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October 17, 2018
ANNUAL BENEFITS ENROLLMENT INFORMATION
Your FDX R&I Committee held the annual Benefits Fair in Memphis on October 3, 2018. For those of you who weren’t able to make it, the PowerPoint slides are available at fdx.alpa.org under the Retirement and Insurance Committee tab, Benefits Seminar & Resources.
The 2019 Pilot Enrollment Guide is also available at fdx.alpa.org, Benefits Seminar & Resources, on your iPad in the Secure Content Locker, on the FedEx Benefits Website and on pilot.fedex.com under the Contract Administration section.  
We will also be conducting Benefits and Retirement Seminars in ANC, IND and LAX. See below to register.
  • 10/21 LAX – Benefits and Retirement Seminars click here
  • 10/24 ANC – Benefits and Retirement Seminars click here
  • 10/26 IND – Benefits and Retirement Seminars click here
The 2019 FedEx Annual Benefits Enrollment period is October 18, 2018 – November 1, 2018
Quick Takeaways
Monthly Medical Premiums are GOING DOWN!  
Because of the clause in our CBA, the domestic medical premiums are going DOWN. This is a result of CBA 27.G.6 which provides a look back comparison of the previous year’s health costs projections and actual cost. If the actual costs fall out of a range from the projected costs, the following year rates adjust. Contract 2015 win!
FDX MEC Supplemental LTD Insurance:
Effective January 1, 2019, the plan will be moving to an age banding method for premiums. Under the new method, there will not be a rate increase. Below are the new rates.

 

Plan

Age Band

Renewal Rate

LTD with 12 Month Qualifying Period

<45

$.590

45-55

$1.240

55-59

$1.550

60+

$1.585

 

 

 

LTD with 24 Month Qualifying Period

<45

$.380

45-55

$.780

55-59

$.910

60+

$.932

The FDX MEC LTD Plan is an optional member-paid program designed by FDX pilots for FDX pilots, to provide income in the event you are no longer able to perform your duties as a pilot due to an illness or injury. The FDX MEC LTD Plan provides a benefit of 17% of your pre-disability income and is not reduced or limited in ways the negotiated LTD benefit is under the Federal Express Corporation Long Term Disability Plan for Pilots (CBA LTD Plan). In addition, since you are paying the premiums after-tax, the Plan’s 17% benefit is not subject to federal income tax.
Another benefit is that the portion of your income used to calculate the FDX MEC LTD Plan benefit is not limited to the Section 401(a)(17) value used under the CBA LTD Plan, which is currently $275,000 for 2018. It is only limited by a maximum annual income of just over a million dollars.
SPECIAL ENROLLMENT PERIOD for FDX MEC LTD Plan – November 1, 2018-December 31, 2018
During this time, you can enroll or move up from the 24-month to the 12-month waiting period without a normal Evidence of Insurability (EOI) process. Your current FAA Physical will allow you to enroll/move up without showing EOI. If you left the plan or decreased your benefit when the rates spiked, now is a great time to get back in. To get more information or to enroll, contact ALPA Member Insurance at 800-746-2572. Tell your friends!  
Hyatt Legal Services:
The Hyatt Legal Plan is still around with a few changes. The monthly cost will be slightly lower, and the coverage has expanded to include divorces and identity management services. In the past, you were automatically re-enrolled each year until you opted out. However, this year, you MUST re-enroll in order to keep the Hyatt Legal Services coverage. You will have the ability to enroll into the legal plan when you make your healthcare elections.  
ALPA Critical Illness & Accident Insurance:
Annual Enrollment for the ALPA Critical Illness & Accident Insurance (AC/CI) opens on November 1, 2018. Going forward pilots will be able to enroll throughout the year.
While these plans are not new, they bear revisiting. The AC/CI provide a tax-free cash payout for a qualifying event. You choose how, when and where to use the money. These plans are a great way to get added financial security at a low cost. Both plans are HSA and HRA compliant and work well with the high-deductible and out-of-pocket costs associated the Consumer Driven Health Plans (CDHP). These plans can also be used with the Buy Up, GeoBlue and Hawaii Plans (or in conjunction with non-FedEx health plans if you get your coverage elsewhere) to help cover costs not covered like applicable copays and coinsurance. Both plans are fully portable, meaning you can take them into retirement. If you desire to take one or both plans into retirement, you MUST enroll prior to your retirement.
AC/IC Wellness Benefit a pilot is eligible to receive a wellness benefit in the amount of:
  • $100 per plan for member,
  • $100 per plan for spouse, and
  • Each child’s benefit is 50% of the member’s wellness benefit amount up to $200 in total child benefits payable per plan.  
Each covered participant is eligible for the wellness benefit upon completion of their qualified health screening. While the AI/CI wellness program has many ways to do this, things you already do regularly like FAA physicals, well-woman exams and annual physicals will satisfy the health screening requirement under these plans. You will receive the wellness benefit described above for each plan you are enrolled in. For example, a pilot enrolled in both plans who submits a valid wellness claim would receive $100 under the AI Plan and $100 under the CI Plan, for a total of $200. The same goes for spouses and children at their wellness benefit level. Claiming wellness benefits under these plans makes a big difference in the net cost of these plans and can, in some age/benefit combinations, reduce the net cost to near or below zero.
Assuming a spouse and two children, where appropriate and each family member completed a qualifying health screening for the wellness benefit, below is the net monthly costs for the AI/CI plans:
Accident Insurance:

Member

Member & Spouse

Member & Children

Member & Family

 

$3.14/monthly

 

$3.24/monthly

 

$5.04/monthly

 

$5.24/monthly

Critically Illness Insurance:

 

Attained Age

Coverage Amount

$5,000

$10,000

$15,000

$20,000

30-39

-$ 4.63

$ -0.93

$ 2.77

$6.47

40-49

-$ 2.03

$ 4.27

$10.57

$16.87

50-59

$ 5.32

$18.97

$32.62

$46.27

60-64

$13.61

$35.57

$57.52

$79.47

65-69

$19.82

$47.97

$76.12

$104.27

Coverage begins on the first of the month after receipt of application for the Critical Illness and Accident Insurance plans. So, for those of you that enroll in time for coverage to be effective December 1, 2018, if you complete a qualifying wellness health screening between Dec. 1st and the end of 2018, you could claim a wellness benefit for this year. This benefit resets at the end of the year allowing you to claim wellness benefits again next year.
To get more information about either of these plans, contact ALPA Member Insurance at 800-746-2572 or enroll online at ALPA Critical Incident/Accident Insurance.
Your R&I Committee is here to help you make your elections for 2019. While we do not offer planning or advice, we will explain the available benefits to you so that you can make the best choice for your situation.  
If you have any questions, you can contact our Benefits Specialists, Ann Giannini and Brandy Hough, at (901) 752-8749 ext. 2207 and ext. 2208 or the R&I Committee at Fedex-R&IDL@alpa.org.
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