FEDEX Retirement
01-09-2011, 10:55 AM
#22
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Joined APC: Aug 2006
Posts: 1,433
FDX MEC LTD benefits:
A. LTD BENEFIT PERCENTAGE 66.7%
B. MAXIMUM MONTHLY BENEFIT $14,500.
C. MINIMUM MONTHLY BENEFIT 15% of your Pre-disability Monthly Income.
However, if your Net Monthly Benefit plus Other Income Benefits and your monthly Recovery Work Earnings combined exceed 100% of your Pre-disability Monthly Income; the Minimum Monthly Benefit will be reduced; so that when combined with Other Income Benefits and your monthly Recovery Work Earnings; it will not exceed 100% of your Pre-disability Monthly Income. For the purposes of this paragraph; Pre-disability Monthly Income for Captains and First Officers who accept a medically-required seat change will include any contractual pay raise resulting from present or future labor agreements between the Employer and the FEDEX Master Executive Council they would have received as a Captain or First Officer; except for the medically-required seat change.
D. LTD BENEFIT QUALIFYING PERIOD
Your LTD Benefit Qualifying Period means the length of time you must be continuously Disabled before LTD Benefits become payable. A Benefit Qualifying Period begins on the day you become Disabled. During this period; no benefits are payable for your Disability; and you must be under the Regular and Appropriate Care of a Physician. We reserve the right and opportunity to examine you during the Benefit Qualifying Period; and to perform rehabilitation testing we determine is appropriate.
Your LTD Benefit Qualifying Period is the last to occur of:
1. The termination of your benefits under any salary continuation; or short term disability benefits plan sponsored by the Participating Employer;
2. The exhaustion of your accumulated sick leave days provided by the Participating Employer; or
3. For employees electing:
• Option 3 - 12 Months of Disability with Maximum Benefit to age 65.
• Option 4 - 24 Months of Disability with Maximum Benefit to age 65.
The option you elected is shown on your group long term disability enrollment form.
E. LTD MAXIMUM DURATION OF BENEFITS
Your LTD Maximum Duration of Benefits means the longest period of time for which LTD Benefits are payable for any one continuous period of Disability; whether from one or more causes. The LTD Maximum Duration of Benefits begins at the end of the LTD Benefit Qualifying Period.
Your LTD Maximum Duration of Benefits is determined as follows:
If your period of disability starts prior to the date you reach age 61, it will end the last day of the calendar month in which you reach age 65.
If your period of disability starts on or after the date you reach age 61, it will end with the expiration of the number of months of disability, after the elimination period is met, based on the following schedule:
Age When Period of Disability Starts
Months of Disability
61 but less than 62 48 months
62 but less than 63 42 months
63 but less than 64 36 months
64 but less than 65 30 months
65 but less than 66 24 months
66 but less than 67 21 months
67 but less than 68 18 months
68 but less than 69 15 months
69 and over 12 months
A. LTD BENEFIT PERCENTAGE 66.7%
B. MAXIMUM MONTHLY BENEFIT $14,500.
C. MINIMUM MONTHLY BENEFIT 15% of your Pre-disability Monthly Income.
However, if your Net Monthly Benefit plus Other Income Benefits and your monthly Recovery Work Earnings combined exceed 100% of your Pre-disability Monthly Income; the Minimum Monthly Benefit will be reduced; so that when combined with Other Income Benefits and your monthly Recovery Work Earnings; it will not exceed 100% of your Pre-disability Monthly Income. For the purposes of this paragraph; Pre-disability Monthly Income for Captains and First Officers who accept a medically-required seat change will include any contractual pay raise resulting from present or future labor agreements between the Employer and the FEDEX Master Executive Council they would have received as a Captain or First Officer; except for the medically-required seat change.
D. LTD BENEFIT QUALIFYING PERIOD
Your LTD Benefit Qualifying Period means the length of time you must be continuously Disabled before LTD Benefits become payable. A Benefit Qualifying Period begins on the day you become Disabled. During this period; no benefits are payable for your Disability; and you must be under the Regular and Appropriate Care of a Physician. We reserve the right and opportunity to examine you during the Benefit Qualifying Period; and to perform rehabilitation testing we determine is appropriate.
Your LTD Benefit Qualifying Period is the last to occur of:
1. The termination of your benefits under any salary continuation; or short term disability benefits plan sponsored by the Participating Employer;
2. The exhaustion of your accumulated sick leave days provided by the Participating Employer; or
3. For employees electing:
• Option 3 - 12 Months of Disability with Maximum Benefit to age 65.
• Option 4 - 24 Months of Disability with Maximum Benefit to age 65.
The option you elected is shown on your group long term disability enrollment form.
