MILITARY LEAVE BENEFIT SUMMARY

 

The following is comprised of excerpts from the FedEx Pilot Benefit book and various sections of USERRA.  Company policy can never supersede or be more restrictive than federal benefits as outlined in USERRA.

NOTIFICATION

USERRA 4312

Under USERRA, the employee (or an officer from his/her military unit) must give the employer advance notice (either written or verbal) of upcoming military service of any type. Otherwise, the employee will not be eligible for reemployment protection following the period of military service. The only exceptions to the notification requirement would be if the giving of notice is precluded by military necessity (e.g., a classified recall) or if it is otherwise impossible or unreasonable to give notice. These exceptions to the notice requirement are expected to be very rare. It is best for the employee to give an employer as much advance notice as possible. 

Generally speaking, the Uniformed Services Employment and Reemployment Rights Act (USERRA) provides that employees who return from a period of military service which does not exceed 5 years (or such longer period as may be required by the employee's military orders) will be restored to their previous employment position with such seniority, status, pay and benefits that would have accrued if they had not left for military service. 

In order to be afforded these protections under USERRA, affected employees must make application for reemployment and return to employment with the employer:

 

(1)  if the period of military service is less than 31 days, no later than the first full regularly scheduled work period on the first full calendar day following the completion of the period of military service (allowing 8 hours for transportation from the place of military service to the employee's residence);

 

(2)  if the period of military service is more than 30 days but less than 181 days, no later than 14 days after the completion of the period of military service; or

 

(3)  if the period of military service is greater than 180 days, no later than 90 days following the completion of the period of military service.

 

FedEx currently utilizes the Military Leave Request Form accessible on the www.pilot.fedex.com website.  This form may be utilized up to 48 hours prior to the beginning of the MLA period.  Inside that window, the crewmember must contact an ACP or Flight Duty Officer to notify them of their MLA request.  Although FedEx describes this form, as a Military Leave Request, USERRA provides that they cannot deny or disapprove your MLA request.  When military duties would require an employee to be absent from work for an extended period, during times of acute need, or when (in light of previous leaves) the requested military leave is cumulatively burdensome, the employer may contact the military commander of the employee’s military unit to determine if the duty could be rescheduled or performed by another member. If the military commander determines that the military duty cannot be rescheduled or canceled, the employer is required to permit the employee to perform his or her military duty.

DOCUMENTATION
The FedEx Crew Notification regarding your Military Leave Request states that you must submit a copy of your orders as soon as possible to your Flight Ops Assistant (FOA).  You are only required to submit documentation for periods of military leave that exceed 30 days.  However, the Military Affairs Committee and the Employer Support of the Guard and Reserve (ESGR) encourage members to provide documentation to FedEx as soon as available regardless of the length of service.     

 

JUMPSEAT PRIVILEGES
Pilots performing duty in the uniformed services of less than 31 days are not on leave of absence for purposes of applying this section. Pilots on extended military leaves of absence are allowed to jumpseat via a separate process and should contact their ACT’s to be included in the Jumpseat privilege. 

 

COVERAGE DURING A MILITARY LEAVE OF ABSENCE  (Pilot Benefit Book (PBB), page W-18)
If you are on an approved military leave of absence, some of your FedEx Express benefits can be continued.  The effect of a military leave of absence on your benefit plans is described here.  The effective date of active military service is the date of military leave of absence (MLOA) as shown in PRISM.  The end of active military service is that date provided under USERRA.

 

Health

(includes Medical,

Dental,

Vision,

Prescription Drug,

Mental Health/Substance Abuse

Benefits)

 

 

.

If you are enrolled in a Medical, Dental and/or Vision plan option and on MLOA, coverage will continue in your current Medical, Dental and/or Vision plan option and coverage tier as long as the required monthly contributions are paid. The cost of Medical, Dental and/or Vision coverage for you and your covered eligible dependents (if applicable) accumulates for the first 90 days and is deducted from your paycheck on a prorated basis when you return to work. 

