ALPA Supplemental Disability Plan

Many pilots carry supplemental disability coverage through ALPA in addition to the FedEx LTD Plan. Understanding how these plans interact is important for maximizing your benefits.

Two Separate Plans

FedEx LTD Plan

Employer-sponsored:

• Provided through FedEx
• Coverage defined in CBA
• Premium paid by employer
• Claims administered by third party (Aetna or Hartford)
• Subject to CBA terms

ALPA Disability Insurance

Union-sponsored:

• Optional coverage through ALPA
• Premium paid by pilot
• Various coverage levels available
• Separate claims administrator
• Subject to ALPA plan terms

Benefits of Supplemental Coverage

Why Pilots Buy Supplemental Insurance

Gaps in FedEx LTD:

1. Income replacement limit
   • FedEx LTD capped at 60%/50% of earnings
   • 401(a)(17) limit may reduce benefit for high earners
   • Supplemental insurance can fill the gap
2. Mental health duration limits
   • FedEx LTD: 60-month maximum
   • Some supplemental plans: Different or no limits
3. Taxability
   • FedEx LTD: Taxable (employer-paid premium)
   • Supplemental: Non-taxable (pilot-paid premium)
4. Own-occupation definition
   • FedEx LTD: Switches to "any occupation" after 24 months
   • Some supplemental: "Own occupation" for longer period

Typical Coverage Amounts

ALPA supplemental options vary:

• $2,000 - $10,000+ per month
• Based on pilot's income
• Subject to underwriting
• Premium based on age and coverage amount

Information Sharing (CBA Section 27.J.20)

When Both Plans Use Same Administrator

CBA provision:

If both the FedEx LTD Plan and the ALPA-sponsored disability plan are administered by the same company (currently may be Aetna), you can authorize information sharing.

Important clarification:

"Each plan shall be administered independently... there shall be no collaboration... in claims payment decisions under each plan"

What this means:

✅ Can share: Medical records and documentation ✅ Reduces: Duplicate paperwork requests ✅ Saves time: Don't need to submit same documents twice

❌ Cannot affect: Approval decisions on either plan ❌ No guarantee: Approval on one doesn't mean approval on other ❌ Independent: Each plan decides separately

How to Authorize Information Sharing

Step 1: Verify same administrator

• Check FedEx LTD administrator (Aetna or Hartford)
• Check ALPA plan administrator
• Confirm they're the same company

Step 2: Request authorization form

• Contact either administrator
• Request "Authorization to Share Information Form"
• May also be called "Inter-Plan Medical Release"

Step 3: Complete and submit

• Sign and date form
• Submit to both plans
• Keep copy for your records

Step 4: Confirm activation

• Verify with both administrators
• Understand what will be shared
• Know that decisions remain separate

Benefits of Information Sharing

For you:

• Submit medical records once
• Fewer duplicate requests
• Reduced administrative burden
• Faster processing (potentially)

For administrators:

• Access to complete medical file
• Reduced costs
• Better coordination of care

Limitations:

• Only works if same company administers both
• Must be renewed periodically
• Can be revoked at any time

Filing Claims on Both Plans

File Separately

Each plan requires:

• Separate claim application
• Own claim number
• Individual correspondence
• Separate appeals process

Timeline:

• File both claims at same time if possible
• Don't wait for one to be approved before filing other
• Processing times may differ

Information to Provide

Both will ask for:

• Personal information
• Employment information
• Medical documentation
• Attending physician statement
• Financial information

Additional questions:

• "Do you have other disability insurance?" (Answer: Yes)
• "Have you filed with other carriers?" (Answer: Yes)
• Details about the other plan

Coordination of Benefits

Neither plan reduces for the other:

• FedEx LTD doesn't offset ALPA supplemental
• ALPA supplemental doesn't offset FedEx LTD
• You can receive both simultaneously

But both may reduce for:

• Social Security Disability
• Workers' compensation
• Other disability income sources

Different Definitions and Criteria

Why One May Approve and Other Deny

Each plan has its own:

1. Definition of disability
   • Own occupation vs. any occupation
   • When the standard changes
   • What restrictions qualify
2. Medical evidence requirements
   • Types of tests needed
   • Specialist requirements
   • Documentation standards
3. Waiting periods
   • Elimination periods may differ
   • When benefits begin
4. Coverage duration
   • Maximum benefit periods
   • Condition-specific limits

