your ground crew FedEx MEC Insurance Products Exclusively for FedEx ALPA Members Available Insurance Plans

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1 take care of your ground crew FedEx MEC Insurance Products Exclusively for FedEx ALPA Members Available Insurance Plans ALPA FedEx MEC Insurance Group Term Life Long Term Disability

2 FedEx MEC Insurance Plans: Designed by FedEx Pilots, for FedEx Pilots Dear FedEx ALPA Member: We are pleased to present the FedEx MEC Group Term Life Insurance Plan and FedEx MEC Long Term Disability (LTD) Plan! These plans were built by FedEx pilots for FedEx pilots. By participating in these plans, you can help protect yourself, and those who depend on you, against the financial harm that can result from unanticipated loss of life or disability. The pilot-designed FedEx MEC Life Insurance Plan avoids many of the aviation-related exclusions found in other life insurance policies. Premiums charged for FedEx MEC Life Insurance are lower than premiums charged for the optional life insurance offered by FedEx under our collective bargaining agreement (CBA). We recommend you review your coverage to see if the FedEx MEC Life Insurance would be a good option to supplement or replace other coverage. The pilot-designed FedEx MEC LTD Plan provides monthly benefits for disabilities that prevent you from working in your own occupation as a pilot. As a supplement to the LTD plan provided by FedEx under our CBA, the FedEx MEC LTD Plan pays LTD benefits in addition to any LTD benefits paid under the CBA. However, unlike the LTD plan under the CBA, benefits paid by the FedEx MEC LTD Plan are not subject to federal income tax (state tax rules vary). Please read through the plan outlines that follow. Log on to click to access FDX MEC R&I Committee page, click LTD and Life button to view the application materials. Thank you very much for your interest. We look forward to continuing to help you take care of your ground crew. In unity, FedEx MEC Retirement & Insurance Committee 2

3 FedEx MEC Life Insurance Life Insurance Plans Exclusively for FedEx ALPA Members Eligibility Who Can Apply? You are an Eligible Member and may apply for coverage if you are: Actively at work as a pilot for Federal Express, and An ALPA member in good standing. If you are an Eligible Member, you may also apply for coverage for these Eligible Dependents: Your lawful spouse of any age, if you also have coverage for yourself. Your lawful spouse under age 60, if you do not have coverage for yourself. Unmarried dependent children from birth until their 21st birthday (25th birthday if a full-time student), or for a longer period of time in the case of a physically or mentally handicapped child (if you provide timely proof of handicapped status) as provided in the policy. If your spouse and/or dependent child(ren) are also eligible FedEx pilots, they cannot be covered as dependents. If both parents are FedEx pilots, only one parent may apply for insurance for any eligible child(ren). Guaranteed Issue Coverage for FedEx MEC Group Term Life No Medical Underwriting Required New Hire Pilots If you apply for coverage within 120 days of your hire date, you will not need to answer any medical questions (i.e., guaranteed issue) for coverage at the following levels: Up to $300,000 for eligible members. Up to $75,000 for eligible spouses. $10,000 for eligible child(ren). 3

4 FedEx MEC Insurance Plans: Designed by FedEx Pilots, for FedEx Pilots If you do not apply for this coverage within 120 days of your hire date, you will need to furnish medical evidence of insurability satisfactory to the insurer before your coverage will become effective. Non-New Hire Pilots If you are not a new hire pilot, you will need to furnish medical evidence of insurability before your coverage will become effective. However, you (but not your spouse or child[ren]) can still qualify for guaranteed issue up to $300,000 (including your existing coverage) if you apply within six months of the following major life events: 4 Marriage, divorce, legal separation, or annulment. Birth, adoption, placement for adoption, or appointment of legal guardianship of a child. Death of a dependent. Coverage Amounts Eligible members can apply for $10,000 to $1,500,000, in $1,000 increments, not to exceed 10 times your basic yearly earnings. If the member has coverage, the spouse may apply for up to the same level as the member s coverage. If the member has no coverage, spouse-only coverage is limited to $750,000. Applications for coverage above guaranteed issue level will result in issuance of coverage at the guaranteed issue level and amounts above will require medical evidence of insurability. FedEx MEC Group Term Life: Premiums for Member, Spouse, and Child(ren) Member and Spouse Coverage The initial cost of insurance for you and your spouse is based upon the amount of insurance requested and your attained age when the insurance becomes effective. The cost increases as you grow older.

