When LTD Begins

The 180-Day Elimination Period

LTD has a 180-day elimination period before payments begin:

Day 1-180:   Elimination period (no LTD payments) — sick banks and SDI cover this period
Day 181:     LTD benefits can begin (if approved and CBA eligibility met)

You must be continuously disabled for 180 days. Your sick banks and CA SDI cover this window.

LTD vs. SDI Timing

Once LTD begins, the offset applies — LTD reduces its payment by the CA SDI amount you are receiving (or expected to receive). See the offset problem.

Qualifying for LTD

Own Occupation Period (Months 1-24)

For the first 24 months of LTD benefits, disabled means unable to perform your own occupation as a pilot — i.e., you cannot hold a first-class medical and fly the line.

Any Occupation Period (Month 25+)

After 24 months, disabled means unable to perform any occupation for which you are reasonably qualified by education, training, or experience.

Applying for LTD

When to Apply

Apply around day 90-120 — do not wait until day 180. Processing takes 2-4 weeks, and late filing delays your first payment past day 181.

How to Apply

1. Confirm the current administrator — call FedEx Benefits Service Center (1-855-545-4748); may be Aetna or Hartford
2. Request claim forms — the employer statement is completed by FedEx payroll, not you
3. Complete the employee statement
4. Have your treating physician complete the attending physician statement
5. Have FedEx complete the employer section
6. Submit and follow up in writing

Benefit Amount

Hartford LTD pays:

• 60% of pre-disability earnings (months 1-24); 50% thereafter
• Capped at the IRS 401(a)(17) limit ($350,000 for 2026)
• Reduced by CA SDI, SSDI, and other offset income

Maximum monthly benefit (before offsets):

$350,000 × 60% ÷ 12 = $17,500/month

Taxability

Hartford premiums are employer-paid, so LTD benefits are taxable income subject to federal (and California state) income tax.

Financial Timeline

Months 1-6:  Sick banks + SDI (180-day elimination period)
Month 7+:    LTD begins; CA SDI offset applied; first payment ~2-4 weeks after approval
Month 13+:   SDI exhausts at 52 weeks; full LTD amount paid (no SDI offset)
Month 25+:   LTD rate drops from 60% to 50%

Cash flow gap: Ensure you can cover the first 180 days. The first LTD payment will arrive 2-4 weeks after approval, not on day 181 itself.

Common LTD Issues

Claim Denied

If the administrator denies your LTD claim:

• Review the denial reason carefully — the specific language determines your appeal grounds
• You have 180 days from the denial date to file an internal appeal
• File the appeal in writing; request a copy of your complete claim file under ERISA

Offset Disputes

If you disagree with the administrator's offset calculation:

• Request the detailed calculation in writing, including the SDI/SSDI amounts used
• Compare to your EDD approval letter and actual payment records
• Review comprehensive offset rules
• Use the PBRB process if the administrator does not correct the calculation

Next Steps

• How Offset Is Calculated — Understanding the math
• Calculator — Calculate your expected benefits
• Hartford Contact — Hartford phone and details