|
Originally Posted by cskafan123
(Post 3341346)
So is it 50% of the actual earnings or min guaranteed? When one is on disability and is offered a position outside of flying, does that person keep his last pay rate and if so is that until retirement?
“A pilot shall be eligible for LTD Plan benefits upon exhaustion of his regular and disability sick accounts, as described in Section 14, or upon his experiencing a seat change or upon moving to a non-pilot position because of disability, as described in the LTD Plan . Except as provided in Section 27.J.7., disability benefits paid to pilots who are disabled prior to October 30, 2006, shall be governed by the terms of the disability plans in effect on the date of commencement of the dis- ability . Pilots who become disabled on or after October 30, 2006, shall be governed by the provisions below . LTD Plan benefits payable to a pilot whose disability commences on or after October 30, 2006, shall equal 60% of monthly earnings, as de- scribed in Section 27.J.6., for the first 24 months that a pilot is eligible to receive benefits under the LTD Plan, subject to the limits in Section 27.J.7. Thereafter, benefits payable to a pilot who becomes disabled and continues to have an occupational disability shall equal 50% of monthly earnings, as described in Section 27 .J .6 ., and subject to the limits in Section 27.J.7. Such benefits shall be paid through the earlier of the date on which such pilot (1) ceases to be disabled, or (2) the date on which the pilot attains age 65 . In order for a pilot to continue to be eligible for a disability benefit under the LTD Plan, the pilot must fully cooperate with the Claims Paying Administrator, in coordination with the Aeromedical Advisor, and must diligently seek restoration of any required license or medical certificate to allow the pilot to return to work. The Company shall pay the full cost of such coverage . Monthly earnings shall continue to be defined as a pilot’s basic monthly compensation, i .e ., the 12 highest consecutive months out of the 36 consecutive months preceding the disability period .” |
Originally Posted by cskafan123
(Post 3341061)
Oh wow! The A-Plan contribution is huge. So the supplemental buy plan is an additional 16%?
I guess I have heard wrong. I was told that you can buy up to 40% so one keeps full pay. The supplemental is not taxed so its really like 23-25% depending on what you’re earnings had been prior to disability. The supplemental is also not earnings capped by 401.a.17 IRS limits like the primary disability is. |
Originally Posted by sailingfun
(Post 3341194)
Two key points you did not mention in discussing disability programs are who funds the program. Is it pilot funded or company funded or a combination. The second consideration is how is the earnings calculation is made. Is it 50% of actual earnings, 50% of 75 or 80 hours ect..
Retirement was mentioned and is another important consideration. Delta for example pays 32% of disability payments into the DC plan effectively giving a pilot the exact same contribution as if he was working. Thanks for asking. FDX LTD plan is funded by the company not the pilot. Its only limited by the 401.a.17 numbers set forth by the IRS. Our optional supplemental is not taxed and not limited by the IRS cap. It also includes pension accrual for years of service while out on LTD. |
Originally Posted by Noworkallplay
(Post 3341787)
Thanks for asking. FDX LTD plan is funded by the company not the pilot. Its only limited by the 401.a.17 numbers set forth by the IRS. Our optional supplemental is not taxed and not limited by the IRS cap. It also includes pension accrual for years of service while out on LTD.
|
I’m not sure if anyone specifically addressed the earnings cap. It used to be 260K, don’t know if it has gone up. So 60% of 260K is 156K as the max you would be paid out on LTD for the first two years.
|
Originally Posted by sailingfun
(Post 3341800)
Is the actual payout limited to the 401 cap or is the FAE calculation limited by that number. If the later it would be a pretty severe restriction. If the former it should not effect most pilots.
|
Originally Posted by busdriver12
(Post 3341808)
I’m not sure if anyone specifically addressed the earnings cap. It used to be 260K, don’t know if it has gone up. So 60% of 260K is 156K as the max you would be paid out on LTD for the first two years.
Section 27.J “A pilot’s monthly LTD Plan benefit during the first 24 months of disability may not exceed 60% of the monthly compensation limit set forth in Code § 401(a)(17)” after that its 50% |
Originally Posted by Noworkallplay
(Post 3341778)
Short answer is actual earnings. Because its based on actual earnings prior to going on LTD a future hypothetical pay increase doesn’t matter.
“A pilot shall be eligible for LTD Plan benefits upon exhaustion of his regular and disability sick accounts, as described in Section 14, or upon his experiencing a seat change or upon moving to a non-pilot position because of disability, as described in the LTD Plan . Except as provided in Section 27.J.7., disability benefits paid to pilots who are disabled prior to October 30, 2006, shall be governed by the terms of the disability plans in effect on the date of commencement of the dis- ability . Pilots who become disabled on or after October 30, 2006, shall be governed by the provisions below . LTD Plan benefits payable to a pilot whose disability commences on or after October 30, 2006, shall equal 60% of monthly earnings, as de- scribed in Section 27.J.6., for the first 24 months that a pilot is eligible to receive benefits under the LTD Plan, subject to the limits in Section 27.J.7. Thereafter, benefits payable to a pilot who becomes disabled and continues to have an occupational disability shall equal 50% of monthly earnings, as described in Section 27 .J .6 ., and subject to the limits in Section 27.J.7. Such benefits shall be paid through the earlier of the date on which such pilot (1) ceases to be disabled, or (2) the date on which the pilot attains age 65 . In order for a pilot to continue to be eligible for a disability benefit under the LTD Plan, the pilot must fully cooperate with the Claims Paying Administrator, in coordination with the Aeromedical Advisor, and must diligently seek restoration of any required license or medical certificate to allow the pilot to return to work. The Company shall pay the full cost of such coverage . Monthly earnings shall continue to be defined as a pilot’s basic monthly compensation, i .e ., the 12 highest consecutive months out of the 36 consecutive months preceding the disability period .” One more thing. Who is your supplemental Loss of license provider? Does it go through the union and is there a medical exam required to enroll? Thanks you guys and gals and Merry Christmas! |
Originally Posted by cskafan123
(Post 3341878)
This is exactly what I was looking for. Thank you !!! Looks like your LTD combined with supplemental insurance and an A plan make you have the best LTD plan in the industry. So if one loses his/her medical they are financially set for life!
One more thing. Who is your supplemental Loss of license provider? Does it go through the union and is there a medical exam required to enroll? Thanks you guys and gals and Merry Christmas! |
Originally Posted by IQuitEagle
(Post 3341057)
I think is pretty typical LTD for most major airlines: I “think” it’s 60% of salary initially, then 50% after two years. You can buy supplemental to bump it up to 66%. The huge benefit is that while out on LTD, you still get full service credit toward your pension payment (A-plan). So if you go out on LTD after 5 years, and are out for 20 years until you hit 65, you still get the full 25 year service credit for your pension payment calculation.
For a good example use the average pilot who most likely would use this benefit. Use the information I posted above. Age - 50-55 (WB Captain) YOS - 10-15 (has his high 5) Average last 12 months - 400k |
| All times are GMT -8. The time now is 04:14 PM. |
Website Copyright © 2026 MH Sub I, LLC dba Internet Brands