E. LTD MAXIMUM DURATION OF BENEFITS
Your LTD Maximum Duration of Benefits means the longest period of time for which LTD Benefits are payable for any one continuous period of Disability; whether from one or more causes. The LTD Maximum Duration of Benefits begins at the end of the LTD Benefit Qualifying Period.
Your LTD Maximum Duration of Benefits is determined as follows:
If your period of disability starts prior to the date you reach age 61, it will end the last day of the calendar month in which you reach age 65.
If your period of disability starts on or after the date you reach age 61, it will end with the expiration of the number of months of disability, after the elimination period is met, based on the following schedule:
Age When Period of Disability Starts
Months of Disability
61 but less than 62 48 months
62 but less than 63 42 months
63 but less than 64 36 months
64 but less than 65 30 months
65 but less than 66 24 months
66 but less than 67 21 months
67 but less than 68 18 months
68 but less than 69 15 months
69 and over 12 months
01-09-2011, 07:51 PM
#23
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,199
DLax,
As an example, say a 56 year old goes out. He will be allowed 5 years (it might have changed now, because of the age 65 rule, but I DON'T KNOW for sure) of LTD, whereas a guy 45 would get 15 years before he had to retire. The idea I believe is that if you're still on property past your 60th birthday, they give you 5 years of LTD from the date you went out. For those younger, you get LTD until your 60th birthday, then you must retire. We have a pilot whose still on LTD, and has been, since I got here in 1990. He obviously went out well prior to his 60th birthday.
As for the FEDEX MEC LTD Supplemental Insurance Plan, I personally don't have it, but thanks for the information about the open enrollment period. Hopefully those who have this insurance will take advantage of the age change if they decide to continue to work.
Yes, without question, the LTD is a tremendous benefit to those of us who cannot work and are under the legal retirement age of 60 AND who have not reached their 25 years of service. For those who have reached their 25 years, it's still a nice benefit, depending on how much they would make if they elected to retire and take their normal retirement. You must remember that the company pays you 60% (on LTD) for the first two years and then it drops to 50% for the remainder of your LTD, where the payment is based on the average of your highest 12 months, IN THE LAST 3 YEARS. So it's conceivable that someone could have had a higher high 5, which didn't include the last 3 years, and so they might be taking a large pay cut, to stay on LTD.
Suppose you have a guy who was a captain, for perhaps 10 years, until he couldn't hold a First Class medical, so he's been in the back seat for the past 3 years. In this case, he'd be getting much less on LTD than he would if he retired, especially if he had his 25 years. If he didn't, it might serve him to stay until he had to retire, so that he would increase his years of service, which would be seen in his retirement pay. I'd recommend speaking with the folks in Employee Benefits to get a true handle on this LTD stuff.
JJ
As an example, say a 56 year old goes out. He will be allowed 5 years (it might have changed now, because of the age 65 rule, but I DON'T KNOW for sure) of LTD, whereas a guy 45 would get 15 years before he had to retire. The idea I believe is that if you're still on property past your 60th birthday, they give you 5 years of LTD from the date you went out. For those younger, you get LTD until your 60th birthday, then you must retire. We have a pilot whose still on LTD, and has been, since I got here in 1990. He obviously went out well prior to his 60th birthday.
As for the FEDEX MEC LTD Supplemental Insurance Plan, I personally don't have it, but thanks for the information about the open enrollment period. Hopefully those who have this insurance will take advantage of the age change if they decide to continue to work.
Yes, without question, the LTD is a tremendous benefit to those of us who cannot work and are under the legal retirement age of 60 AND who have not reached their 25 years of service. For those who have reached their 25 years, it's still a nice benefit, depending on how much they would make if they elected to retire and take their normal retirement. You must remember that the company pays you 60% (on LTD) for the first two years and then it drops to 50% for the remainder of your LTD, where the payment is based on the average of your highest 12 months, IN THE LAST 3 YEARS. So it's conceivable that someone could have had a higher high 5, which didn't include the last 3 years, and so they might be taking a large pay cut, to stay on LTD.
Suppose you have a guy who was a captain, for perhaps 10 years, until he couldn't hold a First Class medical, so he's been in the back seat for the past 3 years. In this case, he'd be getting much less on LTD than he would if he retired, especially if he had his 25 years. If he didn't, it might serve him to stay until he had to retire, so that he would increase his years of service, which would be seen in his retirement pay. I'd recommend speaking with the folks in Employee Benefits to get a true handle on this LTD stuff.
JJ
I think this question got lost in the shuffle:
Do you get 7% B fund payments while on LTD?
