2016-11-14T16:59:26-06:00 2015-12-31 Grant Thornton LLP 2010 CORPORATE RIDGE SUITE 400 MCLEAN VA 22102 990 2015-01-01 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 2016-07-22 true Mary Torretta P00847851 7038477500 2015 2017-02-10 21:41:12Z STEVEN HODGSON 535 HERNDON PARKWAY HERNDON VA 20170 4533299 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 2225529 2442526 543454 2090773 0 0 2768983 4533299 0 0 1037367 1103459 23732 25922 0 0 0 352104 365198 1413203 1494579 1355780 3038720 90116682 90045944 1882213 2244589 88234469 87801355 X See Schedule O. false false PROVIDE A PREMIUM REIMBURSEMENT OF UP TO $1,344 PER PARTICIPANT FOR THE 1/1/2015 PLAN YEAR FOR ELIGIBLE RETIRED PILOTS AND/OR THEIR SPOUSES WHO ARE AGE 65 OR OVER AND WHO PURCHASE A MEDICARE SUPPLEMENT POLICY AND/OR MEDICARE PART D POLICY. THERE WERE APPROXIMATELY 1,382 PARTICIPANTS AT THE END OF THE 1/1/2015 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 5 0 true 0 false false false false false false X 3 3 false false false false false true true true false false false true true true true true true false false false X STEVEN HODGSON 7036894114 535 HERNDON PARKWAY HERNDON VA 20170 MIKE BROOME VEBA BOARD MEMBER 2.0 0.0 X 8753 0 0 Frank Maguire VEBA BOARD ALTERNATE MBR 2.0 0.0 X 6733 0 0 AL SMITH VEBA BOARD MEMBER 2.0 0.0 X 10436 0 0 Ken Binder VEBA Board Chairman 2.0 5.0 X 0 8267 0 Aaron Grady VEBA BOARD ALTERNATE 2.0 0.0 X 0 4099 0 THE NORTHERN TRUST COMPANY TRUSTEE 1.0 0.0 X 176873 0 0 STEVEN HODGSON MANAGER, ALPA R&I DEPT 5.0 40.0 X 0 271284 56208 Timothy Canoll President/ALPA 1.0 40.0 X 0 980037 61233 LEE MOAK FORMER PRESIDENT/ALPA 1.0 40.0 X 0 310383 8214 202795 1574070 125655 1 true true false The Northern Trust Company 800 Connecticut Ave NW 200 WASHINGTON DC 20006 Investment 176873 1 0 EMPLOYER CONTRIBUTIONS 900099 2442526 2442526 2442526 2090773 2090773 0 0 0 0 0 0 0 0 0 0 4533299 2442526 2090773 0 0 0 1103459 25922 0 0 0 0 0 0 0 31165 0 0 176873 0 0 0 0 0 0 0 0 0 0 0 0 5687 VEBA ACTUARY/CONSULTANT FEES 63563 BOARD MEMBER EXPENSES 7202 ADMINISTRATIVE EXPENSES 80708 1494579 0 0 0 0 0 0 1715553 1849603 0 0 0 0 0 0 0 0 0 0 0 88401129 88196341 0 0 0 0 0 0 0 0 90116682 90045944 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1882213 2244589 1882213 2244589 X 88234469 87801355 0 0 0 0 88234469 87801355 90116682 90045944 3038720 -3471834 X X false true X true false 0 PENDING TRADE PURCHASES 2244589 2244589 X 1061465 -3471834 -3471834 4533299 4533299 1494579 1494579 1494579 Schedule D, Part X, Line 2 The FedEx Pilots Post-Medicare Retiree Premium Reimbursement Plan qualifies under Section 501(c)(9) of the IRC as a VEBA. The VEBA has received an exemption letter from the Internal Revenue Service (IRS) dated 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 VEBAs 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 VEBAs 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 internal revenue code. 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 analysed the tax positions taken by the Plan, and has concluded that as of December 31, 2015 and 2014, 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. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2011. true false false LEE MOAK FORMER PRESIDENT/ALPA 0 12813 0 0 0 297570 0 8214 0 0 0 318597 0 0 STEVEN HODGSON MANAGER, ALPA R&I DEPT 0 251125 0 15758 0 4401 0 26500 0 29708 0 327492 0 0 Timothy Canoll President/ALPA 0 435049 0 0 0 544988 0 26500 0 34733 0 1041270 0 0 Severance Payments Schedule J, Part I, Line 4a Lee Moak received a severance payment of $128,187 in 2015. 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 A MEDICARE SUPPLEMENT HEALTH PLAN AND/OR A MEDICARE PART D PLAN. 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 The Board consists of two active pilots one of whom is a regular board member with voting rights, and one of whom is an alternate member who votes if the regular member is not present. The Board also consists of three retired pilot members, two of whom are regular board members with voting rights and one who votes if the one of the regular members is not present. 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 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 and Line 15b 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. 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) NA false ALPA Emergency Relief Fund Inc 535 HERNDON PARKWAY HERNDON VA 20170 141936814 Support ALPA VA 501(C)(3) 11-I ALPA false The 1625 Massachusetts Ave NW Corp 535 HERNDON PARKWAY HERNDON VA 20170 520946056 Rent Property VA 501(C)(2) ALPA false Air Line Pilots Association PAC 535 HERNDON PARKWAY HERNDON VA 20170 521062313 PAC VA 527 ALPA false ALPA Pilot Welfare Benefit Plan 535 HERNDON PARKWAY HERNDON VA 20170 541775762 VEBA VA 501(c)(9) ALPA false Retiree Health Plan for Employees oFALPA 535 HERNDON PARKWAY HERNDON VA 20170 541587464 VEBA VA 501(c)(9) ALPA false Kitty Hawk Insurance Company Ltd 41 Cedar Avenue Hamilton BD investment 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 false false false false