From our union newsletter today. What timing.

The FDX MEC LTD Plan was designed by FedEx pilots for FedEx pilots. The pilot-designed FDX MEC LTD Plan provides monthly benefits for disabilities that prevent you from working in your own occupation as a pilot. This coverage is optional and paid for by the pilot, and benefits are paid in addition to the LTD benefits provided by FedEx under our CBA.
The FDX MEC LTD Plan was designed to supplement the negotiated LTD benefit in our CBA. The Federal Express Corporation Long-Term Disability Plan for Pilots (the CBA LTD Plan) benefit begins upon submission of a valid claim within 60 days of exhaustion of your regular and disability sick banks. If approved, you will receive a monthly benefit of 60% of your eligible pre-disability income for 24 months. After 24 months, you will receive a monthly benefit of 50% of your eligible pre-disability income until age 65 or recovery, whichever occurs first. For the 2021-2022 plan year (same as FDX fiscal year) the maximum earnings considered are limited to $290,000. This limit is indexed to the IRC 401(a)(17) limit and will increase to $305,000 for the 2022-2023 plan year. For the current plan year, the maximum monthly benefit at the 60% level is $14,500 and at the 50% level is $12,083.33. The CBA LTD benefit is a taxable benefit.
The FDX MEC LTD Plan provides a benefit of 17% of your pre-disability income until age 65 or recovery, whichever occurs first. While the benefit adjusts with your eligible earnings, it is not reduced or limited by the IRC 401(a)(17) limit like our negotiated LTD benefit. However, the plan is limited by a maximum benefit of $14,500 per month. In addition, the FDX MEC LTD Plan’s 17% benefit is not subject to federal income tax, since you are paying the premiums with after-tax dollars.
Some other benefits of the FDX MEC LTD Plan are the annual 3% COLA for maximum of 5 years and a survivor death lump sum benefit of 3 times your final monthly benefit.
With the FDX MEC LTD Plan, you can elect a Benefit Qualifying Period of 12 months or 24 months. The Benefit Qualifying period begins the first day you become disabled. Your benefits will begin the later of the 12 or 24 Benefit Qualifying Period or exhaustion of your regular and disability sick banks.

 

I may have missed this in the thread...are there any income offsets on the plan? Meaning, if you have to go out on LTD and you get another job somewhere else, do they offset any of your LTD income, or do you make your new income on top of your LTD payout?

 

You can make up to (don’t quote me but my recollection of reading) 60k before the LTD benefit is reduced.

 

Hi,

Does anyone have any insight on what happens when SSDI actually IS approved? Good/bad/ugly? I’m actually going thru this as of yesterday so any suggestions on others to contact are much appreciated!

How do the other benefits change? Are you forced to use Medicare instead of company insurance? Also, how do you calculate the repayment amounts? I’m sure there are many questions I’m missing, not sure who I should contact next.

Thanks,
Waldo

 

Context the FedEx ALPA Aeromedical committee. Contact info is in the pocket calendar or the FDX.ALPA.org website. Or you can call the FDX ALPA office.

 

Waldo1, I knew a guy whose nickname was Waldo................. And not at FDX. If you are one and the same, PM me, pretty familiar with the process, not in a happy way either. Or, my phone number hasn't ever changed. You used to have it, along with Bear and Scotty et al. having my number.

 

Incorrect, if the current Pilot Benefits Book (2018) on the PFC website is correct. That appears to be the latest version of the PBB available.

"Offsets for Earned Income from Other Employer or Self-Employment - an LTD reduction arising out of other employment or self-employment during the term of your disability will be applied to your benefit only after the disability payment plus the outside income you earn exceed your pre-disability income. For purposes of this provision, your pre-disability income is measured as the average earnings (Company + outside earned income) over the 12 months immediately preceding your disability."

Interesting that the income your LTD benefit is calculated from is based on is the highest 12 consecutive months in the past 36. So if you killed it for 2 years and then coasted for a year and went out on disability your pre-disability total income could be determined off a lower income than your actual LTD benefit amount was calculated from.

For demo purposes, assume constant 10K earnings per month for the 36 months prior to going on to LTD. During those last 12 months you earned 5K on your side gig. Total pre-disability income for you is 15K per month.

Your LTD benefit for the first 2 years would be .6 of 10K, or 6K per month. You could now earn 9K per month on the side and not have any offset to your LTD payment of 6K as your post-disability income would be 15K per month.

If you worked more on the side and earned say 14K per month, you would now have a post-disability income total of 20K per month, exceeding your pre-disability income. The company would reduce your LTD benefit by 50% of the difference between the two incomes (20K - 15K). So half of 5K would be 2.5K, and now your LTD benefit would only be 3.5K to combine with your other income (14K) so you could now make 17.5K total each month. This would obviously adjust each year based on your other income.

After the first 2 years on LTD your benefit would drop to .5 of the 10K per month, or 5K per month. So now your could earn 10K per month on the side without causing any offset in your LTD benefit.

A bit of a disincentive to work more on the side than you need to match your pre-disability income.

Anyway, that is how I understand it, please check for yourself and let me know if I've goofed it up.

 

Yes, I am pretty sure that is all correct.

 

PM sent Waldo

 

“A bit of a disincentive to work more on the side than you need to match your pre-disability income.

Anyway, that is how I understand it, please check for yourself and let me know if I've goofed it up.[/QUOTE]

Does anyone know if guard/reserve pay would count as “side hustle money” when they calculate your total income prior to LTD?