2017-10-13T12:17:56-05:00 2016-12-31 Grant Thornton LLP 1000 WILSON BLVD SUITE 1400 ARLINGTON VA 22209 990 2016-01-01 651297729 FEDEX PILOTS POST-MEDICARE RETIREE PREMIUM REIMBURSEMENT PLAN % STEVEN HODGSON FEDE 7036894132 535 HERNDON PARKWAY HERNDON VA 20170 STEVEN HODGSON manager, alpa r&i 7036894132 2017-10-13 true Mary Torretta P00847851 7038477500 38.69.39.117 54681420172865000022 2017-10-13 P AA918D8483008E32154F6CC583B06457B9AF9E42 AA918D8483008E32154F6CC583B06457B9AF9E42 2016 2021-01-29 14:40:06Z STEVEN HODGSON 535 HERNDON PARKWAY HERNDON VA 20170 7011916 false X N/A X 2007 VA PROVIDE ELIGIBLE RETIRED PILOTS AND THEIR SPOUSES WITH A REIMBURSEMENT SPOUSES WITH A REIMBURSEMENT OF PREMIUMS PAID TO CERTAIN MEDICARE PLANS. 3 3 0 0 0 0 0 2442526 4628520 2090773 2383396 0 0 4533299 7011916 0 0 1103459 1773826 25922 14812 0 0 0 365198 382405 1494579 2171043 3038720 4840873 90045944 96999500 2244589 156577 87801355 96842923 X SEE SCHEDULE O. false false Provide a premium reimbursement of up to $1,368 per participant for the 1/1/2016 plan year for eligible retired pilots and/or their spouses who are age 65 or over and who purchase Medicare Part B, Medicare Part D, and/or a Medicare Supplement Policy. There were approximately 1,510 participants at the end of the 1/1/2016 plan year receiving benefits. false false false false false false false false false false false false false true true true false false false false false false false false false false false false true false false false false false false false false false false false true false false true 4 0 true 0 false false false false false false X 3 3 false false true false false true true true false false false true true false true true true false false false X STEVEN HODGSON 7036894114 535 HERNDON PARKWAY HERNDON VA 20170 X MIKE BROOME VEBA BOARD MEMBER 5.0 0.0 X 7406 0 2736 Aaron Grady VEBA BOARD ALTERNATE MBR 5.0 0.0 X 0 0 0 AL SMITH VEBA BOARD MEMBER 5.0 0.0 X 7406 0 2736 Ken Binder VEBA Board Chairman 5.0 5.0 X 0 8238 0 THE NORTHERN TRUST COMPANY TRUSTEE 1.0 1.0 X 163607 0 0 Timothy Canoll PRESIDENT/ALPA 1.0 40.0 X 0 1109273 67400 STEVEN HODGSON MANAGER, ALPA R&I DEPT 5.0 40.0 X 0 271163 58382 178419 1388674 131254 1 false true false THE NORTHERN TRUST COMPANY 800 CONNECTICUT AVE NW 200 WASHINGTON DC 20006 INVESTMENT 163607 1 0 EMPLOYER CONTRIBUTIONS 900099 4628520 4628520 4628520 2383396 2383396 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7011916 4628520 2383396 0 0 0 1773826 14812 0 0 0 0 0 0 0 39972 0 0 163607 0 0 0 0 0 0 0 0 0 0 0 0 5751 VEBA ACTUARY/CONSULTING FEES 70977 BOARD MEMBER EXPENSES 4389 ADMINISTRATIVE EXPENSES 97709 2171043 0 0 0 0 0 0 1849603 157049 0 0 0 0 0 0 0 0 0 0 0 0 88196341 96842451 0 0 0 0 0 0 0 0 90045944 96999500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2244589 156577 2244589 156577 X 87801355 96842923 0 0 0 0 87801355 96842923 90045944 96999500 4840873 4200695 X X false true X true false 0 PENDING TRADE PURCHASES 156577 156577 X 11212611 4200695 4200695 7011916 7011916 2171043 2171043 2171043 Liability for Uncertain Tax Positions (ASC 740) Schedule D, Part X, Line 2 The Air Line Pilots Association Fed Ex Pilots Post-Medicare Retiree Health Plan Trust qualifies under Section 501(c)(9) of the IRC as a VEBA. The VEBA has received an extemption letter from the Internal Revenue Service (IRS) on August 22, 2008. Accordingly, no provision for income taxes is needed. The Plan and the VEBA Trust are required to operate in conformity with the IRC in order to maintain the VEBA's tax-exempt status. The Plan administrator is not aware of any course of action or series of events that has occurred that might adversely affect the VEBA's tax-exempt status. The Plan has been amended since the most recent exemption letter was issued; however, the Plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC. Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2016 and 2015, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. false true false Timothy Canoll PRESIDENT/ALPA 0 477659 0 26400 0 605214 0 26500 0 40900 0 1176673 0 0 STEVEN HODGSON MANAGER, ALPA R&I DEPT 0 249887 0 16987 0 4289 0 26500 0 31882 0 329545 0 0 SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN Schedule J, Part I, Line 4B Additional taxable compensation related to a 457(F) nonqualified deferred compensation plan was reported on Schedule J, Part II, Column (B)(III) as noted below: Timothy Canoll - $365,979 ORGANIZATION'S MISSION FORM 990, PART III, LINE 1 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. GOVERNING BODY FORM 990, PART VI, SECTION A, LINES 1A AND 1B There are 3 regular Board Members, one of which must be an active FedEx pilot, and the other 2 may be active FedEx pilots and/or retired FedEx pilots. All 3 have equal voting rights. There is also an alternate Board Member who may be an active or retired Fedex pilot. The alternate Board Member votes