Great question for our reps. Look at the negotiator's newsletter #32, paragraph 6. Eliminated pilot contribution, and increased the max.... but no mention of own occupation. I'm afraid we didn't get it this round.

 

Can someone explain what "own occupation" means ? not to familiar.

 

The way our current LTD is worded, after two years of being on LTD they can re-evaluate your case and if they deem you are capable of doing a job other than being a pilot with your disability, they can/will reduce your benefits.

With full, "own occupation" LTD, if you are unable to carry on your own occupation (pilot) because of the disability then you will receive the full benefits without regard to your capability of performing another job with your disability.

 

Just another deal breaker. ...

WTF

 

PBS better not be in that TA... they can give ca $400/hr and fo $200/hr... they can give us 20% dc and the most platinum insurance at zero cost to the pilot... once something happens and we’re in bankruptcy protection, we lose all those shiny goodies and we’re still stuck with pbs...

And one of the most alarming things the company proposed was a 5 year duration... that’s another 8-9 year contract... if I’m saying yes to 5 years, the entire contract has to be iron clad and guaranteed... and there has to be a clause that we’ll have a new contract the day the 5 years is up... so basically, 5 years is a hell to the no from me

 

Thanks Aero1900. I have had good and bad experiences with PBS. Hope something positive comes out of the April meetings. I have an interview next month and would like to go knowing a bit more of what could happen.

 

According to the Unum policy, which has recently changed to another carrier whose terms have yet to be released, there was a two year limit on mental health and substance abuse. The other loophole was, if it was determined that you could make at least eighty percent of your benefit at another job you were qualified for, they could terminate your benefit. I don't know how much proof they had to come up with, if any, that you could actually find a job paying that amount. I also don't know how often they used that language to kick people off LTD. But I do know insurance companies don't make money by paying out when they can avoid doing so.

I'm not sure why the previous poster said we would have to pay tax on the 8K max when we don't on the 5K current max. I'm not aware of any change in that direction. We pay tax on the imputed income from the LTD premiums, therefore we don't have to pay tax should we collect benefits. At least that was my understanding. That would seriously impact the extra 3K per month max if we had to pay tax on it.

Own occupation to age 65 is the only way to be ensured of getting the benefit. Right now the Company can change the policy carrier and terms of the policy without our input. I personally don't trust them with that much latitude. I assume they will shop for the cheapest carrier that will offer the minimum benefit required by the Contract. If all we have is 8K max a month, that leaves them too much room to add loopholes to allow termination of benefits, thereby lowering costs. And we all know lowering costs is a passion around here...

 

If your employer pays the LTD premium (even if you have imputed income on said premium), the benefits are taxed as ordinary income and treated as such. If the employee pays premium with after tax dollars the benefits are not taxed.

 

We TA'd LTD, and the company is paying 100%.

 

Right now the company pays 90% of the premium and taxes you on that 90% (making the benefit tax free). 10% is the alpa assessment on your pay stub. I believe the ta language takes the benefit from 5 to 8 grand, company pays 100% and the structure remains (tax free). There wasn’t enough info in the blast mail to know for sure and in my opinion there’s no point in asking till I see a complete ta.