ALPA Supplemental Disability Plan

Many pilots carry supplemental disability coverage through ALPA on top of the FedEx LTD Plan. These are two separate policies with different eligibility rules, benefit amounts, and claims processes. A few points about how they interact are worth understanding.

It stacks — it doesn't offset

This is the key difference from CA SDI. CA SDI reduces (offsets) your FedEx LTD benefit dollar-for-dollar. ALPA supplemental does not — it pays on top of FedEx LTD, and FedEx LTD does not reduce for it either.

Note that ALPA supplemental, like FedEx LTD, may still reduce for Social Security Disability, workers' compensation, and other disability income sources — check your policy.

The tax treatment is different

• FedEx LTD is taxable, because FedEx pays the premium.
• ALPA supplemental is generally non-taxable, because you pay the premium with after-tax dollars.

So a dollar of ALPA supplemental is worth more in your pocket than a dollar of FedEx LTD. A $5,000/month FedEx LTD benefit nets roughly $3,750 after tax in a 25% bracket; $5,000 of non-taxable supplemental nets the full $5,000.

Information sharing (CBA Section 27.J.20)

If both plans happen to use the same claims administrator, you can authorize them to share medical records so you don't submit the same documentation twice. But the CBA is explicit that the plans are still decided independently:

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

So sharing records saves paperwork, but approval on one plan is never a guarantee of approval on the other. File each claim separately, with its own application and its own appeals process.

Keep paying the premium

FedEx LTD is employer-paid, so there's nothing to maintain. ALPA supplemental is pilot-paid, and the coverage lapses if you stop paying — even while you're disabled and collecting benefits.

Some policies waive the premium after a set period on disability (often 90–180 days), but you generally have to file for the waiver and keep paying until it's approved. Don't let the policy lapse waiting on it.