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pilots' financial security

One of the reasons for existence of the Air Line Pilots Association is that, by the cooperative efforts of the membership, it should be possible to lessen the inherent financial and professional insecurity of the individual pilot.

One of the most basic insecurities of the air line piloting profession is the fact that a minor sickness or accident may deprive a pilot of his earnings for an extended period, or forever. Adequate protection against this insecurity, at a reasonable cost, has been extremely expensive or nonexistent. It is to meet this basic need of the air line pilot that the Board of Directors authorized the Association, by actions in 1947, 1950, and 1952, to explore three different types of protection - a mutual aid program, a group life insurance, and a loss of license or disability type insurance.

ALPA Credit Union...
In 1947, a Federal Credit Union was formed by the Association to create a savings and lending agency for the pilots' benefit.

The Credit Union's membership today totals 2,678 with over $1,050,000.00 in assets. Over $2,464,000.00 has been loaned out to members since its inception. It provides three services: (1) A savings repository; (2) A source of low-cost loans; (3) A place for investment of funds maintained with ready availability but at extremely good returns consistent with safety.

Mutual Aid Assn. ...
In June, 1953, the Mutual Aid Association was formed under which a pilot could insure his income for a 12-month period, starting after 60 days (average sick leave) and continuing through the 14th month in an amount either of $250.00 per month or $500.00 per month, depending on his income and preference. A $1,000 death benefit also is provided as an emergency fund for survivors. This program is underwritten by the participants in the program themselves - no commercial insurance company participates. Any active member in good standing may apply to the ALPA Insurance Dept., Chicago.

Loss-of-License...
In November, 1953, a loss of license insurance program was inaugurated, designed to begin payments at the end of mutual aid, or in the 15th month of disability, and to continue through the 48th month at either $250.00 a month or $500.00 a month. This policy is underwritten by a commercial insurance company and made available to members of ALPA through ALPA. Thus, a pilot who participates in mutual aid, and, in addition, purchases the disability protection, would, in the event of sickness or accident which prevented him from flying, receive up to $500.00 per month for four years to help him preserve his estate during the period of temporary disability or, in the event that he has to cease air line flying, provide him with a supplementary income during a period of rehabilitation in another line of endeavor.

ALPA Group Life...
A third facet of the insurance program now available to ALPA members is a low-cost group life insurance. The purpose of this program is to offer a pilot estate and family protection during his working life at the lowest possible costs. Provision for conversion to standard insurance on leaving the profession is included. The cost will be based on pilot mortality experience, and will result in a low-cost insurance not available elsewhere but made possible through the cooperative efforts of the pilots through the Association. Coverage under the Group Life program became effective August 1, 1954 with an initial enrollment of 5,260.

An adequate retirement program coupled with a realistic retirement age is a prime goal of every air line pilot and the Association. Work is in progress with a long range goal to achieve these objectives for the air line pilot.

[[image - 3 people at a table reviewing papers with 4 people standing behind them]]

Committee on Mutual Aid - A vital part of ALPA security program

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