Is the monthly ALPA National Disability benefit taxable? How about the lump-sum Disability benefit?
It's always best to check with a tax advisor, but generally a company-paid plan may produce a taxable benefit, and generally a plan that you pay for yourself pays a non-taxable benefit. Where the company pays for some of the coverage, a pro-rated share of benefits may be taxable.
Can I collect benefits under the ALPA plans at the same time?
You can. Be aware that the claims procedures are separate for the two plans, and that receipt of one does not guarantee receipt of the other.
Can I work in another capacity and collect my monthly ALPA National Disability benefits?
You may return to work, after a claim has been approved, in a lesser capacity. If this is your situation, you may be eligible for a benefit which represents the difference between your salary prior to disability and after your return. (In no event will this exceed the amount of your benefit.) If you work in a non-flying capacity, and remain unable to regain your license by reason of disability, you may still be eligible to receive benefits.
Does the ALPA National Disability plan cover me if I have an FAA violation?
The ALPA National Disability plan covers qualifying illnesses or injuries which result in the loss of your license. Loss of license for any other reason is not a qualifying event.
How much loss of disability coverage do you recommend that a pilot carry?
As much as possible. The ALPA plans do not include an offset for other coverage, and you should ideally replace 60-70% of your salary.
When can I start drawing benefits from the ALPA monthly and lump-sum benefit plans?
There is a one-year waiting period from the date of disability for each, and a claim determination is based on your status at the end of the one-year wait.
If I get sick again, do I have to wait another year to draw monthly ALPA National Disability benefits?
It depends. If you return to work before exhausting your benefits, and you become disabled again after a return of less than six months with the same or related disability, you will not need to satisfy another twelve-month waiting period. If you do exhaust your benefits and later return to flying, you will need to reapply for coverage under either plan.