Fr8 Pup

Can someone please explain to me in purple nugget, North MS dummy terms how to calculate the cost of the MEC's LTD Plan? Also, are my GROSS earnings on my paycheck also my pensionable earnings?

Thanks,

Benefit Challenged Purple Nugget

RedeyeAV8r

This is a very simplifed version.
There are different ALPA LTD plans.
Most are sponsored by ALPA National.
FDX ALPA has it's own addtional LTD plan underwriiten with Harvey WAtt.
I will assume you are talking about the FDX HArvey watt plan, because it is different than the National plans.

The FDX plan premiums are based on prior income. Depending on which option you elected, 1 or 2 years, your will pay a premium based on a percentage of your pay, similar to your dues. It isn't the same every month. If you make alot this month, your premium is higher. If you make less then your premium is less.

Disability issues often become complicated. There are many steps that can and must be taken during any LTD issue. Insurance companies really don't want to pay out if they don't have to, so have your ducks in line. Document everything in triplicate and write down the name, time, date and subject of everyone you talk to concerning disability issues.......everyone!! Keep a Log!

If you know something is coming, call Janice Gentry at the MEC office. She is the benefit Specialist and no one knows the rules better......not even the Company folks.

When you go out on a medical..........
First thing you do is use up all your banked sick leave......
Then you begin using all your banked vacation........
Then you begin to use your Sick/Disability account (Being a New guy you probably don't have any) you can elect to reduce your monthly bank draw to make the bank last longer. ie, only use 36 hours per month, instead of a full 72 hours each month. In your case you have at most 72 hours in your Vacation bank, but it is probably less.

Once all these bank are exhausted you go on Company Disability, which is initially 60% of your average past income. I beleive there is a minimum time of employment to qualify for LTD. This 60 % is Taxable!

Now, if your enrolled in the Union LTD supplement plan and opted for the 1 year option (vise 2 year) at the one year mark the supplement will bring your income up to approx 75-80% of your former average earnings.

Everything the FDX ALPA supplement plan pays is tax free.

Eventaully the company LTD plan will drop to 50% of earnings.As the company LTD shifts downward to 50%, the FDX ALPA plan increases it;s premium payments to keep you in the 75-79% of former earnings ballpark. Depending on your seat, the more the ALPA policy kicks in the more actual income you take home because it is tax free.

Expect the insurance companies to hound you.

Hope this helps

FDXLAG

Redeye great answer, learned alot. Don't think it was the right question though.

Just from my past experience, the cost varies by how much you made last month. I seem to pay about $65 dollars when I make a $10K month. No research involved in this answer, just based on my perceptions. I suspect it also varies with age. Of course that could be the loss of license insurance. I get a bill I pay it.

Fr8 Pup

Y'alls explanations even made it easy for a fella educated in the MS public school system understand.

Thanks

Jetjok

As for pensionable earnings (PE), no, your gross earning is not your pensionable earning, your PE is somewhat less. As an example, I don't believe that per diem is included in PE, as well as a few other pays, but to get the exact correct answer, why not give the union a call. They will tell you exactly what goes into and what stays out of PE.

USNA84

RedEye,
Great post ... Thanks