Yes, Boeing offers a wide range of supplemental benefits to its employees. These benefits go beyond standard health insurance and base pay. They include supplemental life insurance, supplemental retirement savings plans, disability coverage, voluntary insurance products, and executive deferred compensation programs.
Under the Employee Retirement Income Security Act (ERISA), employers like Boeing must follow strict federal rules when offering qualified retirement plans. Section 415 of the Internal Revenue Code caps how much employees can contribute to qualified plans like a 401(k), which means high earners often hit a wall when trying to save enough for retirement. Boeing addresses this gap with nonqualified supplemental plans that allow additional savings beyond those federal limits.
According to the Bureau of Labor Statistics, only about 40% of private industry workers have access to employer-sponsored supplemental life insurance. Boeing employees sit in a privileged position because the company funds basic coverage at no cost and offers multiple supplemental tiers across life, disability, and retirement benefits.
Here is what you will learn in this article:
- 🔍 How Boeing’s supplemental retirement plans work and who qualifies for each one
- 💰 What supplemental life insurance and disability options Boeing provides at no cost and for a fee
- ⚖️ How federal laws like ERISA and IRC Section 409A shape the rules around Boeing’s nonqualified benefit plans
- 🏥 Which voluntary supplemental insurance products Boeing employees can purchase through MetLife and Aetna
- 🛡️ What mistakes to avoid when choosing supplemental benefits so you do not lose money or coverage
How Federal Law Shapes Boeing’s Supplemental Benefit Plans
The federal government sets the ground rules for every employer-sponsored benefit plan in the United States. ERISA, passed in 1974, requires that qualified plans like 401(k)s meet strict standards for funding, vesting, reporting, and fiduciary responsibility. Boeing’s qualified plans, including the Voluntary Investment Plan (VIP), must follow all of these rules.
The Internal Revenue Code creates annual contribution limits that directly affect how much employees can save. For 2025, the IRS allows employees to defer up to $23,500 into a 401(k) plan. Employees aged 50 and older can add another $7,500 in catch-up contributions.
Boeing’s supplemental plans exist because of these federal limits. When a Boeing executive or highly compensated employee earns well above the IRC Section 401(a)(17) compensation limit, their employer match and personal contributions get cut short. The company’s Supplemental Savings Plan (SSP) and Executive Supplemental Savings Plan fill this gap by operating as nonqualified deferred compensation plans under IRC Section 409A.
Section 409A carries serious consequences for noncompliance. If a nonqualified plan violates 409A rules, the employee faces immediate taxation on all deferred amounts, a 20% additional tax penalty, and interest charges. Boeing structures its supplemental plans carefully to avoid triggering these penalties for participants.
Boeing’s Supplemental Retirement Savings Plans Explained
Boeing offers several retirement savings vehicles that stack on top of the core 401(k) plan. Each one serves a different purpose and targets a different group of employees. Understanding how they connect helps you make smarter decisions about your money.
The Boeing 401(k) Voluntary Investment Plan (VIP)
The VIP is Boeing’s primary 401(k) plan and serves as the foundation for all supplemental retirement benefits. Most nonunion Boeing employees receive a dollar-for-dollar company match on the first 10% of their salary contributed to the VIP. For IAM union members who ratified the 2024 contract, Boeing matches 100% of contributions up to 8% of pay, plus a special 4% company retirement contribution.
All Boeing 401(k) contributions vest immediately. This is a major advantage over many other large employers that impose multi-year vesting schedules. Your money, including the company match, belongs to you from day one.
The VIP offers a range of investment options, including target date funds, index funds, and actively managed funds. Employees can contribute on a pre-tax, Roth, or after-tax basis. The after-tax option opens the door to the Mega Backdoor Roth strategy.
The Boeing Supplemental Savings Plan (SSP)
The Boeing SSP is a nonqualified deferred compensation plan designed for employees whose earnings exceed IRS limits. When your compensation passes the Section 401(a)(17) threshold, you can no longer receive the full company match in your 401(k). The SSP picks up where the 401(k) leaves off by allowing additional deferrals.
