When LTD Benefits Begin

Understanding when you become eligible for Long-Term Disability (LTD) benefits is critical for financial planning. Unlike many LTD plans that simply use a time-based elimination period, the FedEx LTD Plan has specific triggering events.

LTD Eligibility Triggers (CBA Section 27.J.1)

According to the Collective Bargaining Agreement, LTD eligibility is triggered by ONE of these events:

1. Exhaustion of Sick Banks

Most common trigger: You become eligible when you exhaust both:

• Regular sick account
• Disability sick account (DSA)

How to check:

• Log into Workday
• View your sick bank balances
• Calculate your burn rate based on current disability

Example:

Regular sick: 120 hours (15 days)
DSA balance:  480 hours (60 days)
Total:        600 hours (75 days)

If using 8 hours per day → LTD eligible after 75 days

2. Disability-Related Seat Change

You become eligible if you bid down to a lower seat because of disability:

Examples:

• Captain → First Officer due to medical restrictions
• Wide-body → Narrow-body due to inability to handle longer flights
• International → Domestic due to medical limitations

Documentation needed:

• Medical documentation showing restrictions
• Proof that restrictions prevent you from holding current seat
• Bid award showing the seat change

3. Move to Non-Pilot Position

You become eligible if you move to a ground position because of disability:

Examples:

• Pilot → Flight operations coordinator
• Pilot → Training department
• Pilot → Safety department

Important Distinctions

NOT a Simple Time-Based Trigger

Common misconception: "LTD begins after 180 days"

Reality: The 180-day elimination period is NOT the sole trigger. You must meet one of the three eligibility criteria above.

Timing Can Vary Widely

CA SDI Filing Is Independent

CA SDI has:

• 7-day waiting period
• 49-day filing deadline
• 52-week maximum duration

LTD eligibility may not occur until months into your disability.

Calculating Your LTD Eligibility Date

Step 1: Check Your Sick Banks

1. Log into Workday
2. Navigate to Benefits → Time Off
3. Note balances for:
   • Regular sick time
   • DSA (Disability Sick Absence)

Step 2: Calculate Burn Rate

Full-time disability: 8 hours per scheduled workday

Partial disability: Varies based on hours worked

Example calculation:

Regular sick: 200 hours ÷ 8 hours/day = 25 days
DSA:          400 hours ÷ 8 hours/day = 50 days
Total:        600 hours ÷ 8 hours/day = 75 days

Expected LTD start: 75 days after disability begins

Step 3: Plan for Gaps

Between sick exhaustion and first LTD payment:

• Processing time: 2-4 weeks typical
• First payment: Usually 2-4 weeks after approval

Financial bridge:

• Ensure adequate savings
• CA SDI may help bridge the gap
• Consider emergency funds

Interaction with CA SDI

Timeline Example

Day 1:       Disability begins
Day 1-7:     CA SDI waiting period
Day 8:       CA SDI payments can begin (if approved)
Day 75:      Sick banks exhausted → LTD eligible
Day 90:      LTD claim approved
Day 104:     First LTD payment received

Key Points

1. File CA SDI immediately - Don't wait for sick banks to exhaust
2. CA SDI continues - Even after LTD begins (up to 52 weeks total)
3. Offset applies - LTD will offset CA SDI payments
4. Different systems - EDD and LTD administrator operate independently

Special Situations

Seat Change Mid-Disability

If you're on disability and then bid to a lower seat:

1. Becomes LTD eligibility trigger immediately
2. Even if you still have sick banks
3. Must be disability-related, not preference

Example:

Day 1:   Captain becomes disabled
Day 30:  Still on sick banks
Day 60:  Bids to First Officer due to medical restrictions
Day 60:  Now LTD eligible (despite remaining sick time)

Return to Work Attempts

If you return to work but then go back on disability:

• New eligibility evaluation may be required
• Sick banks may have partially replenished
• Consult with benefits administrator

Part-Time Disability

If working reduced schedule:

• Sick banks burn slower
• LTD eligibility delayed
• May still qualify for partial CA SDI

Documentation to Maintain

Keep records of:

• Sick bank statements - Monthly screenshots from Workday
• Medical documentation - All restrictions and limitations
• Bid records - If seat changes occur
• Communication logs - All contacts with benefits administrators

Next Steps

Once you determine your LTD eligibility date:

1. File LTD claim 30-60 days before eligibility date
2. Verify administrator - Hartford (see Contacts)
3. Understand calculations - Review benefit calculations
4. Learn about offsets - Study offset rules

Resources

• FedEx Benefits Service Center: 1-855-545-4748
• ALPA R&I Committee: For CBA interpretation questions
• CBA Section 27.J.1: Full text of eligibility language
• Workday: Check sick bank balances