How FedEx LTD Works

FedEx provides Long-Term Disability (LTD) insurance to pilots under CBA Section 27.J. It replaces a portion of your income when you can no longer work as a pilot for an extended period.

The Basics

Coverage Levels (CBA Section 27.J.2)

How Benefits Are Calculated (CBA Section 27.J.6)

Your benefit is based on:

"The 12 highest consecutive months out of the 36 consecutive months preceding the disability period"

Calculation steps:

1. Identify your highest 12 consecutive months of earnings within the 36 months before disability
2. Cap the total at the IRS 401(a)(17) limit ($350,000 for 2026)
3. Divide by 12 to get monthly earnings
4. Multiply by 60% (months 1-24) or 50% (months 25+)

Example:

• Highest 12-month period: $380,000 → capped at $350,000
• Monthly earnings: $350,000 ÷ 12 = $29,167
• Months 1-24 benefit: $29,167 × 60% = $17,500/month
• Months 25+ benefit: $29,167 × 50% = $14,583/month

See Benefit Calculation Guide for complete details.

Definition of Disability

Own Occupation (First 24 Months)

For the first 24 months, you are disabled if you cannot perform the material duties of your own occupation as a pilot — i.e., you cannot hold a first-class medical and fly the line.

Any Occupation (After 24 Months)

After 24 months, you are disabled only if you cannot perform any occupation for which you are reasonably qualified by education, training, or experience.

When Does LTD Begin? (CBA Section 27.J.1)

LTD does not begin simply after 180 days. Eligibility is triggered by one of three events:

1. Exhaustion of sick banks — both regular sick AND DSA depleted
2. Disability-related seat change — bidding down due to medical restrictions
3. Move to a non-pilot position — transitioning to a ground role due to disability

See LTD Eligibility for complete details.

Offsets (CBA Sections 27.J.13, 27.J.15)

Offset Rules by Type

See Comprehensive Offset Guide for examples.

The California Problem

For California-based pilots, the administrator offsets your LTD by the SDI amount you are expected to receive — even if you haven't filed yet, are waiting for approval, or have been approved but not paid. This is the core funding gap this guide addresses.

Cooperation Requirements (CBA Section 27.J.4)

To keep LTD benefits, you must:

• Fully cooperate with the claims administrator
• Coordinate with the ALPA Aeromedical Advisor
• Diligently seek restoration of your FAA medical certificate
• Respond to information requests within the deadlines stated
• Attend any required independent medical examinations (IMEs)

See Cooperation Requirements for the full scope.

Duration Limits (CBA Sections 27.J.10, 27.J.11)

See Duration Limits for complete details.

The Claims Process

Filing a Claim

1. Confirm the current administrator (Aetna or Hartford) with the Benefits Service Center
2. Request claim forms — the employer statement comes from FedEx payroll, not from you
3. Complete the employee statement; have your treating physician complete the attending physician statement
4. Submit with supporting medical records and earnings history

What the Administrator Needs

• Medical records — request these from your provider early; missing records are the most common cause of delay
• Earnings history — pulled from FedEx payroll; verify the 12-month window they use matches CBA §27.J.6 (highest 12 of preceding 36), not just the last 12
• Other-benefit disclosure — SSDI, CA SDI, workers' comp, VA, outside income. Undisclosed sources discovered later trigger overpayment recoupment.

Communication

• Get your claims examiner's name, direct line, and email at first contact
• Follow up every phone call with a written summary email ("Per our call today, you confirmed…") — this is your record if the file later disputes what was said
• If the examiner changes, request a written handoff confirming the current status of your claim

Appeal Rights

If the administrator denies your claim or you disagree with the calculation:

1. Internal Appeal — file within the timeframe stated in your denial letter
2. PBRB Review — request review through ALPA's Pilot Benefit Review Board
3. Legal Action — ERISA provides the right to sue in federal court after administrative remedies are exhausted

Company System Access (CBA Section 27.J.19)

While on disability, you retain access to:

• pilot.fedex.com
• PRISM
• Company email (@fedex.com)

This is a contractual right. If access is lost, contact IT and reference CBA Section 27.J.19.

See Company System Access for details.

Next Steps

• LTD Eligibility — when LTD actually begins
• Benefit Calculation — detailed calculation method
• Offset Rules — complete offset information
• The Offset Problem — why CA pilots face unique challenges
• Calculator — estimate your LTD and offset amounts