Because the SSP is nonqualified, it does not receive the same ERISA protections as the 401(k). If Boeing were to face bankruptcy, SSP balances would be treated as unsecured creditor claims. This is the trade-off for the ability to save beyond federal limits.
The SSP offers investment options similar to the VIP, and participants can choose between lump-sum payments or installment distributions at retirement. Fidelity Investments manages the SSP alongside the VIP, which simplifies account management for employees.
The Boeing Executive Supplemental Savings Plan
The Executive SSP takes supplemental retirement savings a step further for Boeing’s senior leadership. This plan is also a nonqualified deferred compensation plan subject to IRC Section 409A. It serves as both an excess benefit plan under ERISA Section 3(36) and an unfunded top-hat plan for select management employees.
Under the Executive SSP, eligible executives can defer base salary and receive company matching contributions that exceed IRC limits. Executives can also defer annual incentive compensation and performance awards. Additional base salary deferrals beyond the match-eligible amount do not receive a company match.
The Executive SSP carries the same bankruptcy risk as the standard SSP. The potential tax savings and additional retirement accumulation can be substantial for executives earning well above the IRS compensation cap.
The Boeing Mega Backdoor Roth Program
Boeing’s Mega Backdoor Roth program is one of the most powerful supplemental savings tools available to employees. This strategy lets employees contribute approximately $25,000 in additional after-tax dollars to their 401(k), on top of the standard $23,500 pre-tax or Roth limit. Those after-tax contributions can then be converted into a Roth 401(k) or Roth IRA for tax-free growth.
The total 401(k) contribution limit for 2025 is $70,000 for employees under 50, and $77,500 for those 50 and older. This cap includes employee deferrals, employer matching, and after-tax contributions. The Mega Backdoor Roth fills the gap between your regular contributions plus the company match and that total limit.
Here is a scenario that shows how this works:
| Employee Action | Financial Outcome |
|---|---|
| Sarah, age 42, contributes 10% of her $150,000 salary to her VIP on a Roth basis ($15,000) | Boeing matches dollar-for-dollar at 10%, adding another $15,000 |
| Sarah maxes out her pre-tax/Roth limit at $23,500 | She has used $23,500 of the $70,000 total annual limit |
| Sarah elects to contribute $25,000 in after-tax dollars through the Mega Backdoor Roth | She converts these funds to a Roth account for tax-free growth |
| Sarah’s total retirement savings for the year | $63,500 ($23,500 Roth + $15,000 match + $25,000 after-tax conversion) |
Not every employer offers this option. Boeing employees have a rare advantage because the VIP plan allows both after-tax contributions and in-plan Roth conversions.
Boeing’s Supplemental Life Insurance and AD&D Benefits
Boeing provides basic life insurance and accidental death and dismemberment coverage at no cost to employees. The supplemental options let employees purchase additional protection for themselves and their families.
Company-Paid Basic Coverage
Every eligible Boeing employee receives basic life insurance and AD&D coverage paid for entirely by the company. This baseline coverage provides a financial safety net at zero cost to the employee. The exact amount of basic coverage depends on your job level and employment classification.
Supplemental Life Insurance Options
Employees can buy supplemental life insurance and supplemental AD&D coverage for an additional premium. These policies let you increase your death benefit well beyond the basic level. The cost depends on your age, the amount of coverage you select, and whether you add coverage for a spouse or dependents.
