UPS Long Term Disability Plan?

[330Driver]

A question for the UPS folks:

I have been reviewing the new UPS pilot contract, but I can not find any details on Long Term Disability coverage (LTD) for pilots. I can find information regarding a 20 month LOL benefit, but I am assuming that UPS also offers a comprehensive LTD benefit plan for those pilots who lose their FAA medical certification. Most major airlines provide a plan which pays LTD benefits until the pilot reaches retirement age.

So......I was wondering if UPS does offer such an LTD plan, and if so where can I find more details? The reason I ask is that I have a UPS interview coming up soon and I am attempting to research the pay/benefits package.

Thanks.!

 

[Big Beer Belly]

So......I was wondering if UPS does offer such an LTD plan, and if so where can I find more details?

UPS does not offer LTD insurance as a provided benefit. Most purchase protection privately or through an IPA negotiated plan.

Good luck on your interview.

BBB

 

[L'il J.Seinfeld]

The LTD plan is very, very cheap. It pays 2/3 of your guarantee until you reach 65. I thought it was through UPS and not the union, but I am not sure. I would have to defer to BBB.

You only get 2/3 of guarantee but it is not taxed, so it amounts to the same take home pay. Also, our guarantee equates to 81 hours a month, so once on 2d year pay your disability pay would be 75k per year net.

Benefits and pay are the very best part of this job. Unions have had a very good track record with getting great bennies from UPS.

 

[ChinaClipper]

Be Careful!

Some LTD's are only if you cannot find ANY type of employment! Some folks who can't hold an FAA Med aren't "disabled" by some plans definitions. Check the wording carefully! BTW I don't know jack about UPS bennies, but I am a bit of an expert on Big Insurance Co's BS!

 

[Big Beer Belly]

Some LTD's are only if you cannot find ANY type of employment! Some folks who can't hold an FAA Med aren't "disabled" by some plans definitions. Check the wording carefully! BTW I don't know jack about UPS bennies, but I am a bit of an expert on Big Insurance Co's BS!

Excellent point! BUT, in this case our policy pays if you cannot obtain employment as a 121 pilot. You can collect LTD and sell pipe fittings at Home Depot, for instance.

BBB

 

[330Driver]

Hey BBB,

So if I understand correctly the only LTD plan available at UPS is a group plan available to IPA members only. Do you know if this plan is available to new-hires, or only after a year of so of membership?

Thanks for your assistance.

 

[L'il J.Seinfeld]

The plan is available to newhires, who technically are not in the union yet. I know that is true because I now can remember signing up for it.

 

[AV80R]

Ltd @ Ups

I agree with L'il Seinfeld – our LTD plan is very cheap and it is available to new hires as well. I signed up for it during our “welcome to UPS” dinner with the union which was our day 6 at UPS I think. When I was signing up I actually followed up with a phone call to double check how the plan worked because I had my doubts - it sounded too good to be true.

Basically, unlike many other plans (including one at a previous airline) – we cannot be “forced” into another profession. It specifically pertains to airline pilot position so if for whatever reason we lose our 1st class medical (or 2nd if a "domestic" fo - in other words on a fleet that doesn't utilize IROs) we’ll be getting 2/3 of our guarantee until we turn 65. And like LJS said our guarantee is 75 hours times 13.

The LTD insurance I had in the past would let me stay at home for a couple of years, and then I’d have to look into being retrained to do something else if I couldn’t get my medical back. No so with our plan and I think it’s great.

Let’s say someone is on his/her second year pay in 2010 when he/she loses the first class medical. The payments would be 2/3 of 128,700 (132*75*13) or $85,800 tax-free until age 65. That’s how it was explained to me.

Second year FO pay in
2008: $112/hr
2009: $122/hr
2010: $132/hr
2011: $143/hr
2012: $149/hr


So if I understand correctly the only LTD plan available at UPS is a group plan available to IPA members only...

I’m not sure about that, we had a few new-hire managers in our class and they were talking about the LTD as well, and it sounded almost identical to what we had. I think that maybe IPA and UPS work together on this plan? I don’t know, I’m just guessing…

 

[L'il J.Seinfeld]

The union has worked so that your pay while on LTD increases. You will be paid 2/3 of whatever the current pay is for the seat you were in. For example, if you left as a year 3 FO you will always be paid as a year 3 FO but at the current rates and not the rates when you left.

 

[AV80R]

Correct, that's what I was told as well but forgot to mention. Like I said, I think our LTD is awesome!

The union has worked so that your pay while on LTD increases. You will be paid 2/3 of whatever the current pay is for the seat you were in. For example, if you left as a year 3 FO you will always be paid as a year 3 FO but at the current rates and not the rates when you left.

 

[capt. megadeth]

For example, if you left as a year 3 FO you will always be paid as a year 3 FO but at the current rates and not the rates when you left.

That's good. I didn't know that.