5 FedEx MEC Life Insurance Age Monthly Premium for Member or Spouse (per $1,000) $ $ $ $ $ $ $ $ $ $ $ $2.029 Rates shown are guaranteed until 11/01/2017 Child(ren) Coverage Cost is a flat $1.91 monthly. Cost remains the same no matter how many eligible children are covered. Coverage for each child is $1,000 from birth to 6 months, $10,000 thereafter. Exclusions and Limitations If the member is covered, or if both the member and spouse are covered, coverage reduces to 50% on the first day of the month on or after attaining age 70. Coverage terminates the last day of the month during which you were last actively at work by Federal Express. See page 6 for options after you terminate from FedEx. If the member has no coverage, spouse-only coverage ends on the first day of the month on or after the spouse attains age 65. Suicide is not covered during the first 24 months of original coverage or of an increase in coverage. Accelerated Death Benefit If life expectancy is less than 12 months, as certified by a doctor, an accelerated death benefit is payable equal to 50% of the coverage amount. 5

6 FedEx MEC Insurance Plans: Designed by FedEx Pilots, for FedEx Pilots No accelerated death benefit is payable after attaining age 70. Continuation of Coverage If you are no longer eligible for Life Insurance because you stop active work, the Policyholder may continue your insurance. Premiums must be paid. Your continuation of insurance is subject to all other terms of the Group Policy. The length of time your insurance continues depends on the reason you stop active work. Your continution of insurance stops on the earliest of the following dates: 6 The end of the period for which your premiums were paid, if the next premium contribution is not paid on time. The date the Group Policy stops. The date your leave of absence ends. The date your layoff, furlough, strike, or lockout ends. If you return to active work, your Life Insurance coverage as an active employee resumes without interruption. Coverage continues if premiums are paid during Military Leave. Benefits Upon Retirement,Termination, or End of Continuation Period If you apply within 60 days of your retirement, termination, or the end of your continuation period, you can continue portability coverage not to exceed the lesser of five times your basic yearly earnings or $750,000. With proof of good health, your portability rates will remain the same. If you do not qualify for portability coverage, you may apply for conversion coverage. Portability coverage is not available for spouse-

7 FedEx MEC Life Insurance only coverage. You may apply for conversion coverage within 60 days of the date spouse-only coverage ends. Other Features Voya Travel Assistance Service You will be covered under the Voya Travel Assistance program at no cost to you. When traveling more than 100 miles from home, Voya Travel Assistance offers you and your dependents four types of services: Pre-Trip Information, Emergency Personal Services, Medical Assistance Services, and Emergency Transportation Services. Voya Travel Assistance Services are provided by Europ Assistance USA, Bethesda, Maryland This service is not available in all states. Funeral Planning & Concierge Service Funeral Planning and Concierge Service offers members a unique opportunity to discuss and obtain information from independent experts regarding the planning of a funeral. With this service, members have the ability to contact professionals who will aid them with funeral planning for themselves and eligible family members. Funeral Planning and Concierge Services are provided by Everest Funeral Package, LLC, Houston, TX This service is not available in all states. 7

8 FedEx MEC Insurance Plans: Designed by FedEx Pilots, for FedEx Pilots Long Term Disability Insurance Exclusively for FedEx ALPA Members Eligibility Who Can Apply? You are an Eligible Member and may apply for coverage if you are: 8 A full-time active employee of Federal Express who is on the Federal Express Pilots Master Seniority List, An ALPA member in good standing, and A citizen or legal resident of the U.S. or Canada. LTD Benefit Amount The LTD insurance benefit is a flat 17% of your pre-disability income (PDI) as a pilot with FedEx. The maximum monthly benefit under this plan is $14,500. Benefits under this plan, when added to benefits you receive under the Federal Express Long Term Disability Plan for Pilots, certain other income and recovery work earnings, if any, during your disability may not exceed 100% of your PDI. Guaranteed Issue Coverage for New Hires No Medical Underwriting Required If you apply for coverage by the 60th day after you complete six months of service, you will not need to answer any medical questions (i.e., guaranteed issue). You must be actively at work on the coverage effective date (which can be no earlier than the date you complete six months of service). If you do not apply by this date, you will need to furnish medical evidence of insurability before your coverage will become effective. When Benefits Begin and End You are considered disabled and eligible for LTD benefits if you have a change in your functional capacity to work as a pilot for FedEx, as a result of a medical condition that prevents you