in one of the regular members' absence. SIGNIFICANT CHANGES TO THE ORGANIZATIONAL DOCUMENTS FORM 990, PART VI, LINE 4 In March 2016, the Plan document was amended and restated effective November 3, 2015. The following is a summary of the significant changes: - Effective for retirements on or after November 3, 2015, pilots are no longer required to be covered under the Company-sponsored active or retiree group health plan. - Effective January 1, 2016, the Plan has added Medicare Part B coverage as eligible for reimbursement. - Effective for retirement on or after November 3, 2015, the premium reimbursement will be pro-rated 4% per year of pilot service, up to a maximum of 25 years of pilot service. - Effective with the Company's first pay period in November 2015, the Company's contribution is increased to one (1) dollar per credit hour for each pilot on the seniority list. Additionally, each November thereafter, the contributions will increase by five (5) cents per credit hour for each pilot on the seniority list. - Effective November 3, 2015 the structure of the Administrative Board changed to consist of three or four members as determined by the Air Line Pilots Association, International. There will be three voting members, and if there is a fourth member, the fourth member will be an alternative who will vote in absence of one of the regular members. Additionally, any member may be an active or retired pilot; however, there must be at least one active pilot. MEMBERS OR STOCKHOLDERS WHO MAY ELECT FORM 990, PART VI, SECTION A, LINE 7A THE PRESIDENT OF THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL, HAS THE POWER TO APPOINT AND REMOVE ALL MEMBERS OF THE ADMINISTRATIVE BOARD. DECISIONS SUBJECT TO APPROVAL Form 990, Part VI, Section A, Line 7b AS THE ASSOCIATION IS THE PLAN SPONSOR, THE PRESIDENT OF THE ASSOCIATION SIGNS ANY PLAN DOCUMENTS AND ANY CHANGES TO THE PLAN DOCUMENT. COMMITTEE WITH AUTHORITY Form 990, Part VI, Section A, Line 8B The organization does not currently have committees with authority to act on behalf of the governing body. FORM 990 REVIEW PROCESS Form 990, Part VI, Section B, Line 11b The final draft of the organization's form 990 is sent to the VEBA Board Members; Steven Hodgson, ALPA management; and Barbara Esplin - consultant who coordinates the audit, Form 5500 and Form 990 for the Plan. Each person reviews the draft Form 990 and is requested to provide any feedback to Barbara Esplin, who in turn reports any comments back to Grant Thornton. The comments are incorporated into the final version of the Form 990 which is filed with the IRS. CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT FORM 990, PART VI, SECTION B, LINE 12C 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 "[I]T 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. PROCESS FOR DETERMINING COMPENSATION Form 990, Part VI, Section B, Line 15a 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. Process for Determining Compensation Form 990, Part VI, Section B, Line 15b 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. Public Availability of Information Form 990, Part VI, Section C, Line 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC TO THE EXTENT REQUIRED BY LAW. METHOD OF ACCOUNTING Form 990, Part XII, Line 1 The Plan's financial statements are prepared on the modified cash basis of accounting, which is consistent with the basis used to prepare the Plan's Form 5500. Certain revenue and related assets are recognized when received, and others, such as investment income, are recognized when earned. Certain expenses are recognized when paid rather than when the obligation is incurred. Purchases and sales of securities are recognized as of the date of the trade, and any related receivable or payable pending settlement is reflected in the statements of net assets available for benefits. AIR LINE PILOTS ASSOCIATION int'l 535 HERNDON PARKWAY HERNDON VA 20170 360710830 LABOR UNION VA 501(C)(5) N/A NA false ALPA Emergency Relief Fund inc 535 HERNDON PARKWAY HERNDON VA 20170 141936814 Support ALPA VA 501(C)(3) 12 - TYPE I ALPA false 1625 Massachusetts Ave nw corp 535 HERNDON PARKWAY HERNDON VA 20170 520946056 Rent Property VA 501(C)(2) N/A ALPA false Air Line Pilots Association PAC 535 HERNDON PARKWAY HERNDON VA 20170 521062313 PAC VA 527 N/A ALPA false ALPA Pilot Welfare Benefit Plan 535 HERNDON PARKWAY HERNDON VA 20170 541775762 VEBA VA 501(c)(9) N/A ALPA false Retiree Health Plan for employees ofalpa 535 HERNDON PARKWAY HERNDON VA 20170 541587464 VEBA VA 501(c)(9) N/A ALPA false Kitty Hawk Insurance Company Ltd FB Perry Bldg-1st FL 40 Church St Hamilton HM 12 BD captive ins. BD ALPA C Corp false ALPA Canada Insurance Trust 360 ALBERT Street suite 1715 K1R Ottawa Ontario CA VEBA CA ALPA Trust false false false false false false false false false false false false true true true true true false false false