 

[330Driver]

Thanks to all for the great info. I can find no mention of LTD in the IPA contract, so I must assume that the LTD plan is a stand-alone group policy offered soley thru the IPA.

For you UPS folks that actually have this coverage, have you ever been provided with some type of plan documentation? In other words, what source did you reference for the details that you mentioned in the previous posts?

Cheers!

 

[L'il J.Seinfeld]

IPA LONG – TERM DISABILITY PROGRAM

Effective June 1, 2004, the IPA Executive Board concluded an agreement with Anthem Life Insurance Company to continue offering Long-Term Disability Insurance coverage to IPA’s flight crewmembers. Many months have been spent reviewing competitive proposals from several major insurers, and it is our belief that Anthem will continue to provide us with the best commercial Long-Term Disability coverage available to any pilot group in America.

Coverage will continue to be available on an elective basis to all active Captains, First Officers, Second Officers/PFEs working for UPS who are members in good standing of IPA. Premiums are $1.56 per $100 of guarantee, and are paid by each crewmember via direct payroll deduction. Premiums and benefits are based on a crewmember’s monthly guarantee, as derived from Article 12 of the current collective bargaining agreement.

Highlights of the Anthem LTD program are:
BENEFIT PERCENTAGE 66 2/3% of monthly guarantee
MONTHLY MAXIUMUM BENEFIT $10,000
WAITING PERIOD PRIOR TO BENEFITS 24 months (during this period Mutual Aid Plan and UPS Loss of License benefits are available)
BENEFIT DURATION For Captains/First Officers to age 60, however benefits will be payable until age 65 (but not less than one year) if the insured is unable to perform the duties of a Second Officer/PFE, or for the seat assignment permitted under FAR part 121 (Age 60 rule)
BENEFIT INTEGRATION APPROACH Offset for other earned income, full family Social Security and UPS/IPA Defined Benefit Pension Plan. NO offset for military pensions, military disability, NG/Reserve income, UPS/IPA 401k and Defined Contribution Pension plans, Individual or Association disability plans, personal investment income, IRAs, TSAs, and some limited personal business income etc.
DEFINITION OF DISABILITY Injury or sickness preventing insured from performing duties of own occupation (Captain, F/O, S/O, PFE)
PARTIAL DISABILITY Performing some, but not all of duties of own, or any occupation, and earning less than 80% of pre-disability guarantee
MENTAL/NERVOUS CONDITIONS Full coverage in-patient; 2 years out-patient
PRE-EXISTING CONDITIONS 3 months/6 months/12 months
OTHER PROVISIONS Can break waiting period by up to 120 days of return to work. No cost of living adjustment. Guarantee for benefit calculation will be set two years (allowing for increases due to longevity raises)
OTHER PROVISIONS Waiver of premium after 6 months of disability. 3 month survivor benefit. Disability case management. Rehabilitation program. Social Security assistance.
EXISTING PLAN CHANGES Increased monthly maximum, elimination of strike provision that was initiated by US Life, clarifying language for termination of benefits and clarifying language for benefits for other conditions
PREMIUM $1.56 per $100 of monthly guarantee

WHO IS ANTHEM LIFE?
Anthem Life is a specialist in group life insurance and disability income products. They do not offer health care products or services. Their specialization enables them to totally focus on protecting and improving the financial security of the customers they serve. Their goal is to provide an exceptional customer experience by delivering high-quality products and expert services designed to meet the specific needs of the groups and group members we protect. At Anthem Life their mission is to provide the people they serve with financial protection and security.

Anthem Life provides insurance products and services to over 40,000 groups. In 2003, Anthem Life’s sales exceeded $27 million in annualized premiums. They are admitted as a life and health insurance company in 47 states and the District of Columbia. As a subsidiary of Anthem, Inc., the fifth largest publicly traded health benefits company in the United States, they have the strength and capacity to deliver on their promises. The insurance and financial industries’ most respected rating agencies continue to recognize Anthem’s financial strength. Anthem has earned ratings of “A1” from Moody’s, “A” from Standard and Poor’s, and AA- from Fitch (formerly Duff and Phelps). Anthem Life has also earned an “A” (Excellent) rating from A.M. Best Company, the oldest and most recognized insurance rating organization. This rating reflects a company’s financial strength and ability
to meet its contractual obligations.

Anthem Life serves a wide variety of customers. Its accounts range from very small
companies to groups with thousands of members across many states. The industries served cover the spectrum of commercial businesses, associations, and public sector groups. With numerous accounts of 13,000 or more employees, Anthem Life has considerable experience meeting the needs of large groups.


HOW DO I GET INTO THE ANTHEM LTD PROGRAM?
If you are not currently participating in the IPA Long-Term Disability Program, consider enrolling now. Newly hired crewmembers may take advantage of an open enrollment opportunity anytime within 90 days of their date of hire by filling out a short application and a payroll deduction authorization. More senior crewmembers may enroll at any other time by completing a short health questionnaire in addition to the application and payroll deduction authorization. All required forms are available at the IPA office, or can be obtained by calling 1-800-285-4IPA. There is open enrollment for 90 days with the start of our new partnership with Anthem. This open enrollment will end August 31, 2004.