Boeing also offers several life insurance policy riders that provide even more flexibility. The accelerated benefits rider allows you to collect a portion of your death benefit while still alive if you receive a terminal illness diagnosis. The disability income rider provides monthly income if you become permanently disabled.
| Rider Type | What It Does |
|---|---|
| Accelerated Benefits Rider | Lets you access part of your death benefit early if diagnosed with a terminal illness or confined to a nursing home |
| Disability Income Rider | Pays a monthly income if you become totally and permanently disabled, with a premium proportional to your face amount |
| Cost-of-Living Rider | Increases your death benefit each year to match inflation, keeping your coverage value from eroding |
| Waiver-of-Premium Rider | Boeing’s insurer pays your premiums if you become totally and permanently disabled, after a 3-to-6-month waiting period |
| Long-Term Care Rider | Allows you to use your death benefit to pay for long-term care, sometimes exceeding the original death benefit amount |
The waiver-of-premium rider is especially important. If you become disabled and cannot work, the last thing you want is to lose your life insurance because you cannot afford the premiums. This rider eliminates that risk after a short waiting period.
Supplemental Coverage Through Employee Benefit Systems
Boeing employees at certain locations, including the Seattle/Puget Sound area, can access additional supplemental protection through Employee Benefit Systems. This includes guaranteed-issue lifetime benefit term insurance with coverage up to $100,000 for members and up to $30,000 for spouses, with no medical exam required. A long-term care rider is also available with this coverage.
Boeing’s Supplemental Health and Voluntary Insurance Benefits
Beyond the core medical, dental, and vision plans, Boeing offers a suite of voluntary supplemental insurance products. These plans help employees cover gaps that standard health insurance may not address.
Voluntary Benefits Through MetLife
Boeing partners with MetLife to offer several voluntary supplemental insurance plans. These are optional coverages that employees purchase with their own money, often at group rates lower than individual market prices.
| Voluntary Benefit | Coverage Details |
|---|---|
| Critical Illness Insurance | Pays a lump sum if you are diagnosed with a covered critical illness like cancer, heart attack, or stroke |
| Accident Insurance | Pays benefits for covered injuries from accidents, helping with out-of-pocket medical costs or personal expenses |
| Hospital Indemnity Insurance | Pays a daily or per-visit benefit for covered hospital stays, including pre-existing conditions |
| Legal Plans | Provides access to legal services for common needs like wills, real estate transactions, and family law matters |
| Identity Theft Protection | Monitors your personal information and helps restore your identity if fraud occurs |
Critical illness insurance through Boeing’s plan with Aetna lets employees choose a lump-sum benefit of $15,000, $25,000, or $50,000. This money comes directly to you and can be used for anything, from medical bills to mortgage payments during recovery. The plan is available to employees and their family members.
Health Savings Account (HSA) as a Supplemental Tool
Employees enrolled in Boeing’s Advantage+ health plan can contribute to a Health Savings Account. The HSA functions as a supplemental benefit because it provides triple tax advantages: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Boeing also makes company contributions to HSAs for enrolled employees.
For 2025, individual HSA contribution limits are $4,300, and family coverage limits are $8,550. Employees aged 55 and older can contribute an additional $1,000 as a catch-up contribution. The HSA balance rolls over year to year and belongs to the employee even after leaving Boeing.
Flexible Spending Accounts (FSAs)
Boeing offers both Health Care FSAs and Dependent Care FSAs. These accounts let employees set aside pre-tax dollars for eligible expenses. The Health Care FSA covers medical, dental, and vision expenses not paid by insurance, while the Dependent Care FSA covers child care and elder care costs.
FSAs differ from HSAs in one critical way: most FSA funds operate on a use-it-or-lose-it basis. If you do not spend the money by the end of the plan year, you forfeit it. This makes careful planning essential when deciding how much to contribute.
Boeing’s Supplemental Disability Benefits
Disability coverage is one of the most overlooked supplemental benefits at Boeing. Losing your income due to illness or injury can be financially devastating, and Boeing provides both short-term and long-term disability options.
Short-Term Disability (STD)
Full-time Boeing employees have access to short-term disability benefits that provide partial income replacement during a temporary illness or injury. For IAM union members under the 2024 contract, the short-term disability plan covers 60% of base pay for up to 26 weeks. The 2024 IAM contract included significant improvements to the short-term disability plan.
