Noworkallplay

Short answer is actual earnings. Because its based on actual earnings prior to going on LTD a future hypothetical pay increase doesn’t matter.

“A pilot shall be eligible for LTD Plan benefits upon exhaustion of his regular and disability sick accounts, as described in Section 14, or upon his experiencing a seat change or upon moving to a non-pilot position because of disability, as described in the LTD Plan . Except as provided in Section 27.J.7., disability benefits paid to pilots who are disabled prior to October 30, 2006, shall be governed by the terms of the disability plans in effect on the date of commencement of the dis- ability . Pilots who become disabled on or after October 30, 2006, shall be governed by the provisions below .
LTD Plan benefits payable to a pilot whose disability commences on or after October 30, 2006, shall equal 60% of monthly earnings, as de- scribed in Section 27.J.6., for the first 24 months that a pilot is eligible to receive benefits under the LTD Plan, subject to the limits in Section 27.J.7. Thereafter, benefits payable to a pilot who becomes disabled and continues to have an occupational disability shall equal 50% of monthly earnings, as described in Section 27 .J .6 ., and subject to the limits in Section 27.J.7. Such benefits shall be paid through the earlier of the date on which such pilot (1) ceases to be disabled, or (2) the date on which the pilot attains age 65 .
In order for a pilot to continue to be eligible for a disability benefit under the LTD Plan, the pilot must fully cooperate with the Claims Paying Administrator, in coordination with the Aeromedical Advisor, and must diligently seek restoration of any required license or medical certificate to allow the pilot to return to work.
The Company shall pay the full cost of such coverage .
Monthly earnings shall continue to be defined as a pilot’s basic monthly compensation, i .e ., the 12 highest consecutive months out of the 36 consecutive months preceding the disability period .”

Noworkallplay

The supplemental is not taxed so its really like 23-25% depending on what you’re earnings had been prior to disability. The supplemental is also not earnings capped by 401.a.17 IRS limits like the primary disability is.

Noworkallplay

Thanks for asking. FDX LTD plan is funded by the company not the pilot. Its only limited by the 401.a.17 numbers set forth by the IRS. Our optional supplemental is not taxed and not limited by the IRS cap. It also includes pension accrual for years of service while out on LTD.

sailingfun

Is the actual payout limited to the 401 cap or is the FAE calculation limited by that number. If the later it would be a pretty severe restriction. If the former it should not effect most pilots.

busdriver12

I’m not sure if anyone specifically addressed the earnings cap. It used to be 260K, don’t know if it has gone up. So 60% of 260K is 156K as the max you would be paid out on LTD for the first two years.

Noworkallplay

Its the former per section 27.J.7. so no big deal for most. Plus the supplemental on top of that which is not restricted by any limits plus the A plan YOS accrual.

Noworkallplay

From my understanding the payout is limited to 401.a.17 which is 305k for 2022.

Section 27.J “A pilot’s monthly LTD Plan benefit during the first 24 months of disability may not exceed 60% of the monthly compensation limit set forth in Code § 401(a)(17)” after that its 50%

cskafan123

This is exactly what I was looking for. Thank you !!! Looks like your LTD combined with supplemental insurance and an A plan make you have the best LTD plan in the industry. So if one loses his/her medical they are financially set for life!

One more thing. Who is your supplemental Loss of license provider? Does it go through the union and is there a medical exam required to enroll?

Thanks you guys and gals and Merry Christmas!

Noworkallplay

It has been known to be best in class haha. No physical exam needed. Im not sure who the company is but the supplemental is an FDX ALPA specific plan not available to anyone else in ALPA since it was negotiated by FDX ALPA.

Noworkallplay

What we have is not typical. Look at the contract comparison document on negotiations web page. What we have combined with the supplemental and A plan accrual is far superior to anything else.

For a good example use the average pilot who most likely would use this benefit. Use the information I posted above.

Age - 50-55 (WB Captain)

YOS - 10-15 (has his high 5)

Average last 12 months - 400k