Flyinhigh

I have no dog in this hunt since I am already retired and on Medicare, but I was wondering what the active pilots would be willing to give up in a new contract to allow under 65 guys to have better access to healthcare. The current cost for a retiree and spouse to continue FedEx coverage is around $1100 per month for medical, dental and vision. Would you be willing to give up something so the company would pick up more of this cost? I guarantee you if the company would pay 80 percent of that cost, guys would leave way before 65 and you would see movement in all seats.

MaydayMark

I'll stick my toe in this pot of boiling water

I've been a long time opponent of AGE 65. I never intended to stay past 60 so there was ABSOLUTELY NOTHING in raising the retirement age for me. It has cost me considerably as far as bidding (permanent seat bid, monthly, training & vacation).

Now you want me to give up something else to lower the OVER 60 guys insurance costs.

You're joking … aren't you?

Flame away, I've got my fire fighting gear ready

satpak77

Is this the same company that had 77 year old FE's riding FE because they were age-mandatoried at age 60 before age 65 took effect (5 years before 65, by the way) ?

Uhhh.....

MaxKts

I thought the VEBA found was created just for that purpose. That one worked well didn't it!

DLax85

Please correct me if my data is wrong

Under the 2006 contract a pilot got a $25K VEBA fund if you were age 53 or over on Nov 1, 2006

Thus, the youngest would be 61 by Nov 1, 20014

This was sold as preemptive move to a possible change in the regulated age so guys over 60 would have a healthcare bridge and could retire before 65

What has this cohort done with that money?

Get that data, and you can predict how others may behave

(Side note: I don't disagree with the intent of that incentive; however, it should have been a "use or lose" benefit --- each year you stayed past 60, it should reduce $5K. Those $$ could be returned to general VEBA fund for all to use later)

MaydayMark

BTW … unless my understanding of the VEBA is wrong? I discussed it in detail with BC (the Negotiating Committee Chairman who negotiated this benefit for himself; he retired recently).

The VEBA benefit is a temporary benefit that will have to be re-negotiated in future contacts. In other words … what are current pilots willing to give up on order to keep this benefit?

Wasn't that the question that started this thread?

Hmmm …

Flyinhigh

I guess I got my answer. So, when guys who were under age 53 in 2006 elect to stay until age 65 for health care benefits no one should complain. Also, Mark, VEBA can't be used until you reach age 65 and can only be used to reimburse up to $112 per month for the cost of a Medicare Supplement.

FDXLAG

The age 53 VEBA was not negotiated in the 2011 contract. No one new got it, it is presumably gone. The post 65 Medicare veba supplement is forever, we are still paying out 50 cents an hour to help flyinghigh and other 65+ retirees. I hope it is there when I make it. Personally I think it would be great to help retired pilots 60 to medicare eligible. But it should not be a special carve out only available to certain guys (who happen to meet the profile of the NC chair) and it should not be available to pilots that don't retire.

Remember VEBA is just a term the IRS uses to usually describe certain categories of tax exempt reimbursement, it was not a term specific to our CBA:

"The VEBA is a mutual association of employees providing certain specified benefits to its members or their designated beneficiaries. It may be funded by the employees or their employer. The VEBA has existed in the tax law since the Revenue Act of 1928 when it was given exempt status under section 101(16) of the Act. Exemption for this entity was re-enacted by the Revenue Acts of 1932, 1934, 1936, and 1938. The VEBA was incorporated into the 1939 Code as IRC 101(16) and subsequently into the 1954 Code (the present Code), as amended to date, as IRC 501(c)(9)."

FDXLAG

Wow sounds expensive, was that after your $2500 Obamacare refund?

KnightFlyer

Hmm ... just did the retirement seminar ...

The HRA $25k debit card can be accessed later of age 59 or retirement. Needed to be age 53 before 1/1/07. Used for out of pocket medical, dental, and vision eligible expenses.

The Post-medicare plan PRP has ALPA reimbursing you up to $112/mon toward purchase of medicare supp plan (starts after age 65).

Yes, the buy-up Pre-65 premiums are high to keep what you have, but the High-deductible plans are $383 for you and spouse. The max out-of-pocket limits make the high deduct a real good option. The seminar leans in that direction.