Long-Term Disability (LTD)
Boeing offers basic long-term disability coverage and the option to purchase supplemental LTD coverage. Basic LTD provides a percentage of your pre-disability income if you remain unable to work beyond the short-term disability period. Supplemental LTD coverage increases the monthly benefit amount.
Increases in other income, such as Social Security Disability Insurance or workers’ compensation payments, can reduce your long-term disability benefits. This is called an offset provision, and it is standard in most employer-sponsored LTD plans. Understanding this offset is critical when planning your overall financial safety net.
The 2024 IAM Contract and New Disability Protections
The 2024 IAM District 751 contract ratification brought landmark changes to disability benefits for Boeing’s union workforce. The contract introduced a brand-new long-term disability plan for IAM members and made major improvements to short-term disability. Before this contract, IAM members had more limited disability protections compared to nonunion employees.
The ratified contract also included a 43.65% compounded wage increase over four years, a $12,000 ratification bonus, reinstatement of the AMPP incentive plan with a guaranteed 4% minimum annual payout, and a $105 pension multiplier for vested pension participants. These provisions directly affect the base income that disability benefits are calculated from.
How Union Status Changes Your Supplemental Benefits at Boeing
Boeing employees work under different benefit structures depending on whether they belong to a union. The three main groups are nonunion employees, IAM (International Association of Machinists) members, and SPEEA (Society of Professional Engineering Employees in Aerospace) members.
Nonunion vs. IAM vs. SPEEA Benefits
| Benefit Feature | How It Differs by Group |
|---|---|
| 401(k) Match | Nonunion: 100% match up to 10% of salary; IAM: 100% match up to 8% plus 4% company contribution; SPEEA: terms set by collective bargaining agreement |
| Pension Eligibility | Nonunion: not available for hires after January 1, 2009; IAM: $105 pension multiplier for vested members; SPEEA: depends on contract terms |
| Health Insurance Premiums | Nonunion: varies by plan; SPEEA: historically lower premiums with better deductibles; IAM: healthcare cost containment provisions in 2024 contract |
| Short-Term Disability | Nonunion: company-provided STD plan; IAM: 60% of base pay for up to 26 weeks; SPEEA: contract-specific terms |
| Washington State PFML | Nonunion: eligible and paying premiums; IAM: began payroll deductions January 1, 2024; SPEEA: terms vary by contract |
The Washington State Paid Family and Medical Leave exemption is particularly important. Washington’s PFML law originally excluded workers covered by collective bargaining agreements. The law changed in 2022 to end this exclusion on December 31, 2023. Beginning January 1, 2024, IAM members started seeing the 0.53% PFML payroll deduction.
Individual eligibility for PFML benefits can be affected by leave type. Employees cannot claim both workers’ compensation and PFML benefits at the same time. This interaction between state and employer benefits creates a planning challenge that every Boeing employee in Washington should understand.
SPEEA members often receive more favorable health insurance terms. One SPEEA member reported paying approximately $14 per paycheck to cover a family of four under the preferred partnership option, with a total deductible of $3,000 and a $2,400 Boeing HSA contribution. These rates are lower than what nonunion employees pay for comparable coverage.
Boeing’s Supplemental Benefit Plan for Executives
Boeing maintains a formal Supplemental Benefit Plan (SBP) that provides additional retirement and deferred compensation benefits to select management and highly compensated employees. This plan is separate from the SSP and Executive SSP discussed earlier.
How the Executive SBP Works
The SBP restores benefits that are lost due to IRS limits on qualified plans. Under IRC Section 415 and Section 401(a)(17), qualified plan benefits get capped at certain dollar amounts. The SBP makes up the difference by providing supplemental employer contributions that mirror what the employee would have received if no IRS limits existed.
Eligibility for the SBP requires meeting specific conditions related to compensation level and job classification. Once eligible, a participant receives Executive SBP+ Company Contributions for each plan year they remain qualified. If you leave Boeing and are later rehired, you must satisfy all eligibility conditions again before you can rejoin the plan.