01-09-2011, 07:54 PM
#24
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,199
FDX MEC LTD benefits:
A. LTD BENEFIT PERCENTAGE 66.7%
B. MAXIMUM MONTHLY BENEFIT $14,500.
C. MINIMUM MONTHLY BENEFIT 15% of your Pre-disability Monthly Income.
However, if your Net Monthly Benefit plus Other Income Benefits and your monthly Recovery Work Earnings combined exceed 100% of your Pre-disability Monthly Income; the Minimum Monthly Benefit will be reduced; so that when combined with Other Income Benefits and your monthly Recovery Work Earnings; it will not exceed 100% of your Pre-disability Monthly Income. For the purposes of this paragraph; Pre-disability Monthly Income for Captains and First Officers who accept a medically-required seat change will include any contractual pay raise resulting from present or future labor agreements between the Employer and the FEDEX Master Executive Council they would have received as a Captain or First Officer; except for the medically-required seat change.
D. LTD BENEFIT QUALIFYING PERIOD
Your LTD Benefit Qualifying Period means the length of time you must be continuously Disabled before LTD Benefits become payable. A Benefit Qualifying Period begins on the day you become Disabled. During this period; no benefits are payable for your Disability; and you must be under the Regular and Appropriate Care of a Physician. We reserve the right and opportunity to examine you during the Benefit Qualifying Period; and to perform rehabilitation testing we determine is appropriate.
Your LTD Benefit Qualifying Period is the last to occur of:
1. The termination of your benefits under any salary continuation; or short term disability benefits plan sponsored by the Participating Employer;
2. The exhaustion of your accumulated sick leave days provided by the Participating Employer; or
3. For employees electing:
• Option 3 - 12 Months of Disability with Maximum Benefit to age 65.
• Option 4 - 24 Months of Disability with Maximum Benefit to age 65.
The option you elected is shown on your group long term disability enrollment form.
E. LTD MAXIMUM DURATION OF BENEFITS
Your LTD Maximum Duration of Benefits means the longest period of time for which LTD Benefits are payable for any one continuous period of Disability; whether from one or more causes. The LTD Maximum Duration of Benefits begins at the end of the LTD Benefit Qualifying Period.
Your LTD Maximum Duration of Benefits is determined as follows:
If your period of disability starts prior to the date you reach age 61, it will end the last day of the calendar month in which you reach age 65.
If your period of disability starts on or after the date you reach age 61, it will end with the expiration of the number of months of disability, after the elimination period is met, based on the following schedule:
Age When Period of Disability Starts
Months of Disability
61 but less than 62 48 months
62 but less than 63 42 months
63 but less than 64 36 months
64 but less than 65 30 months
65 but less than 66 24 months
66 but less than 67 21 months
67 but less than 68 18 months
68 but less than 69 15 months
69 and over 12 months
A. LTD BENEFIT PERCENTAGE 66.7%
B. MAXIMUM MONTHLY BENEFIT $14,500.
C. MINIMUM MONTHLY BENEFIT 15% of your Pre-disability Monthly Income.
However, if your Net Monthly Benefit plus Other Income Benefits and your monthly Recovery Work Earnings combined exceed 100% of your Pre-disability Monthly Income; the Minimum Monthly Benefit will be reduced; so that when combined with Other Income Benefits and your monthly Recovery Work Earnings; it will not exceed 100% of your Pre-disability Monthly Income. For the purposes of this paragraph; Pre-disability Monthly Income for Captains and First Officers who accept a medically-required seat change will include any contractual pay raise resulting from present or future labor agreements between the Employer and the FEDEX Master Executive Council they would have received as a Captain or First Officer; except for the medically-required seat change.
D. LTD BENEFIT QUALIFYING PERIOD
Your LTD Benefit Qualifying Period means the length of time you must be continuously Disabled before LTD Benefits become payable. A Benefit Qualifying Period begins on the day you become Disabled. During this period; no benefits are payable for your Disability; and you must be under the Regular and Appropriate Care of a Physician. We reserve the right and opportunity to examine you during the Benefit Qualifying Period; and to perform rehabilitation testing we determine is appropriate.
Your LTD Benefit Qualifying Period is the last to occur of:
1. The termination of your benefits under any salary continuation; or short term disability benefits plan sponsored by the Participating Employer;
2. The exhaustion of your accumulated sick leave days provided by the Participating Employer; or
3. For employees electing:
• Option 3 - 12 Months of Disability with Maximum Benefit to age 65.
• Option 4 - 24 Months of Disability with Maximum Benefit to age 65.
The option you elected is shown on your group long term disability enrollment form.
E. LTD MAXIMUM DURATION OF BENEFITS
Your LTD Maximum Duration of Benefits means the longest period of time for which LTD Benefits are payable for any one continuous period of Disability; whether from one or more causes. The LTD Maximum Duration of Benefits begins at the end of the LTD Benefit Qualifying Period.
Your LTD Maximum Duration of Benefits is determined as follows:
If your period of disability starts prior to the date you reach age 61, it will end the last day of the calendar month in which you reach age 65.