NOTE: If, while on MLOA, you receive a Payroll generated check, deductions will be taken. 

If you remain on leave for more than 90 days, you will be sent a letter explaining your benefits and the cost to continue your coverage beyond the 90-day period. Failure to make required Medical, Dental and/or Vision payments, making partial payments, or having checks returned due to insufficient funds, will result in the following:

·         Your dependents' health coverage will end

·         You will be enrolled in the Base Plan and your Dental and Vision coverage, if applicable, will be canceled. You will not be able to change your Medical plan option until the next Annual Benefits Enrollment or until you have a Qualified Change in Family Status (Return from MLOA is a Qualified Change in Family Status).

·         During your MLOA, you will be eligible to add dependent Medical, Dental and/or Vision coverage only during the Annual Benefits Enrollment or if you have a Change in Family Status.

·         When you return from MLOA, you will be placed in the same Medical, Dental and/or Vision plan option and coverage tier you were enrolled in, if available, prior to your leave. You will have 31 days from the date you return from leave to change your coverage tier.

You may elect to opt out of Medical, Dental and/or Vision coverage when your MLOA begins.

MLOA is considered a Change in Family Status event, which allows you to drop dependent Medical, Dental and/or Vision coverage within 31 days of the start of the leave. You can access the FedEx Benefits Enrollment Web site within 31 days of beginning your MLOA to make your coverage tier elections. If a Change in Family Status occurs while you are on MLOA (for example, birth of a child, marriage, divorce, etc.), you have 31 days from the date of the event to add or drop dependent Medical, Dental and/or Vision coverage consistent with the Change in Family Status event. The cost of the new Medical, Dental and/or Vision coverage will begin to accumulate for a maximum of 90 days from the start of your leave. If you want to add dependent Medical, Dental and/or Vision coverage when you return from leave, you must make your Medical, Dental and/or Vision coverage tier elections within 31 days of your return date.  

·         If you take leave to perform service in the uniformed services, FedEx will continue to maintain your Medical, Dental and/or Vision coverage provided that you continue to pay the pilot portion of the premium during your military leave.

·         Charges incurred in connection with an illness or injury resulting from service in the armed forces are covered under TRICARE and excluded under FedEx Express coverage. FedEx Express coverage applies for nonmilitary-related illnesses or injuries not covered by the military. 

Dependent Coverage:

      FedEx Express coverage continues as long as the required Medical, Dental and/or Vision premium is paid. This cost is the same as when you were active at work. The cost automatically accrues for the first 90 days. Thereafter, a billing notification will be sent to your home address and monthly premium payment will be required to continue coverage. Costs accrued during the first 90 days will be payroll deducted when you return to active work. If you do not wish to continue Medical, Dental and/or Vision dependent coverage, notify Pilot Benefits Administration at 1-866-795-6353 or 1-901- 434-6353 in the Memphis area within 31 days of your MLOA. Upon your return to employment, you will have 31 days to re-elect dependent Medical, Dental and/or Vision coverage. If you do not cancel within the 31 days and your monthly premiums are not received, your dependent Medical, Dental and/or Vision coverage will end.

When you return from MLOA you will be placed in the same coverage tier you were enrolled in prior to your leave. You will have 31-days from the date you return from leave to change your coverage tier.

       MLOA is considered a Qualified Change in Family Status which allows you to add or drop dependent coverage within 31 days of the start or end of the MLOA.

       A dependent spouse or child in active military service of any country is not an eligible dependent. If your covered dependent is on active duty, Medical, Dental and/or Vision coverage for this dependent ends. You may wish to drop this dependent's coverage during his/her active duty to avoid paying additional premiums. Notify Pilot Benefits Administration within 31 days of your dependent's start of or return from active duty.


See “Coverage During a Leave of Absence – Medical, Nonmedical or Military” in the “Health” section of the PBB, starting on page H-15 for more details.
 

Retiree Health Coverage (eligibility)

Your MLOA will be included in determining your years of continuous service for Retiree Health Coverage eligibility.

