Quick question about post 65 PRP
 

Can we opt out of this? If not, why not?

I don’t need another mandatory deduction micromanaging my retirement healthcare.

it’s in the paystub as “&Post65 PRP” and it’s ALPAs post retiree premium reimbursement plan

Short answer is no.

Long answer, it is in the contract, somewhere.

Cool I get what it is. We should be allowed to
opt out of this terrible terrible “investment”


“Per our conversation, this deduction code is for the FedEx Pilots Post-Medicare Retiree Premium Reimbursement Plan (PRP) and will be deducted from every paycheck.



The Plan was established in the 2006 CBA to help retired pilots handle medical expenses once eligible for Medicare and no longer eligible for the Company’s Pre-65 Health Insurance. The Plan reimburses you and your spouse for eligible Medicare Supplement premiums up to a maximum amount. This reimbursement is for both your life and that of your spouse.



When the Plan was established, the Company initially funded it with over $40 million and began contributing $0.50/credit hour of pay into the plan. The $0.50 is deducted from pilot pay rates and is not taxable to pilots. In the 2015 CBA, due to inflation and the cost of medical care, the amount was increased to $1.00/credit hour of pay, plus an additional $0.05 on the first day of each November bid period thereafter. The current amount being deducted from pilots pay is $1.35/credit hour of pay.



I have attached the following:

• An article from the R&I Chairman that explains the Plan in detail.
• The 2015 CBA Section 27.I. Premium Reimbursement Plan.

Here is a link to the FDX MEC R&I website with information on the PRP ALPA FDX MEC PRP.



The PRP contributions are not taxable. It is a Voluntary Employees' Beneficiary Association (VEBA) plan which is a type of tax-exempt trust used by its members and eligible dependents to pay for eligible medical expenses. VEBAs are authorized by Internal Revenue Code section 501(c)(9).





Please let us know if you have any questions.”

Can’t opt out of the Ponzi scheme, sorry.

You want to opt out and get the corresponding employer contribution added to your pay rate? It doesn’t seem like that is an option. Maybe an idea to peruse for the next negotiation. Why do you not like the PRP?

Pretty much this. Much like social security, the current beneficiaries are getting your current deductions. And also like SS, don't expect to get anything from it if you're currently under 45. It's a tax.

Are you really that clueless? Do you even know how much money is in the fund and how those funds are managed?

Please educate me. Is there a lot of money in the fund?

Is our resolve that weak that we care about $1.50/ credit hour?

Instead of just throwing that negativity out there, you could say "If we care that much about $1.50/CH, then we will certainly not vote for pay rates $.01/CH less than Industry leading"