9 FedEx MEC LTD Insurance from performing the essential functions of your occupation, and as a result you are unable to earn more than 80% of your PDI. For this purpose, a medical condition is an accidental injury, sickness, mental illness, substance abuse, or pregnancy. Your eligibility for LTD benefits must be established by medical evidence. You will not be considered disabled solely because of the loss or restriction of your medical certificate. Once your claim is approved, you will be eligible to receive LTD benefits if you remain disabled after your Benefit Qualifying Period ends. Your Benefit Qualifying Period is either 12 months or 24 months, depending on which option you elected. Generally, your LTD benefits will continue until recovery or age 65, whichever is sooner. FedEx MEC LTD Insurance: Premiums FedEx MEC LTD Monthly Premiums* Plan Option Rate per $100 of Monthly PDI Option 1: 12 Months Benefit Qualifying Period Option 2: 24 Months Benefit Qualifying Period $1.585 $0.932 *A monthly administration fee of $6.42 will be applied on both plans. Example: If your monthly PDI is $10,000, your monthly premium would be: $ plus $6.42 monthly admin fee for Option 1: 12 Months Benefit Qualifying Period, or $93.20 plus $6.42 monthly admin fee for Option 2: 24 Months Benefit Qualifying Period. Your premiums are waived after you have been disabled for six months. 9

10 FedEx MEC Insurance Plans: Designed by FedEx Pilots, for FedEx Pilots Exclusions and Limitations No LTD benefits will be paid if your disability results from: 10 Intentionally self-inflicted injury or illness. Felony or illegal occupation/activity. Drugs or controlled substances. Service in the armed forces, military reserves or National Guard of any country or International authority, while at war, declared or undeclared, or any act or hazard of war, or in a civilian unit serving with such forces, unless you are on temporary assignment in a war area on FedEx business. Cosmetic or reconstructive surgery (except for complications arising from such surgery, and surgery to correct a deformity caused by accidental injury or sickness). Test flying (except that a disability resulting from test flying in the course of employment with FedEx or flying general aviation experimental aircraft is covered). Any period of disability that began before your coverage effective date. No LTD benefit will be paid for any period of disability during which you are not under the regular and appropriate care of a physician. You can receive LTD benefits up to a lifetime maximum of 36 months, for mental illness or substance abuse. This time period may be extended if you are confined to a hospital. No LTD benefits will be paid for a period of disability due to a preexisting condition unless the period of disability begins more than 365 consecutive days after your coverage effective date. A preexisting condition is an accidental injury, sickness, mental illness, substance abuse, or pregnancy for which you received medical treatment, care, consultation, or services, or for which you took

11 FedEx MEC LTD Insurance or were prescribed medications, in the 90-day period prior to your coverage effective date. Recurring Disabilities After starting to receive LTD benefits, if you make a recovery that turns out to be only temporary, you will not be required to satisfy a new Benefit Qualifying Period if: You become disabled again due to the same or a related condition, and Your return to work is for less than six consecutive months. Survivor Benefit If you die while you are receiving LTD benefits under this plan, your eligible survivor will be paid a lump sum equal to three times your final monthly benefit. Cost of Living Adjustment (COLA) Benefit A 3% cost of living adjustment (COLA) benefit will be payable if you are receiving benefits on the January 1 coincident with or next following the date you have been disabled for 12 consecutive months following your Benefit Qualifying Period. You will be eligible for additional COLA benefits on each subsequent January 1 if you have been continuously receiving benefits under this plan. You may receive a maximum of five cost of living adjustments. Your benefit after cost of living adjustments is not subject to the maximum monthly benefit. 11

12 ALPA FedEx MEC Insurance Plans Administered by: Air Line Pilots Association, Int l 535 Herndon Parkway Herndon, VA Insurance@alpa.org Life Underwritten by: ReliaStar Life Insurance Company, a member of the Voya Family of Companies, Policy form LP00GP. 20 Washington Ave. S. Minneapolis, MN LTD Underwritten by: Aetna 1600 SW 80th Trace Plantation, FL This brochure contains only a brief description of the principal provisions under the plans. The complete terms and conditions are set forth in the group policies issued to Air Line Pilots Association, International and approved by the FDX Master Executive Council by ReliaStar Life Insurance Company, a member of the Voya Family of Companies, and Aetna. Please contact ALPA for more information. Rev