momalley81
Done spillt mah beer...
- Joined
- Sep 24, 2002
- Posts
- 256
Which is almost the same as you probably currently take home anyway since its tax free, right?
You are correct. That's the way it is designed to work.
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Which is almost the same as you probably currently take home anyway since its tax free, right?
You are correct. That's the way it is designed to work.
Employer paid LOL plan benefits are NOT tax free.
I am not talking about an employer paid plan. (Almost all the LOL plans that I know of are voluntary.)
If the premium is paid with after tax dollars by the pilot, the benefit cannot be taxed.
That's the way it works.
That being said if the premium is paid in after tax dollars then the benefit is usually paid at 60% of gross pay up to a certain amount. Those monies are not taxed because they have been paid with using after tax money.
Most major airline plans are not voluntary. Some are accelerated pension benefits and others are self insured employer paid plans. Few are voluntary fully insured plans.
Splert said:Also for the poster who started this thread compare the continuation of employer group health plan coverage for the LOL pilot and dependent. Most major airlines provide some form of continuation or portability of the employer group heath plan. This is very important.
SWA = Voluntary LOL plan.
AA = Voluntary LOL plan.
UPS = Voluntary LOL plan.
Those are 3 airlines with VOLUNTARY plans and I am quite positive there are more.
Since I fly for SWA and used to fly for AA I am well versed in both plans. I have also been in the Insurance Business since 2002 so I have just a little knowledge into how these plans work.
It is called COBRA. It is mandated by law to have continuation of Healthcare benefits for 29 months.
Now I’m afraid, very afraid.
CORBA is a short walk on a long pier for a pilot who suffers a LOL due to the number one reason pilots suffer a LOL - Coronary. Then there is the entire family of dependents. For instance a wife with cancer or a child with a developmental issue or is on ADD medication. CORBA is not the answer and IS the reason almost every Major airline offers a LOL pilot, spouse and dependents access to the group plan while they are on LOL/LTD. LUV doesn’t just drop you and neither did AA or UPS or UAL or NWA or DAL, get it.
I’m very familiar with LTDLOL and PMA plans at LUV and the plan at NWA, UAL, FedEx, UPS, AMR, B6, USAirways, AWA, Alaska, CAL, etc. Some are funded by the pilots and some are not in fact most are not.
The best plan would be a fully funded employer paid plan with an own occupation trigger and no offsets for additional income with the employee paying for a lump sum plan.
You see I have been in the business since 1988. Want my license number?
In my rush I mis-read your statement. For that I apologize.
When I first read your statement I interpreted that you were stating that the pilot automatically loses coverage for him/her and their family when the LOL kicks in. (Of course COBRA would not allow that) I don't know how I came up with that but when I re-read it, I understand what you are saying.
I will say however that I still disagree with you on most LOL plans not being voluntary. I am still finding that everyone is.
Once again my apologies.
I do however disagree with you on the LOL plan