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R&I Committee: "Know Your Benefits" (11/30/10)
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R&I Committee: "Know Your Benefits" (11/30/10)

Our last article reviewed the amount and duration of Long Term Disability provided in the CBA. To continue this review, please consider the following question: 

Are LTD benefits pensionable earnings? 


 

"Know Your Benefits"
November 30, 2010

 

Our last article reviewed the amount and duration of Long Term Disability provided in the CBA. To continue this review, please consider the following question: 

Are LTD benefits pensionable earnings? 

Once again, this question refers to our contractual LTD benefits and is separate from the FedEx MEC LTD supplement.

From the Pilot Benefit Book -

Retirement: Pension Plan and Non-Qualified Plans: Components of the Benefit Formulas

"Exclusions from eligible earnings include, but are not limited to:

Domestic and International Per Diem
Long Term Disability payments
PRSP Pre-tax/401(k) Employer Matching contributions
Contributions to the Pilots' Retirement Savings Plan's Sick Bank Account
PMPPP contributions
Excess Life Premiums
Earnings above the IRS compensation limit (earnings above the IRS compensation limit are covered under the Compensation Limit Plan).
Reimbursed expenses
Non-taxable amounts from a Pilot's Occupational Illness/Injury Sick Bank (OII) on or after January 1, 2007, as a result of a worker's compensation illness or injury."

So, Long Term Disability payments are not considered pensionable earnings under the FedEx Pension Plan. How about credited years of service?

From the Pilot Benefit Book -

Retirement: Pension Plan and Non-Qualified Plans: Credited Service

"Credited Years of Service During a Disability

.....If the Disability Began On or After June 1, 1992 -- You will receive credited service under the Pension Plan for a disability period that began on or after June 1, 1992, if you were eligible for a disability benefit under the terms of the Federal Express Corporation Short Term Disability Plan (STD), the Federal Express Corporation Long Term Disability Plan (LTD), Pilots’/Crew Members’ Supplementary Disability Coverage or Workers’ Compensation."

If you received disability benefits prior to June 1,1992, please refer to the Pilot Benefit Book for information on credited service under the Pension Plan.

More information on the LTD can be found in the Pilot Benefit Book and in the CBA - 27.J. Insurance Benefits - Disability Plan. 


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