If your period of disability starts on or after the date you reach age 61, it will end with the expiration of the number of months of disability, after the elimination period is met, based on the following schedule:
Age When Period of Disability Starts
Months of Disability
61 but less than 62 48 months
62 but less than 63 42 months
63 but less than 64 36 months
64 but less than 65 30 months
65 but less than 66 24 months
66 but less than 67 21 months
67 but less than 68 18 months
68 but less than 69 15 months
69 and over 12 months
...not the LTD benefits we get for "free" directly from the company..??
Thanks.
01-09-2011, 07:56 PM
#25
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,199
Given all that's been posted about this FEDEX MEC ALPA LTD Supplemental Insurance, who's got an opinion on it's value?
Worth it???
If so, to what age 60 or 65?
...and what waiting period --- 12 months or 24 months?
Always great to hear what others think...and why.
Worth it???
If so, to what age 60 or 65?
...and what waiting period --- 12 months or 24 months?
Always great to hear what others think...and why.
01-10-2011, 03:39 AM
#26
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Joined APC: Sep 2006
Position: Retired
Posts: 3,717
DLax,
No, you do not get any company payments to your B fund while on LTD. In fact, you don't even get a purple check. While on LTD, you get paid once a month (at the end of the month), and the check comes from Aetna Life Insurance Company on behalf of FedEx Disability Claim Unit.
JJ
No, you do not get any company payments to your B fund while on LTD. In fact, you don't even get a purple check. While on LTD, you get paid once a month (at the end of the month), and the check comes from Aetna Life Insurance Company on behalf of FedEx Disability Claim Unit.
JJ
01-10-2011, 06:12 AM
#27
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Joined APC: Aug 2006
Posts: 1,433
I prefer the 12 month waiting period. Depends on your situation.
Age 60 plan
12 month elimination period: $.65 per $100.00 of previous month’s pensionable earnings
24 month elimination period: $.395 per $100.00 of previous month’s pensionable earnings.
Age 65 is a little higher, I think $.74 per 100 (12 mo)
Unlike the Company’s disability payment, the FDX MEC benefit is based on the average of
your past 12 months’ pensionable earnings. Unless you were making over $260,986.95 per
year, your benefit will be 15 percent of your average income, tax-free. The FDX MEC
disability plan considers the FedEx disability benefit, then compares the greater of the
minimum benefit amount of 15% of pre-disability earnings, to the benefit amount required
to replace 66.7% of pre-disability earnings.
your past 12 months’ pensionable earnings. Unless you were making over $260,986.95 per
year, your benefit will be 15 percent of your average income, tax-free. The FDX MEC
disability plan considers the FedEx disability benefit, then compares the greater of the
minimum benefit amount of 15% of pre-disability earnings, to the benefit amount required
to replace 66.7% of pre-disability earnings.
01-10-2011, 09:20 AM
#28
Line Holder
Joined APC: Aug 2010
Position: MD-11 CAPT
Posts: 30
FYI, the old Harvey Watt plan would not pay after you turned age 60. Consequently, when I turned 58, with the 2 year exclusion period it would not pay out and I canceled it. The new ALPA plan will pay until age 65 so I am planning on getting back on the new LTD plan.
JJ. I'd like to add my thanks for a very well thought out discussion of taking LTD over retirement.
JJ. I'd like to add my thanks for a very well thought out discussion of taking LTD over retirement.
01-10-2011, 10:26 AM
#29
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Joined APC: Sep 2006
Position: Retired
Posts: 3,717
Spanky,
You're welcome, but please understand that I'm not advocating "taking long term disability over retirement." I was only pointing out how in my particular case, it made more sense for me to remain on LTD, than it would have to have retired. Hopefully everyone will make it to retirement age, whatever that is, without having to avail themselves of LTD. That said, it is a wonderful benefit that is available to those unfortunate enough to have to use it.
JJ
You're welcome, but please understand that I'm not advocating "taking long term disability over retirement." I was only pointing out how in my particular case, it made more sense for me to remain on LTD, than it would have to have retired. Hopefully everyone will make it to retirement age, whatever that is, without having to avail themselves of LTD. That said, it is a wonderful benefit that is available to those unfortunate enough to have to use it.
JJ
01-10-2011, 01:23 PM
#30
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Joined APC: Jul 2008
Posts: 102
Is anyone signing up for the new short term disability? If so, what options are you choosing and why? I'm sure its different with everyone, but, just looking for some insight regarding STD and LTD.
I was told that it may not be worth it with our existing insurance?
This is crazy, we can land an airplane in zero vis, but, I can't figure out what insurance coverages I need!
I was told that it may not be worth it with our existing insurance?
This is crazy, we can land an airplane in zero vis, but, I can't figure out what insurance coverages I need!
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