Long Term Disability (LTD), includes
Supplementary
Disability Benefit

Coverage ends effective the date of MLOA as shown in PRISM. Coverage will be reinstated upon your return to active work. See “Disability,” section of the PBB, starting on page D-3 for more details.

Basic Life Insurance

Coverage continues at no cost. No exclusions. See “Rules Applicable to All Insurance Plans–For Military Leave of Absence” section of the PBB, starting on page L-2 for more details.

Optional Life Insurance

Coverage continues with no exclusions as long as the required premium is paid. This cost is the same as when you were actively at work. The cost automatically accrues for the first 90 days. Thereafter, a billing notification will be sent to your home address and monthly premium payment will be required to continue coverage. Costs accrued during the first 90 days will be payroll deducted when you return to active work.

If monthly premiums are not received, you and your dependents' coverage, if applicable, will end. If you wish to reenroll when you return to active work, you must enroll within 31 days after you return to active work or Proof of Insurability forms and evidence satisfactory to Prudential will be required. 

If you are not presently enrolled in Optional Life and wish to enroll, there will be no prejudice due to your activation status, however, the approval process, which could require a request for medical records and a physical exam, must be completed prior to the beginning of your leave.  

A dependent spouse or child in active military service of any country is not an eligible dependent. If covering a spouse in active military service, notify Pilot Benefits Administration. 

See “Rules Applicable to All Insurance Plans – For Military Leave of Absence” section of the PBB, starting on page L-2 for more details.

Basic Accidental Death
and Dismemberment
(AD&D)

You continue to participate in the plan at no cost. Death or injury while on active service in the military is not covered. However, in the event of death or injury during the first 60 days of active service in the National Guard or a Reserve Unit, your loss will be covered, unless caused by or resulting from declared or undeclared war or an act of either within the geographic limits, territorial waters or the airspace above the United States.

 See “Rules Applicable to All Insurance Plans – For Military Leave of Absence” section of the PBB, starting on page L-2 for more details.

Optional Accidental Death
and Dismemberment
(AD&D)

Coverage continues as long as the required premium is paid. The same policy provisions stated above in Basic AD&D also apply to Optional AD&D for the Pilot.  

Dependent coverage continues as long as the required Pilot & Dependent premium is paid. This cost is the same as when you were active at work. The cost automatically accrues for the first 90 days. Thereafter, a billing notification will be sent to your home address as listed in PRISM and monthly premium payment will be required to continue coverage. Costs accrued during the first 90 days will be payroll deducted when you return to active work. If monthly premiums are not received, your and your dependents' coverage will end. If you wish to reenroll when you return to active work, coverage will resume on the first day of the month following your request to reenroll. If you are not enrolled in Optional AD&D and wish to enroll, coverage will begin on the first day of the month following your request as long as you are not on a leave of absence on the effective date.

The following exclusions apply to continued dependent coverage:

·         A dependent spouse or child on active military service of any country is not an eligible dependent. If covering a dependent on active military service, notify Pilot Benefits Administration.

·         Declared or undeclared war or an act of either within the geographic limits, territorial waters or the airspace above the United States.

See “Rules Applicable to All Insurance Plans – For Military Leave of Absence” section of the PBB, starting on page L-2 for more details.
 

Business Travel Accident

Losses caused by or resulting from injuries sustained while serving in the armed forces are excluded. See “Rules Applicable to All Insurance Plans – For Military Leave of Absence” section of the PBB, starting on page L-2 for more details.

Pension Plan

Your MLOA will be included in determining your years of credited service for eligibility, vesting and benefit accrual if you return to employment within the period specified under Federal law after the date you are released from active duty and have satisfied the requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA).

In the event of death during your MLOA, your accrued benefit will be based on your years of credited service for benefit accrual up to the date of your death. If you are unmarried, no benefits are payable to a beneficiary. If you are married, a portion of your vested benefit will be paid monthly to your spouse. Your surviving spouse will receive a monthly pension based on your credited service and average earnings on your date of death. The benefit will be calculated as if you had chosen the 50% Joint and Survivor Annuity. Payment can begin on the first day of the month after:

 • Your date of death, if you die on or after your early retirement age, or
 • Your early retirement date, if you die before you were eligible for early retirement. 

