Fedex Pilots Post-Medicare Retiree

“The administrative board will consist of three (3) regular and two (2) alternate members. Two regular members and one alternate member will be pilots who retired from the company, and one regular member and one alternate member will be active pilots in the service of the company. Each regular member has one vote. The alternate member who is a retired pilot may vote in the absence of any regular member who is a retired pilot, and the alternate member who is an active pilot may vote in the absence of the regular member who is an active pilot.”

“As the association is the plan sponsor, the president of the association signs any plan documents and any changes to the plan document.”

“As the association is the plan sponsor,the president of the association signs any plan documents and any changes to the plan document.”

“The organization does not currently have committees with authority to act on behalf of the governing body.”

“The final draft of the organization's form 990 is sent to the veba board members, kevin burton, and alpa management. Each person reviews the draft form 990 and is requested to provide any feedback to dan white, who in turn reports any comments back to the independent certified public accountant firm engaged by the plan to prepare the form 990. The comments are incorporated into the final version of the form 990 which is filed with the internal revenue service.”

“Fedex pilots post-medicare retiree premium reimbursment plan follows the conflict of interest policy of its related organization air line pilots association, international ("alpa") seen below. (1) alpa's conflict of interest policy is reviewed with employees, a written copy is included in each employee new hire kit, included in the employee handbook and the policy is posted on the employee staff center website. The policy provides examples of some of the relationships that should be avoided. The policy requires that all employees avoid conflicts between their personal interest and the members of, or persons represented by, alpa or the interest of alpa in dealing with employers or with suppliers, customers, and all other organizations or individuals seeking to do business with alpa. If a conflict is reported, discovered, or suspected, it is addressed first by the employee's supervisor and, if necessary, by the human resources department, and in either case, appropriate measures are taken, which can include termination for violation of the policy. (2) in accordance with federal labor laws, alpa is governed by officers elected from among the membership. Accordingly, decisions made by alpa's governing bodies necessarily affect the officers who make up those governing bodies, just as those decisions affect the union members as a whole. However, section 501(a) of the labor-management reporting and disclosure act (lmrda), 29 u.s.c. S501(a), states that officers and other union representatives "occupy positions of trust" with respect to the union and so that "it is, therefore, the duty of each such person, taking into account the special problems and functions of a labor organization, to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the same in accordance with its constitution and bylaws and any resolutions of the governing bodies adopted thereunder, to refrain from dealing with such organization as an adverse party or in behalf of an adverse party in any matter connected with his duties and from holding or acquiring any pecuniary or personal interest which conflicts with the interest of such organization, and to account to the organization for any profit received by him in whatever capacity in connection with transactions conducted by him or under his direction on behalf of the organization." the responsibilities imposed by lmrda section 501(a) may be enforced by union members through suits in federal courts, or by the secretary of labor, and those responsibilities govern the union's actions. (3) in accordance with the alpa administrative manual, section 55, part 1.l contains a conflict of interest provision that states that the veba board and alpa staff "will at all times maintain arm's length relationships with plans and plan service providers".”

“The administrative board of the organization has set the reasonable compensation rate which is articulated in the organization's veba administrative board administrative manual: 1. Retired members serving on the board will be compensated 6 hours per day at the widebody captain rate, plus a 7.65% override to offset the employer's social security match. Travel days will be compensated at 1/2 (one half) of a full day rate. Partial days will be prorated. 2. An administrative board member who is an active pilot will be compensated via flight pay loss, and the plan will reimburse the association for the flight pay loss reasonably attributable to the pilot's attendance at the meeting. 3. All veba administrative board compensation will be approved before payment by the veba administrative board chairman or his designee. In no case will a board member approve his own compensation. The organization does not compensate its officers directly.”

“The plan document dictates that the board members who are active pilots will receive flight pay loss if dropping a trip is required. Retired pilots who are board members receive captain rate for 6 hours of the meeting and for up to 3 each day traveling to and from a meeting.”

“The organization makes its governing documents and financial statements available to the public to the extent required by law.”

“Pursuant to the collective bargaining agreement between fedex corporation and the air line pilots association, international, the mission of the fedex pilots post-medicare retiree premium reimbursement plan is to provide eligible retired pilots and their spouses with a reimbursement of premiums paid to medicare part b, medicare part d, and/or a medicare supplement policy. The premium reimbursement rate is determined annually by the board in accordance with the plan document.”

“($1,743,508) net investment loss from limited partnership schedule k-1 included for return purposes not included on books as a reduction in reconciling net assets.”

“The plan's financial statement has been prepared on the modified cash basis of accounting, a basis of accounting other than accounting principles generally accepted in the united states of america. Consequently, revenue and the related assets are recognized when received rather than when earned, other interest, which is recognized when earned, dividends, which are recorded on the ex-dividend date and changes in fair value, which are recognized in the period they occur. Expenses and their related liabilities are recognized when paid rather than when the obligation is incurred. The financial statements are not intended to present the plan's net assets available for benefits and the changes in its net assets available for benefits in accordance with u.s. Gaap.”