HOW HAS OUR LTD PROGRAM PERFORMED?
As of May 31, 2004, one crewmember is receiving Long-Term Disability benefits from The Hartford Insurance Company, under the terms of IPA’s original LTD program, which covered crewmembers until December 31, 1992.

As of the same date, one crewmember is receiving Long-Term Disability benefits under the terms of the BMA program, which began January 1, 1993 and continued through November 30, 1995. This crewmember remains under the BMA program, and any benefits that may accrue will do so in accordance with the terms and conditions of the BMA program.

As of May 31, 2004, a total of 32 crewmembers are receiving Long-Term Disability benefits from AIG and U S Life (who merged with AIG in the summer of 2001). Nineteen additional crewmembers have been identified as being within the twenty-four month waiting period prior to qualifying for LTD benefits. These crewmembers will remain under the AIG program, and any benefits that may accrue will do so in accordance with the terms and conditions of the AIG program. In addition, benefits will be determined and paid under the terms and conditions of the AIG program to any and all other crewmembers that had, or will have, a disabling illness or injury prior to May 31, 2004.

As of May 31, 2004, 2,285 IPA crewmembers were participating in the IPA LTD program. If you aren’t one of them, we urge you to enroll without delay. As a UPS crewmember, you’ll find that when injury or illness strikes, you can’t afford to be without this valuable disability coverage.

 

[L'il J.Seinfeld]

Thanks to all for the great info. I can find no mention of LTD in the IPA contract, so I must assume that the LTD plan is a stand-alone group policy offered soley thru the IPA.

For you UPS folks that actually have this coverage, have you ever been provided with some type of plan documentation? In other words, what source did you reference for the details that you mentioned in the previous posts?

Cheers!

If you call the union at 1-800-285-4IPA you may be able to get a copy of the actual policy. The previous post is from the union website. The 24 month waiting period is not a big deal as long as you enroll in the mutual aid program which pays the same as LTD during the waiting period.

 

[330Driver]

Wow...great info! Thanks for taking the time to post. This sounds like a very good LTD plan.

 

[767pilot]

You can collect LTD and sell pipe fittings at Home Depot, for instance.

BBB

That is not true. You'd still collect, but they will subtract your Home Depot pay, so why bother?

 

[767pilot]

If you doubt what I just said, I just read the post with the plan details and it was mentioned there. Maximum of 10,000 a month is a player for captains too. I was going to ask if the plan reflected our new rates and it looks like it doesn't

 

[capt. megadeth]

That is not true. You'd still collect, but they will subtract your Home Depot pay, so why bother?

That did sound too good to be true.

 

[L'il J.Seinfeld]

That is not true. You'd still collect, but they will subtract your Home Depot pay, so why bother?

Argh!!! You sir, are incorrect. It pays if you are unable to hold the medical with very few exceptions (e.g. self-initiated loss of license due to psychosis.) But I will contact LT at the IPA on Monday and clarify for certain. I know the selling point that the IPA folks made to us was that you could collect 2/3 of your guarantee tax free and still earn doing whatever else you wanted.

You CAN get another job as a school teacher, lawyer, male stripper or anything else you may want and that money is in addition to your LTD. I think the 10k limit has been increased though. Again,
I will check on it and post the update. I guess that's the incentive to not "lose your medical" though.

 

[J Dawg]

Argh!!! You sir, are incorrect. It pays if you are unable to hold the medical with very few exceptions (e.g. self-initiated loss of license due to psychosis.) But I will contact LT at the IPA on Monday and clarify for certain. I know the selling point that the IPA folks made to us was that you could collect 2/3 of your guarantee tax free and still earn doing whatever else you wanted.

You CAN get another job as a school teacher, lawyer, male stripper or anything else you may want and that money is in addition to your LTD. I think the 10k limit has been increased though. Again,
I will check on it and post the update. I guess that's the incentive to not "lose your medical" though.

Well here's from your previous post:

"BENEFIT INTEGRATION APPROACH Offset for other earned income, full family Social Security and UPS/IPA Defined Benefit Pension Plan. NO offset for military pensions, military disability, NG/Reserve income, UPS/IPA 401k and Defined Contribution Pension plans, Individual or Association disability plans, personal investment income, IRAs, TSAs, and some limited personal business income etc."

Looks like other income is subtracted from the LTD payout except for military income. I'm no expert, but I guess that's what the term "offset" means???? Or maybe it's the other way - military disability is subtracted from the IPA LTD?



As far as it not being taxed, how is that even possible? Again, I'm no expert. I do however recall at the union dinner they were also selling the Pilot Mutual Aid stuff, which would add additional income about equivalent to the taxes you would pay on LTD. Maybe that's what was meant?