Possible outcomes:

If One Approves and Other Denies

You can:

• Appeal the denial independently
• Provide additional evidence
• Use approval from one as supporting evidence for other
• But decisions remain independent

Don't assume:

• Approval on one guarantees approval on other
• Denial on one means other will deny
• Same criteria apply to both

Managing Multiple Claims

Organization is Critical

Create separate files:

Shared documents:

• Medical records (copies in both)
• Test results (copies in both)
• Doctor's statements (copies in both)

Communication Log

Track separately:

• Date and time of contact
• Which plan (FedEx or ALPA)
• Person contacted
• Topic discussed
• Follow-up needed
• Confirmation numbers

Document Submission

Best practice:

• Send documents to both plans separately
• Don't assume information sharing means automatic sharing
• Confirm receipt with both plans
• Note in your log what was sent where

Premium Payments During Disability

FedEx LTD

No premium:

• Employer-paid
• Nothing to maintain

ALPA Supplemental

Pilot-paid premium:

• Must continue premium payments
• Even while disabled
• Even while collecting benefits
• Coverage lapses if premium not paid

Waiver of premium:

• Some policies include this benefit
• Premiums waived after certain period on disability
• Check your specific policy
• Usually requires 90-180 days of disability

Important:

• Verify waiver provisions in your policy
• Submit waiver claim if applicable
• Maintain payments until waiver approved
• Don't let policy lapse

Tax Implications

FedEx LTD Benefits

Taxable income:

• Federal income tax applies
• State income tax applies (if your state has it)
• Because employer paid premium
• Reported on W-2 or 1099

ALPA Supplemental Benefits

Non-taxable (usually):

• If you paid premium with after-tax dollars
• Not reported as income
• No tax withholding
• Check your specific policy

Why this matters:

• $5,000/month taxable = ~$3,750 after tax (25% bracket)
• $5,000/month non-taxable = $5,000 in your pocket
• Supplemental provides more net income per dollar

Common Questions

Q: Should I buy ALPA supplemental coverage?

Consider if:

• You want income replacement above 60%
• You're a high earner near 401(a)(17) cap
• You want non-taxable benefits
• You want longer own-occupation coverage

May not need if:

• You have adequate savings
• You have other disability insurance
• Premium cost is prohibitive
• You're close to retirement

Q: When should I buy it?

Best time:

• Early in career when younger and healthier
• Before any medical conditions develop
• When premiums are lowest
• While you can pass underwriting

Q: Can I buy it while on disability?

Generally no:

• Must be actively working
• Must pass medical underwriting
• Pre-existing conditions excluded
• Buy before you need it

Q: How much coverage should I get?

Calculation:

Monthly income:           $15,000
FedEx LTD (60%):         $9,000
Desired replacement:      $12,000 (80%)
Gap:                      $3,000

Consider: $3,000-4,000/month supplemental

Balance:

• Coverage needed
• Premium cost
• Other resources
• Risk tolerance

Resources

ALPA Insurance

Contact:

• ALPA Member Insurance Plan: 1-800-ALPAins (1-800-257-2467)
• Website: ALPA insurance website
• Email: ALPA insurance email

Information available:

• Coverage options
• Premium quotes
• Policy documents
• Claims procedures

FedEx Benefits

Contact:

• FedEx Benefits Service Center: 1-855-545-4748
• For questions about FedEx LTD plan

Both Plans

For coordination questions:

• Contact both administrators
• Reference CBA Section 27.J.20 for information sharing
• Ask about inter-plan communication procedures

Next Steps

If you have supplemental coverage:

1. Locate your policy - Find your ALPA policy documents
2. Review coverage - Understand what you have
3. Note important dates - Elimination period, benefit period
4. Find claim forms - Know where to get them
5. File promptly - Don't delay filing either claim

If you don't have supplemental coverage:

1. Assess your risk - Calculate your income replacement need
2. Get quotes - Compare coverage options and costs
3. Review finances - Determine affordability
4. Consider timing - Buy while healthy if you're going to buy
5. Make informed decision - Weigh costs and benefits