that 960 is guarantee through 15 October? Come back when you have something substantive.

Are you guys at purple impacted by this or is it just corporate employees? Article says big changes in medical coverage in 2020 including surcharges for spouse and no benefits for domestic partnerships.

“Surcharge for spouses added
If an employee’s spouse declines medical insurance offered through his or her own job in favor of FedEx’s health plan, the employee will pay a $150 surcharge every month, according to a document summarizing the benefits changes.

According to a 2019 survey from professional services network PricewaterhouseCoopers, the median surcharge for spouses with coverage access through another employer is $100 a month.”

https://www.google.com/amp/s/amp.commercialappeal.com/amp/4052248002

No, does not apply to us, although they did send us an email about it accidentally.

Nice to have ALPA protection on things like this!

So, you’re asking us to give the retirees more? When you got buy outs and other goodies? And you’re no longer here? I’d rather pay for hotels for basic Indoc new hires and keep the flow coming here. I’m not trying to sound cold- I know a lot of you worked hard- but I’d like to spend the capital on the folks on the property.

That might sound good to you now, but before you know it, you’ll be off the property. And you’ll be thinking that after 25-30 years, the contracts should have better addressed your retirement years.

Very few people retire before age 65 - that's just the facts. Of the ones that do, by looking at the names I'd say at least half have Tricare so we are talking about maybe 20 people a year that would benefit from the changes - going forward. I just don't see spending negotiation capital on such a small amount of people - it's up to you to plan on retirement appropriately - if you have no other insurance and are counting on Fedex then you probably need to save up some money. I'd be all for it if more retired early but we have strong evidence that they just don't. Heck after the 2006 CBA gave that huge $25,000 to the older folks on property regardless of years on property (only time I've ever seen age matter in a contract more than seniority) very few decided to actually use that $25K for health care and retire. They went to the back seat and then when the age changed they moved back up to the front.

I see a very small vocal minority screaming for improvement here but I'd much rather spend the capital on something that will affect us all equally.

Since 2006, I've been asking the union when I was going to get my $25K, PLUS INTEREST.

So far, silence.

I think anyone on the property in 2006 should get the $25K, plus interest from 2006 when they retire.

You know, just to be fair and all.

Then we can talk about the multipliers they also got.

Funny how the negotiators always seem to feather their own nest and those of their friends.

Or do some of both?

Seriously. I think we can do some of both. The concept that we should neglect everyone who is going to retire to spend on those who aren’t even on the property yet, makes zero sense. We will all be retired at some point, and we want to encourage people to retire early, not make it unattractive. Not everyone is eligible for the 40K retirement bonus from the last contract. Of course we all need to save our money for retirement, but the concept that we shouldn’t even waste time making sure that retirees don’t get totally screwed over healthcare is shortsighted.

Problem is the union has allowed in a way age discrimination against the younger pilots. These age limited benefits need to stop and apply to everyone on the seniority list. This has created bad blood within the
membership i.e. only one group getting the 25k etc. I personally do not believe these "encourage people to retire" items actually do that, just look at all that stayed after pocketing the 25k payment.

I agree with not putting in age limited benefits in the contract, for example you don’t get the retirement notification bonus if you were less than 54 at age of signing (which makes no sense to me). While I don’t know that ensuring that retiree health care costs aren’t exorbitant may not encourage people to retire early, allowing the company to massively raise costs at their whim certainly discourages people from doing so. And making sure that retiree benefits don’t suck is not an age limited benefit, it’s a benefit that is available to everyone if they choose to utilize it.

I, for one, would like to retire by 60, but if medical costs are ridiculously expensive, I will have to rethink my strategy and possibly delay retirement.

I think it’s going to get to the point where we won’t really need to negotiate for things solely for new hires. As it is, FedEx is already disadvantaged by not providing regular pay and a hotel during initial. There will come a point where management will add that themselves, along with wanting to increase first year pay. When that happens, we should say, “sure, go ahead and add all that, but what will you compensate current (and or retired) pilots with to make it happen?”

It'll never happen. 57% will wring their hands like my old grand mama and mewl "It's all they'll give us..."

That’s when we say, “fine, then leave first year pay rate, training pay, and no hotel room during training as is.”

They cannot increase that unless they negotiate it. When they want it, it’s leverage. At some point, they will want it. So just wait.

Dang sort of like voting no on the last contract!

We've had a whole lot more leverage than that and didn't do anything with it.

I realize it seems to be conventional wisdom that requiring management to treat newbies like $h|t somehow gives the pilot group extra leverage. But I still can’t help but wonder if treating the newbies like that doesn’t undermine pilot solidarity from day one. Telling the newbie that the pilot group doesn’t value him/her as much as the regional they just left values them sends a ‘screw solidarity, every man for himself’ message in their first year on the job.

Newbie pay was improved in the last contract.

They also get lots of free meals.

It took me until year 8 to get a right seat in a wide body.

The newbies are getting them right out of training.

If they don't like us, there are plenty of other places that are hiring, unlike in years past.

So, I don't feel sorry for them, and if they company can't get people to work here at some time in the future, perhaps they need to pony up.

I’m a recent newbie. I’m not for treating them bad. What I’m saying is that with time, it’ll self correct. Management will be the ones wanting to compensate newbies more. At that time, we say sure, what will you give us in return?

What was the leverage? This idea that there was freight left on the deck in summer of 2015 is just total BS. It was being left maybe in May/Jun but by July/Aug, when we actually were in the final stages, it was all moving. Anyone ever protect min days off? Don't think I ever saw that..ah the leverage. What a myth. Wish we were stronger.

Absolutely false and inaccurate. My phone was ringing constantly, as were others that I spoke to. Anecdotal, I know, but still. And peak hadn't even hit yet. If what you said above helps you sleep better with your YES vote, so be it, but don't try to re-write history even though you "won".

Oh Johnny we had no choice. The union was out of money or whatever excuse the “ yes” group uses. A lot of them were the group who was less than 8 years from retirement. They got some small kickers and slobbered over a few thousand bucks when they lost much more. In the end, they created their own retirement health care cost because their own quick money greed.