Frontier Negotiations Discussion
04-05-2018, 10:26 AM
#1331
On Reserve
Joined APC: May 2016
Posts: 12
Originally Posted by fcoolaiddrinker
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.
04-05-2018, 01:23 PM
#1332
Line holder
Joined APC: Nov 2013
Position: On the bus,seat 0A
Posts: 3,228
Originally Posted by TruthAddict1
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...
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...
Can't guarantee it is the same for you.
SWA now has own occupation till 65. Also, usually the insurance company only administers the plan, the money comes from the employer.
If you pay the premium with after tax dollars like we do at NK the benefits will be tax free. The company paid part is taxed, so it is much better to pay a little tax on the $34/month premium and receive $5K/month tax free when you need it.
04-06-2018, 06:04 AM
#1333
Gets Weekends Off
Joined APC: Jan 2010
Position: Airbus (the wide ones)
Posts: 106
Originally Posted by TruthAddict1
It sounds like the benefit would remain tax free then. I’d say that’s a pretty important detail to know, since taxes would wipe out much of the gain if it were indeed to be changed to taxable income.
04-08-2018, 06:37 PM
#1334
On Reserve
Joined APC: Mar 2011
Posts: 10
Originally Posted by doz4dllrs
Ask your rep. The answer I got was that the benefit will be taxed. If correct, the negotiating committee update was misleading when it said the benefit was raised from $5000 to $8000.
The rules surrounding taxation of individual disability income insurance benefits are generally simple. Because you pay the premiums with after-tax dollars, the benefits you receive are tax free. However, unlike health insurance premiums, you can't deduct premiums paid for individual disability income insurance as a medical expense.
04-09-2018, 08:21 AM
#1335
Gets Weekends Off
Joined APC: Jun 2014
Position: A320 CA
Posts: 491
Originally Posted by doz4dllrs
Ask your rep. The answer I got was that the benefit will be taxed. If correct, the negotiating committee update was misleading when it said the benefit was raised from $5000 to $8000.
As it is now, if you’ve got any other degree or training, the insurance company will do its best to terminate your disability payments after 2 years. Even if you’ve got an accounting degree that *theoretically* can pay 6 figures, try finding an accounting job after not working in the industry for the most recent couple of decades that pays more than $50k/yr—just as one example.
Lack of Own Occupation disability coverage is a dealbreaker for me.
04-09-2018, 08:54 AM
#1336
Gets Weekends Off
Joined APC: Apr 2016
Posts: 550
Originally Posted by OpenClimb
Lack of Own Occupation disability coverage is a dealbreaker for me.
I'd really hate to vote no on a decent contract, simply because our LTD is below what every other airline provides.
04-09-2018, 09:32 AM
#1337
Gets Weekends Off
Joined APC: Dec 2012
Posts: 2,078
Spoke with a f9 pilot thats been on our current LTD for several years now. After two years the insurance company determines weather or not you could earn 80% of your current salary (most likely determined by min guarantee for seat you can hold but not positive?). If not they require you to apply for social security disability and if you qualify for that (not sure how this is determined?) they deduct the amount received from your 5 grand. Either way this person has received 5 grand tax free every month for the last 4-5 years and anticipates doing so till 65. This is the current structure.
04-09-2018, 09:50 AM
#1339
Last To Know First To Go
Joined APC: Sep 2016
Posts: 604
Originally Posted by OpenClimb
While I agree that the taxable/non-taxable question is important, my biggest concern is that the policy needs to be “own occupation.”
As it is now, if you’ve got any other degree or training, the insurance company will do its best to terminate your disability payments after 2 years. Even if you’ve got an accounting degree that *theoretically* can pay 6 figures, try finding an accounting job after not working in the industry for the most recent couple of decades that pays more than $50k/yr—just as one example.
Lack of Own Occupation disability coverage is a dealbreaker for me.
As it is now, if you’ve got any other degree or training, the insurance company will do its best to terminate your disability payments after 2 years. Even if you’ve got an accounting degree that *theoretically* can pay 6 figures, try finding an accounting job after not working in the industry for the most recent couple of decades that pays more than $50k/yr—just as one example.
Lack of Own Occupation disability coverage is a dealbreaker for me.
Deal breaker
04-09-2018, 09:55 AM
#1340
Gets Weekends Off
Joined APC: Dec 2015
Posts: 497
Originally Posted by TurboFanMan
^^^^^Agree
Deal breaker
Deal breaker
In my opinion, we’ve been treated far too poorly to be settling. Especially in this environment when they are making obscene amounts of money and giving themselves such huge bonuses.
But I’ll read it before I make a decision.
Last edited by Missed Appch; 04-09-2018 at 10:28 AM.
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