I recall from the current contract road shows the person presenting said most airlines self insure.

 

When you discuss disability you need to understand four things.
1. Who funds the disability plan? Is it the company, the pilots or a combination?
2. Does your pension continue to be funded.
3. What percentage of your pay is covered and is that percentage calculated based on actual earnings or a artificial number like 40 hours. Is there a cap?
4. How long will disability be paid?

The plan at Delta pays 50% of FAE including all income and profit sharing until FAA mandated retirement age with no cap. 100% company funded with the pension plan fully funded.

Note that disability plans that are fully company funded are also taxed. If a disability plan is pilot funded it is not taxed. Of course if your company funds your plan you are free to buy an additional plan out of your pocket. This would provide you two incomes with one taxed and one untaxed.

 

It’s not a small fraction of your pilot group. Historically probably in excess of 50% of your pilot group will use disability.
The big airlines generally are required to set up a disability and survivorship fund. It’s normally held outside the company and will continue paying benefits even if the company files chapter 11 or liquidates.

 

At NK, it’s 60% of previous years earnings up to $15,000/month with the buy up (to age 65). 3 inadequacies:
-Income offsets, if you work somewhere else, that income will offset LTD benefits.
-Medical coverage for only the first 5 years at company rates, after that, you’re on your own.
-Zero company retirement contributions.

 

Yeah, you're right. When I said only a small fraction will use it I was thinking of using it for a very long time like over 5 years and all the way to retirement.

Definitely lots of guys will use it for short periods.

 

ALPA says 1 in 4 pilots lose their medical during their careers.

 

Agreed.

I went out for a while and applied and was denied based on the loss of medical being from a previous medical condition. It’s not great Insurance….

 

Right. But the average duration is probably 6 months. Our LTD covers that

 

So what did you do Dracir ? Not have any income while out or did you appeal it ?

 

Fought for it (and lost).

Worked other jobs to compensate until I got my medical back.

It’s company paid now so of course I’ll take it - and if in the situation again will try and use. But won’t hold my breath (or pay for any plus up).