See “Crediting Hours During Active Military Service” section of the Pilot Benefit Book, starting on page R-8 for more details.  Contact FedEx Retirement Service Center at 1-866-303-0556.

 

For additional information, refer to the attached December 9, 2008, Settlement Agreement: Effect of Potential Crew Status Changes on Imputed Earnings and Signing Bonus Calculation.  

Pilots’ Retirement Savings Plan (PRSP)

(formerly the Profit Sharing Plan)

If you return to employment and have satisfied the requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA) within the period specified after you are released from active duty, you may make-up any missed Pre-tax/401(k), After-tax, and if eligible, Catch-up contributions. Make-up contributions are calculated using the average of your 12 months eligible earnings (or all if less than 12 months) immediately prior to the MLOA.

Any missed Employer Matching contributions on your Pre-tax/401(k) contributions will be credited monthly as you make up contributions. Your loan payments will be suspended while you are on MLOA. In order for an obligation or liability of a service member to be subject to the interest rate limitation set forth under the Service members' Civil Relief Act, the service member shall provide to the Plan written notice and a copy of the military orders calling the service member to military service and any orders further extending military service, not later than 180 days after the date of the service member's termination or release from military service. Upon receipt of written notice and a copy of orders calling a service member to military service, the Plan shall treat the debt in accordance with subsection (a) of the Service members Civil Relief Act, effective as of the date on which the service member is called to military service. 

See “Benefits upon Return from a Military Leave of Absence (MLOA),” section of the PBB, starting on page R- 55, and “Loan Default Rules” section of the PBB, starting on page starting on page R-70 for more details. Contact Vanguard at 1-800-523-1188 or www.vanguard.com.

 

For additional information, refer to the attached December 9, 2008, Settlement Agreement: Effect of Potential Crew Status Changes on Imputed Earnings and Signing Bonus Calculation.

Pilots’ Money Purchase

Pension Plan (PMPPP)

If you return to employment and have satisfied the requirements of the Uniformed Services Employment and Reemployment Rights Act (USERRA) within the period specified after you are released from active duty, PMPPP contributions will reflect the period of your military service. In the event of death during your MLOA, any contributions missed during your MLOA up to the date of your death will be credited to your account.

If applicable, any contributions missed during your MLOA will be made by using the average of your 12 months eligible earnings (or all if less than 12 months) immediately prior to your MLOA.

 

MLOA make-up contributions will be credited to your account within the time frame required by USERRA following your return to active work or the notification of your death is updated in PRISM.

 

See “Benefits upon Return from a Military Leave of Absence (MLOA),” starting on page R-55 for more details.

Contact Vanguard at 1-800-523-1188 or www.vanguard.com.

 

For additional information, refer to the attached December 9, 2008, Settlement Agreement: Effect of Potential Crew Status Changes on Imputed Earnings and Signing Bonus Calculation.  

Dependent Care Reimbursement Account

 

Payroll deductions stop. You may continue to send eligible claims for dependent care expenses directly to WageWorks in accordance with Plan rules. When you return to work, if you do not reenroll within 31 days, you are not allowed to enroll for the rest of the calendar year, unless you have a Change in Family Status event and make your election within 31 days following the event date.  See “DCRA” in the “Other Benefit Plans, Programs and Services” section of the PBB, starting on page O-3 for more details. Contact WageWorks at 1-877-924-3967 or www.wageworks.com

Health Care Savings
Account for Pilots

Payroll deductions stop. You may continue to send eligible claims for health care expenses directly to WageWorks in accordance with Plan rules. Your HCSA contributions will automatically accrue for the first 90 days of your military leave. You will be sent a billing statement after the first 90 days giving you an opportunity to continue HCSA participation. You must remit your HCSA contributions to Pilot Benefits Administration to continue to file eligible expenses after the first 90 day period. If your HCSA contributions are not received by the deadline given in your billing statement, your participation will end and you cannot reenroll until the next annual enrollment period. If you return to work within the same calendar year, the amount accrued for the first 90 days will be deducted from your check on a percentage basis.  See “HCSA” in the “Other Benefit Plans, Programs and Services” section of the PBB, starting on page O-10 for more details. Contact WageWorks at 1-877-924-3967 or www.wageworks.com
 