The Defined Benefit SERP
Boeing also offers a Defined Benefit Supplemental Executive Retirement Plan (DB SERP) for certain executives. The DB SERP pays the greater of an excess benefit or a supplemental target benefit that enhances what the executive would have received under the pension plan without IRS limits. Unmarried participants receive the DB SERP as a single life annuity. Married participants can elect a single life annuity or a joint and survivor option.
Boeing’s Medicare Supplement Plans for Retirees
Boeing retirees have access to company-sponsored Medicare supplement coverage. In 2023, Boeing replaced the Boeing Medicare Supplement Plan (BMSP) with a fully insured Aetna Medicare Advantage PPO plan with an Extended Service Area network.
What Changed for SPEEA Retirees
Under a letter of understanding between SPEEA and Boeing, eligible SPEEA-represented retirees receive the exact same Medicare Advantage plan with the same premiums as the nonunion Boeing population. If Boeing introduces premiums for this plan in the future, there will be one nationwide premium per enrollee.
If Boeing ever terminates the nonunion Medicare plan without a replacement, the company must reintroduce the BMSP in its 2023 form or offer a plan with similar actuarial value for SPEEA retirees. Eligible SPEEA-represented retirees must enroll in Medicare Part A and Part B to access Boeing-sponsored Medicare coverage.
Three Real-World Scenarios for Boeing Supplemental Benefits
Scenario 1: The Mid-Career Engineer Maximizing Retirement Savings
Marcus is a 45-year-old nonunion Boeing systems engineer earning $180,000 per year. He wants to save as much as possible for retirement.
| Marcus’s Action | Financial Outcome |
|---|---|
| Contributes 10% of salary ($18,000) to VIP on a Roth basis | Boeing matches 100%, adding $18,000, totaling $36,000 in the VIP |
| Maxes out his 401(k) at $23,500 Roth | Uses remaining room for after-tax contributions |
| Contributes $25,000 through Mega Backdoor Roth | Converts to Roth for tax-free retirement growth |
| Contributes $4,300 to HSA | Gains triple tax benefit on medical savings |
| Total retirement and supplemental savings for the year | Approximately $70,800 across all accounts |
Marcus uses three supplemental tools — the Mega Backdoor Roth, the full employer match, and the HSA — to put away nearly $71,000 in a single year.
Scenario 2: The IAM Union Member Navigating New Disability Benefits
Priya is a 38-year-old IAM member working at Boeing’s Renton, Washington facility. She injures her back on the job and cannot work for several months.
| Priya’s Situation | Benefit She Receives |
|---|---|
| Files workers’ compensation claim under Washington state law | Receives wage replacement from Washington Department of Labor & Industries |
| Applies for short-term disability under IAM contract | Receives 60% of base pay for up to 26 weeks |
| Considers applying for Washington PFML | Cannot collect PFML benefits at the same time as workers’ compensation |
| Injury extends beyond 26 weeks | Transitions to the new long-term disability plan introduced in the 2024 IAM contract |
| Returns to work with partial restrictions | Workers’ compensation may provide supplemental payments for reduced earning capacity |
Priya’s case shows why understanding the interaction between state workers’ compensation, union disability benefits, and state PFML is essential. Collecting overlapping benefits can trigger offsets that reduce your total payout.
Scenario 3: The Executive Using the Supplemental Benefit Plan
David is a Boeing vice president earning $500,000 per year. The IRS compensation limit means his 401(k) match gets capped well below what he could otherwise receive.
| David’s Action | Financial Outcome |
|---|---|
| Contributes maximum to VIP, but match is capped at 10% of the IRS compensation limit | Loses potential match on income above the cap |
| Enrolls in the Executive SSP | Makes restoration deferrals to capture matching contributions on income above the IRS limit |
| Elects to defer 20% of annual incentive compensation into Executive SSP | Grows savings tax-deferred until distribution |
| Receives Executive SBP+ Company Contributions | Boeing restores the employer contributions lost due to IRS caps |
| Risk factor | Executive SSP and SBP balances are unsecured if Boeing faces bankruptcy |
David’s supplemental plans restore hundreds of thousands of dollars in retirement benefits over a career. The trade-off is the unsecured creditor risk that comes with every nonqualified deferred compensation plan.
