F50, You need to get the FDX MEC SUPPLEMENTAL LTD. Go to the R&I page after logging in to fdx.alpa.org

Thanks, I'm looking into it now. I really had no idea it was different than our ALPA Loss of License stuff that I buy... Seems complicated, but I'm glad I ran across this thread.

Thanks!

I am curious why you chose to go with the 12 month elimination period? The company's LTD policy goes all the way out to 24 months at no cost to you. Why would you pay the higher rate for 12 month ALPA coverage that would overlap the company's no-charge coverage?

As far as the Loss of License...I completely agree on that!!

Purple:

Small Point: Our LTD is a Negotiated Benefit. It is ours, not the Company's.

Second. There is NO 2 year waiting period for Contractual LTD. You are on it after you exhaust all Sick, Disability and vacation bank.

Disability events after 2006 get 60% for a 24 month period then reduced to 50%, maybe this is the 2 year thing your were thinking of. (section 27 j.) It is an average of the highest previous 36 months pay.

The MEC Supplemental Policy kicks in either at the 12 or 24 month point where Contractual LTD begins and it brings the Disabled pilot up to approximately 78-80% of pre-disability income.

Contractual LTD income is taxable, MEC supplemental income is not.

Once on LTD, B-Fund and 401K contributions will cease. (**Note: you will continue to accrue longevity for the A-plan, which is a nice benefit if you are permanently disabled with less than 25 years of service). Another argument for not going to a Big B-plan only retirement.

It's up to you to pay less and wait 24 months vice 12 months to start getting supplemental benefits. Everyone is different, but if I was diagnosed with a permanent grounding medical issue or god forbid a terminal disease, I would want to make as much money as soon as possible, for as long as possible.

BTW, think of our MEC LTD supplemental as Loss of medical insurance only.

ALPA National Loss of License insurance can be also be loss of medical but can also be Loss of License due to FAA certificate action. You are healthy but the FAA yanked your ticket. If that happens you don't get the contactual LTD or the MEC supplemental. Just pointing out the difference and reason for ALPA LOL.

Hope nobody needs it but it is good to know it is there and what you get.

What Red sez. The 12 month elimination period for the supplemental LTD just get you more income (tax-free) sooner.

It seems to me that the difference between the 24/12mo plans is basically just that (you get an extra year of tax free benefits, but it costs you nearly twice as much. That can basically be made up for with a basic lump sum LOL plan at a fraction of the cost can't it? It's maybe worth 30-60K for the average FDX pilot right?

This is one of the better discussions that I have seen on here. No b!tching, no complaining, no fighting....

Good stuff. Just a caution to do your own research and as always, never rely on what you read here as a sole source!!!

What's the point of having loss of license if you have supplemental LTD?

Red,

I agree with most of your previous post except for two points:

1) What you would actually be paid (for the first 24 months) is 60% of the average of the 12 highest consecutive months in the last 36 months preceding your disability, up to a federally mandated (IRS) maximum of $12,500 per month; and

2) you said "Small Point: Our LTD is a Negotiated Benefit. It is ours, not the Company's." This is not really true because any long term disability policy you may have, that you actually pay for, is non-taxable, whereas any LTD policy that is supplied to you, free of charge, such as the FedEx LTD benefit, is taxable.

Like Red said, LOL provides insurance if you are healthy but get your FAA ticket taken, as well as losing your medical. Personally, more concerned with a disability and I don't think the LOL is that good of a value. I went with our Supp LTD with 12 month elimination.