CloudSailor

I don't understand this one. Who figures out the FedEx yearly cost on Oct, 2017 - us, or the company? If it's the company, will ALPA have access to how they figured it out?

Really just asking, as I have not seen this clearly addressed (or I missed it).

kronan

First time ever ALPA will get to look at the books. Up til now, our insurance premiums were some unknown number subject to a 6% increase...ooh scary.

But the 10% max increase of yr 1 2006 CBA was barely a blip....As people looked at the 9%, then 3% raises.

Now it's causing coronaries, hello one thing we should have figured out for sure is that the Affordable Care Act wasn't affordable

Raptor

Here's a nice surprise...especially for the guys currently on LTD. And it's good for the rest of us...going on LTD is often out of someone's control.

The LTD payment has been raised to 60% of 401(a)(17) limits for the first 24 months and 50% thereafter. It is now indexed to annual IRS changes to the limit and it applies to a pilot whether or not they are already on LTD as of the signing of the TA. And, it's high watermarked so that if the limit ever goes down a VEBA will be established to make up the difference back up to the high watermark. [The 401(a)(17) is the $265,000 number for 2015]

Let's say someone had $280,000 income in 2014 and went on LTD. Under the current CBA they would have been limited to $11,000 a month, and under the TA, it would be ($265,000 (limited from $280,000) x .6) / 12 = $13,250. Nice increase and the right thing to do.

7.

6. As of June 1, 2006, aA pilot’s monthly LTD Plan benefit during the first

24 months of disability may not exceed

$11,000 per month, subject to the

limitations

60% of the monthly compensation limit set forth in Code §

401(a)(17).

As of June 1, 2006, aA pilot's monthly LTD Plan benefit

following the first 24 months of disability may not exceed

$9,166.66 per

month, subject to the limitations

50% of the monthly compensation limit set

forth in Code § 401(a)(17). Increases to this limit shall be indexed based

on periodic adjustments to the limitations of Code § 401(a)(17)

.7. The

provisions of Section 27.J.6. above notwithstanding, on and after October

30, 2006, the monthly benefits of pilots in pay status, which are capped by

the limitations of Code § 401(a)(17), will be adjusted, up to the 60% or

50% level, as applicable, but not to exceed the amount permitted pursuant

to the limitations of Code § 401(a)(17) at the time of such adjustment

. The

benefit amount adjustments made under this Section 27.J.7. are not

intended to be one-time adjustments; rather, adjustments will continue to

be made in the future, for benefits paid thereafter, at the time of future

adjustments to the limitations of Code § 401(a)(17). This Section 27.J.7.

shall apply to all pilots, whether their benefits began before or after the

signing of this Agreement.

In the event the limit set forth in Code §

401(a)(17) is decreased legislatively, the Company shall establish a VEBA

to cover pilots in the LTD Plan only. Compensation used to calculate

benefits to be paid from the newly established VEBA shall be limited

annually to the greater of (1) the highest limit under Code § 401(a)(17) in

effect at any time prior to it being decreased or (2) the current limit in

effect under Code § 401(a)(17).

Raptor

Page 459 of the TA:

The total projected costs for 2017 and each calendar year thereafter will be determined by an actuary selected by the Company and will be developed from the experience of all pilots and eligible dependents participating in medical, dental and vision coverage, excluding fully

Example: As soon as practicable in 2018, the total projected per capita costs for all pilots and survivors paying active rates for 2017 will be compared to the actual costs for 2017, and if the actual costs are more or less than the total projected costs (outside a corridor of +/-3%), the difference times the 2017 contribution percentage shall be applied to

2019’s contributions for all pilots and survivors paying active rates participating in 2019; provided that the total monthly contributions for any coverage tier will not be more than 10% over the monthly contributions payable for such coverage tier for 2018.

CloudSailor

Thanks Raptor.

Busboy

Of course, that "initial bump" raises my health insurance premium 46% on the buy up plan. But, we all know the company is struggling to maintain the bottom line.

busdriver12

I personally don't care much about the percentage. It's one thing if the percentage is of a large number, but if the percentage is high, yet of a small number, who cares? ie, I've talked to people who were screaming about a 100% increase in health care premium costs, when their $20 monthly cost was increased to $40. Yeah, okay, so whatever.

I don't see that the cost of the buy up plan increases significantly. However, the unknown cost of the Cadillac tax, is concerning. So we get a worse plan, but they reimburse us in way such as increased pay (which for some, is taxed at 45% or greater?). Lovely. I don't see any purpose in participating in the consumer driven plans, unless there is alternate insurance. However, I do wonder if this is setting us up for that becoming the only option.