Mistakes to Avoid With Boeing Supplemental Benefits
Not contributing enough to get the full employer match. If you are a nonunion employee and contribute less than 10% of your salary to the VIP, you leave free money on the table. Boeing matches dollar-for-dollar up to 10%. Every percentage point below that cap is money you gave away.
Ignoring the Mega Backdoor Roth opportunity. Many Boeing employees do not realize they can contribute an additional $25,000 in after-tax dollars and convert it to Roth. Over a 20-year career, this could mean hundreds of thousands of dollars in tax-free retirement income that you missed.
Treating the SSP like a 401(k). The Supplemental Savings Plan is a nonqualified plan. It does not have ERISA protections. If Boeing were to declare bankruptcy, your SSP balance would be at risk.
Overfunding your FSA. Flexible Spending Accounts operate on a use-it-or-lose-it basis. If you contribute $3,000 to your Health Care FSA but only spend $1,500 on eligible expenses, you forfeit $1,500. Be conservative with your FSA elections unless you have predictable medical expenses.
Failing to coordinate disability benefits. Boeing’s short-term disability, long-term disability, workers’ compensation, and state PFML benefits can overlap and offset each other. Filing for multiple benefits without understanding how they interact can result in lower total payments than you expected.
Skipping supplemental life insurance when you have dependents. Boeing’s basic life insurance provides a baseline, but it may not be enough to protect your family. Supplemental coverage is available at group rates that are often cheaper than individual policies on the open market. Young, healthy employees should lock in low rates early.
Missing open enrollment deadlines. Many supplemental benefits, including voluntary insurance products through MetLife and Aetna, can only be elected during open enrollment. If you miss the window, you may have to wait an entire year before you can enroll.
Pros and Cons of Boeing’s Supplemental Benefits
| Pros | Cons |
|---|---|
| Immediate vesting on all 401(k) company match contributions means you own every dollar from day one | Nonqualified plans carry bankruptcy risk because SSP and Executive SSP balances are unsecured creditor claims |
| Mega Backdoor Roth lets employees save an additional ~$25,000 per year in tax-free retirement accounts | FSAs use-it-or-lose-it rule means unspent funds are forfeited at the end of the plan year |
| Dollar-for-dollar match up to 10% for nonunion employees is among the most generous in aerospace | Union members receive different match rates with IAM at 8% match plus 4% company contribution |
| Guaranteed-issue supplemental life insurance is available without a medical exam at certain coverage levels | Supplemental insurance premiums increase with age making it more expensive the longer you wait to enroll |
| Triple tax advantage HSA provides pre-tax contributions, tax-free growth, and tax-free withdrawals for medical expenses | HSA requires enrollment in the Advantage+ plan which has higher deductibles than some other Boeing health plan options |
| New long-term disability plan for IAM members under the 2024 contract fills a major prior gap in coverage | State benefit interactions are complex with workers’ compensation, PFML, and employer disability plans potentially offsetting each other |
| Company-paid basic life insurance and AD&D costs employees nothing and provides a financial safety net | Supplemental life insurance riders add cost and some riders like the cost-of-living rider increase premiums each year |
Do’s and Don’ts for Boeing Supplemental Benefits
Do contribute at least 10% of your salary to the VIP if you are a nonunion employee. This captures the full company match, which is the single most valuable supplemental benefit Boeing offers.
Do consider the Mega Backdoor Roth if you can afford to save beyond the standard 401(k) limit. Tax-free growth over decades creates a massive advantage in retirement.
Do review your supplemental life insurance needs every time you experience a major life event like marriage, the birth of a child, or a home purchase. Your coverage needs change as your life changes.
Do enroll in the HSA if you are in the Advantage+ plan and can afford to let the money grow. The HSA can function as a supplemental retirement account if you pay current medical expenses out of pocket and let the HSA balance compound.
