Dump ERISA!
Good post Buck! I agree with you, and would like to add that there is a signing bonus: $150 per month on property, caps out at 25K. I'd also like to reiterate what you have said about the retirement insurance needing to go away. It does! That advice was given by lawyers advising 1108 during IBB. Sad to say,
its a scam and the idea of protection is an illusion. Many retirees are bogged down in litigation because the system is a nightmare. BO mentioned ERISA and the fact that most pilots are uneducated about the retiree insurance plan. Admittedly, I was as well so I have taken steps to correct that and would like to share what I've learned. It's a mistake to think it lasts a lifetime. It's only a bridge until Medicare kicks in and it often ends at the courthouse...
Those most affected are grandfathered in, but I
don't envy them that. Far better to take the company's 50% match for the "catch up" provision in the 401K which starts at age 50. That will be the replacement "plan" and we should all be grateful that the money will be there when we need it at retirement. Please google ERISA medical and see for yourself why you should be thankful for the Union's warning, here's some data to get you started---
Frequently Asked Questions - ERISA Governed Claim Denials
Q1: What Exactly Is ERISA?
A1: ERISA is an acronym for the
Employee Retirement Income Security Act of 1974. The body of ERISA law includes the federal statute 29 USC. 1001, et seq.; the federal regulations; and the "common law" (decisional law of the federal courts). ERISA was originally intended to address issues related to pension fund administration; however, today -- primarily as the result of federal judicial decisions over the past two decades -- ERISA controls or impacts practically all employee benefits in the private sector, including employer-sponsored health and disability insurance plans.
Q2: How does ERISA affect me?
A2: If you are a "plan participant", or a dependent, enrolled in an ERISA-governed "employee welfare benefit plan", ERISA
has a very direct and profound effect upon your rights to receive plan benefits.
Q3: What is an "Employee Welfare Benefit Plan"?
A3: Practically speaking, an "employee welfare benefit plan" is any plan of benefits provided by an employer in the private sector to an employee, including employer-sponsored medical and disability insurance coverage.
Q4: Doesn't ERISA protect my right to receive benefits under my medical or disability plan?
A4:
Yes, to an extent, but the protections of ERISA are rather obscure and minimal.
Although ERISA proclaims to give employees greater rights and protections, ERISA has actually stripped employees of many of their rights, particularly as against insurance companies who underwrite and/or administer medical or disability plans. The biggest problem is that the federal ERISA law pre-empts important state consumer insurance laws, relating to group medical or disability insurance, while at the same time there are no federal consumer insurance laws. Thus, by structuring practically all employer-sponsored insurance plans as "employee welfare benefit plans" under ERISA,
the insurance industry has, in a very ingenious way, carved out the single greatest immunity from civil liability ever devised.
Q5: If my insurance company wrongfully denies my claim for benefits, can't I sue the insurance company for "bad faith" and get punitive damages?
A5:
No. Not if your plan is governed by ERISA. The federal ERISA law pre-empts most state "Bad faith" lawsuits (and punitive damages) and there are no punitive damages available under ERISA,
no matter how oppressive an insurance company’s tactics and no matter how frivolous an insurance company’s claim denial.
http://members.aol.com/mmckuin/FAQs-page1.html
I found the above information toward the bottom of page 4 in google results after typing in ERISA medical. The previous entries all appeared to be lawsuit information--not what I expected! Typically, the only ones who actually appear to be
benefiting are the lawyers and the insurance companies--certainly not the consumers who are bogged down in legal fights. NJ pilots should be thankful that 1108 is looking out for your long-term interest.
Dumping ERISA now can save you money and headaches in the future.
Good Luck!
NJW
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