Credit Association

Contact Credit Association for information on account. For Customer Service, call 1-901- 344-2500 from the Memphis area or toll-free, nationwide 1-800-228-8513. http://www.fecca.com/

Employee Stock Purchase Plan

Payroll deductions stop. Deductions begin again when you return to work. See “ESPP” information in the “Other Benefit Plans, Programs and Services” section of the PBB, starting of the PBB, starting on page O-34 for more details.  Contact FedEx Intranet home page (keyword: ESPP) FedEx Corporation Finance Department at 1-901-818-7100.

Global Travel

Privileges suspended. See “Global Travel” information in the “Other Benefit Plans, Programs and Services” section of the PBB, starting on page O-36 for more details. Contact FedEx Express Intranet site (keyword: global travel) or 1-901-369-3600.

Employee Reduced-rate Shipping

Privileges continue. See “Employee Reduced-rate Shipping” information in the “Other Benefit Plans, Programs and Services” section of the PBB, starting on page O-34 for more details.  Contact FedEx Shipping online at the FedEx portal or by notifying FedEx Express Revenue Services at 1-800-622-1147.

METPAY Program (Voluntary Personal Property Insurance)

Payroll deductions stop. May continue coverage by converting to monthly checking account deductions or home billing. See “METPAY” information in the “Other Benefit Plans, Programs and Services” section of the PBB, starting on page O-47 for more details. Contact MetLife Auto, Home, Personal Property at 1-800-438-6388 or www.metlife.com/mybenefits

Group Long-Term Care Insurance

Payroll deductions stop. May continue coverage by converting to monthly checking account deductions or home billing. See “LTCI” information in the “Other Benefit Plans, Programs and Services” section of the PBB, starting on page O-46 for more details. Contact MetLife Long-term care insurance at 1-800-438-6388 or www.metlife.com/mybenefits

Group Legal Services

 

Payroll deductions stop. May continue coverage by converting to monthly checking account deductions or home billing.  See “GLSP” information in the “Other Benefit Plans, Programs and Services” section of the PBB, starting on page O-38 for more details. Contact MetLaw Prepaid Group Legal Services at 1-800-438-6388 or www.metlife.com/mybenefits

Tuition Assistance

 

Coverage ends, see the “Tuition Assistance Program” section in “Other Benefits and Services,” section of the PBB, starting on page O-50 for more details. You may be eligible for reimbursement for courses which began or ended during a leave. Courses which both began and ended during a leave are not eligible. You are not eligible for reimbursement if you are on leave during the entire course.   Contact Tuition reimbursement at 1-901-434-9822


NOTE: 
Please make certain that you or your family notifies FedEx Express Pilot Benefits Administration at 1-866-795-6353, or 1-901-434-6353 in the Memphis area, of any address change during your MLOA.

 

Generally speaking, the Uniformed Services Employment and Reemployment Rights Act (USERRA) provides that employees who return from a period of military service which does not exceed 5 years (or such longer period as may be required by the employee's military orders) will be restored to their previous employment position with such seniority, status, pay and benefits that would have accrued if they had not left for military service.

 

In order to be afforded these protections under USERRA, affected employees must make application for reemployment and return to employment with the employer:

(1)    if the period of military service is less than 31 days, no later than the first full regularly scheduled work period on the first full calendar day following the completion of the period of military service (allowing 8 hours for transportation from the place of military service to the employee's residence);

(2)    if the period of military service is more than 30 days but less than 181 days, no later than 14 days after the completion of the period of military service; or

(3)    if the period of military service is greater than 180 days, no later than 90 days following the completion of the period of military service.