Do understand the offset rules between workers’ compensation, state PFML, and Boeing’s disability plans before you file a claim. Consulting with a benefits advisor can prevent surprises.
Don’t assume the SSP is as safe as the 401(k). It is not. The SSP lacks ERISA protections and puts your savings at risk in a corporate bankruptcy scenario.
Don’t skip open enrollment and assume your current elections carry over for all benefit types. Some voluntary benefits require annual re-enrollment.
Don’t over-contribute to your FSA without a clear plan for spending the funds. The forfeiture penalty is real and avoidable.
Don’t ignore the disability insurance options because you think injuries will not happen to you. A single unexpected illness can wipe out years of savings without adequate disability coverage.
Don’t wait until you are older to buy supplemental life insurance. Premiums are based on your age at enrollment. Locking in rates while you are young saves significant money over the life of the policy.
Key Entities That Manage Boeing’s Supplemental Benefits
Fidelity Investments manages Boeing’s 401(k) VIP, the Supplemental Savings Plan, and the Mega Backdoor Roth program. All account management, investment elections, and distributions flow through Fidelity’s platform. As of June 2025, documents related to 401(k) and pension plans must be submitted separately to Fidelity.
MetLife provides Boeing’s voluntary supplemental insurance products, including critical illness, accident, hospital indemnity, legal plans, and identity theft protection. Employees enroll through Boeing’s benefits portal during open enrollment.
Aetna administers Boeing’s critical illness insurance plan and the Medicare Advantage PPO plan for retirees. The Aetna critical illness plan offers lump-sum payouts of $15,000, $25,000, or $50,000.
Delta Dental handles Boeing’s dental coverage, including routine exams, cleanings, and restorative procedures. Davis Vision provides the vision plan covering eye exams, glasses, and contact lenses.
IAM District 751 represents approximately 33,000 Boeing workers in Washington state, Oregon, and California. The union negotiates supplemental benefit terms including disability coverage, pension multipliers, and 401(k) matching rates through collective bargaining.
SPEEA represents Boeing’s professional and technical engineers. SPEEA negotiates its own benefit terms separately from the IAM, often securing lower health insurance premiums and different supplemental benefit structures.
State-Specific Nuances That Affect Boeing Supplemental Benefits
Boeing operates major facilities in Washington, South Carolina, Missouri, California, Oregon, and other states. Each state has its own laws that interact with Boeing’s supplemental benefits in different ways.
Washington State
Washington has one of the most comprehensive paid family and medical leave programs in the country. The program provides up to 12 weeks of paid family leave and 12 weeks of paid medical leave. Boeing IAM members became eligible for PFML deductions starting January 1, 2024, after a prior exemption under the collective bargaining agreement ended.
Washington also has a state-run workers’ compensation system administered by the Department of Labor & Industries. Employees who are injured on the job receive wage replacement and medical coverage. Workers’ compensation benefits cannot be collected at the same time as PFML benefits.
South Carolina
South Carolina is a right-to-work state where Boeing operates a major 787 Dreamliner assembly facility. The state does not have a paid family leave law, so Boeing employees in South Carolina rely entirely on company-provided leave and disability benefits. Workers’ compensation in South Carolina is managed through the South Carolina Workers’ Compensation Commission.
Missouri
Boeing’s defense operations are centered in St. Louis, Missouri. Missouri workers’ compensation law requires employers to provide coverage for work-related injuries and illnesses. Missouri does not have a state paid family leave program, making Boeing’s supplemental disability benefits particularly important for employees there.
California and Oregon
Boeing IAM members in California and Oregon are covered under the same 2024 IAM contract as Washington state workers. California has its own State Disability Insurance (SDI) program and Paid Family Leave program, which interact with Boeing’s supplemental disability benefits. Oregon launched its Paid Leave Oregon program in 2023, adding another layer of state benefits that Boeing employees can access.
How Boeing’s Supplemental Retirement Benefits Changed After the 2024 IAM Strike
The 2024 IAM strike lasted nearly two months and resulted in one of the most significant contract improvements in Boeing’s history. The ratified agreement reshaped supplemental benefits for 33,000 union members across three states.
The 401(k) employer match increased to 100% on the first 8% of employee contributions, with an additional 4% special company retirement contribution maintained. The $12,000 ratification bonus gave members flexibility to direct funds into their 401(k) or receive them as cash. The AMPP incentive plan was reinstated with a guaranteed minimum 4% annual payout.
The pension multiplier was set at $105 per year of service for vested participants. While Boeing has moved away from traditional pensions for new employees, this provision protects the retirement income of long-tenured workers who built their careers under the old pension system.
The new long-term disability plan and improved short-term disability plan addressed a long-standing gap in union member benefits. These changes brought IAM disability coverage closer to what nonunion employees already had, creating a more equitable benefits structure across the company.
FAQs
Does Boeing offer supplemental life insurance?
Yes. Boeing provides basic life insurance at no cost and offers supplemental life insurance and AD&D coverage for an additional premium, with options for spouses and dependents.
Is the Boeing Supplemental Savings Plan safe from bankruptcy?
No. The SSP is a nonqualified plan without ERISA protections. If Boeing declared bankruptcy, SSP balances would be treated as unsecured creditor claims.
Can Boeing employees use the Mega Backdoor Roth?
Yes. Boeing’s VIP allows after-tax contributions and in-plan Roth conversions, enabling employees to save approximately $25,000 extra per year in tax-free accounts.
Do IAM union members get the same 401(k) match as nonunion employees?
No. Nonunion employees receive a 100% match up to 10% of pay. IAM members get 100% up to 8% plus a 4% special company retirement contribution.
Does Boeing offer supplemental disability insurance?
Yes. Boeing provides basic short-term and long-term disability coverage, with options to purchase supplemental LTD for higher monthly benefit amounts.
Can Boeing employees in Washington collect PFML and workers’ compensation at the same time?
No. Washington state law prohibits collecting both benefits simultaneously. Employees must choose one or coordinate the timing of their claims.
Does Boeing contribute to employees’ Health Savings Accounts?
Yes. Boeing makes company contributions to HSAs for employees enrolled in the Advantage+ health plan, supplementing the employee’s own pre-tax contributions.
Are Boeing’s voluntary benefits through MetLife available year-round?
No. Most voluntary supplemental insurance products can only be elected during the annual open enrollment period. Missing it means waiting until the next cycle.
Does Boeing offer a supplemental Medicare plan for retirees?
Yes. Boeing sponsors an Aetna Medicare Advantage PPO plan for eligible retirees, replacing the former Boeing Medicare Supplement Plan in 2023.
Is supplemental life insurance at Boeing guaranteed issue?
Yes, at certain coverage levels. Employees at select locations can get guaranteed-issue coverage up to $100,000 without a medical exam.
Do SPEEA members get better health insurance than nonunion employees?
Yes, in most cases. SPEEA members typically pay lower premiums and receive more favorable deductible and HSA contribution terms under their contract.
Can Boeing executives defer bonus compensation into supplemental plans?
Yes. The Executive SSP allows eligible executives to defer up to 100% of annual incentive compensation and performance awards into the nonqualified plan.
Related reading
- Should I Get Disability Insurance Through My Employer? (w/Examples) + FAQs
- Do Disability Insurance Policies Have Beneficiaries? (w/Examples) + FAQs
- Can You Have a Defined Benefit Plan and a 401(k)?(w/Examples) + FAQs
- Are Defined Benefit Plans Qualified? (w/Examples) + FAQs
- What Is a Kaiser Permanente Supplemental Retirement Plan? (w/Examples) + FAQs
- How Do Supplemental Retirement Plans Work? (w/Examples) + FAQs
- Is Nationwide Long-Term Care Insurance Worth It? (w/Examples) + FAQs