Atlanta Plumbers and Steamfitters Health and Welfare Fund c/o National Employee Benefits Administrators, Inc. 1 (888)

Transcription

1 c/o To: All Plan Participants From: Board of Trustees Date: April 25, 2017 RE: Important Announcement regarding Dependent Coverage As a member of Plumbers, Pipefitters, & HVACR Technicians Local 72 ( Local 72 ) you receive health care benefits through the Atlanta Plumbers and Steamfitters ( the Fund ). The Fund is run by a group of people called the Board of Trustees; the Trustees include Local 72 representatives and representatives from employers that employ Local 72 members ( Contributing Employers ). On an ongoing basis, the Board of Trustees monitors the financial status of the Fund; their focus is to provide you with the best benefits available using the monies paid into the Fund. Over the last year and a half, the Board of Trustees has issued a number of communications indicating that changes are necessary in order to bring the Fund s expenses in line with income. The Trustees have been working diligently towards achieving a balanced budget for the Fund in order to protect its long term financial health. The Trustees have considered and continue to consider many different ways to increase income and reduce expenses in a balanced way, without placing all of the burden of change on one group or entity. The Trustees believe that this problem is one that can only be solved together, with participation and compromise from all parties. Local 72, Contributing Employers and Participants must all be part of the solution. The following pages describe how the Fund s eligibility rules are changing with respect to dependent coverage. In order to maintain coverage for dependents, your action will be required. Please carefully review this memorandum and Summary of Material Modifications (SMM) and contact NEBA with any questions. Board of Trustees Union Trustees Mr. Jeff Housworth Co-Chairman Mr. Terry Newsome, Jr. Mr. Steve Newsome Mr. Terry Sinyard Mr. Greg Stephens Employer Trustees Mr. Jon Sterling Co-Chairman Maxair Mechanical, Inc. Mr. Gary Fowler Mechanical Contractors Association of Georgia Mr. Ken Harbour Cleveland Mechanical Services Mr. John McKenney McKenney s Inc. Mr. Grant Willis Willis Mechanical, Inc.

2 c/o These important steps are being taken with the sole focus of preserving the financial integrity of the Fund so that valuable benefits can continue to be provided to you now and in the future. Active Employees and Non-Bargaining Unit Employees Spousal coverage will continue to be available to non-bargaining unit employees and bargaining unit employees working in a classification under the Collective Bargaining Agreement (CBA) which requires contributions at a rate that is at least equal to the Journeyman Health and Welfare contribution rate. Coverage for dependent children will continue to be available to non-bargaining unit employees and bargaining unit employees working in all classifications. Please refer to your Collective Bargaining Agreement for specific contribution rates. As of the date of this memo, CBA classifications with a Health and Welfare contribution rate at least equal to the Journeyman Health and Welfare contribution rate include: 1 st - 5 th year Apprentice Foreman, Crew Foreman, & General Foreman Mechanical Equipment Serviceman Journeyman Provisional Journeyman Tradesman (Not Including Pipe Tradesman) Spousal coverage is no longer available to employees working in a CBA classification which requires contributions at a rate that is less than the Journeyman Health and Welfare contribution rate. This coverage was eliminated effective April 1, 2017 and notice was provided in a memo dated January 31, As of April 1, 2017, these classifications include Helper, Pipe Tradesman and Residential. Please refer to your Collective Bargaining Agreement for specific contribution rates. Eligible employees working in a classification that permits spousal coverage must determine whether or not they wish to elect spousal coverage. Employees should consider all coverage options available for their spouse, such as coverage through his/her employer or the Healthcare Marketplace. Loss of coverage under the Atlanta Plumbers and Steamfitters may trigger special enrollment rights for spouses who have lost coverage, which would allow them to enroll in another group health plan or in a plan available through the Healthcare Marketplace at Healthcare.gov.

3 c/o Each employee who elects to cover his/her spouse as a dependent must make a weekly contribution of $25, effective the first payroll period in June First Year Apprentices are exempt from this contribution requirement. Contribution payments will be collected by Contributing Employers via payroll deductions. Contribution rates are set by the Board of Trustees and may be modified periodically. Each employee who elects to cover his/her dependent child(ren) must make a contribution for coverage. First Year Apprentices are exempt from this contribution requirement. The contribution requirements for dependent child(ren) coverage vary. First Year Apprentices are exempt from this contribution requirement. o The dependent child(ren) contribution rate for employees working in a classification under the Collective Bargaining Agreement (CBA) which requires contributions at a rate that is at least equal to the Journeyman Health and Welfare contribution rate has been set at $5 per week, effective the first payroll period in June This rate is for all dependent children covered by the employee; it is not a per-child rate. Contribution payments will be collected by Contributing Employers via payroll deductions. o The dependent child(ren) contribution rate for employees working in a classification under the Collective Bargaining Agreement (CBA) which requires contributions at a rate that is less than the Journeyman Health and Welfare contribution has been set at $250 per month, per child. This contribution requirement was effective April 1, 2017 and notice was provided in a memo dated January 31, As of April 1, 2017, these classifications include Helper, Pipe Tradesman and Residential. Contribution payments must be self-paid by employees. Employees who are out of work may elect to pay their dependent coverage contributions by withdrawing hours from their bank. One hour will be worth the value of the then-current hourly Journeyman Health & Welfare contribution rate. For example, based on the current rate of $5.51, 4.54 hours may be withdrawn in order to pay a $25.00 contribution. ($25.00 / $5.51 = 4.54 hours). Employees will be required to complete a request form in order to do this. Employees may elect to selfpay the contribution instead.

4 c/o Each year, during an Open Enrollment period, employees must decide whether or not to cover their dependent spouses and/or children for the upcoming year. Enrollment elections may be made using a paper form or online through the Member Portal website; details will be provided in a separate Open Enrollment notice. Employees may not change their dependent coverage election during the year, outside of the Open Enrollment period, unless a Qualifying Event has occurred. Qualifying Events include life changes such as marriage, divorce and birth of a child. The first Open Enrollment will be conducted from May 1 st May 20 th for coverage effective September 1, During this Open Enrollment period, employees will be given the opportunity to elect dependent spouse and/or dependent child(ren) coverage effective September 1, An in-person Open Enrollment meeting will be held at the Local 72 Union Hall from 8:00 a.m. 5:00 p.m. on May 2, Further announcements will be made regarding in-person meetings to be scheduled at large employer sites. Subsequent Open Enrollments will be conducted each September for coverage changes effective the following January. During each annual Open Enrollment, employees may enroll new dependents, drop existing dependents or elect not to carry dependent coverage. Employees who do not elect coverage during Open Enrollment will lose coverage for their dependent spouse and/or child(ren) effective August 31, Dependents may be re-enrolled during the next Open Enrollment period for coverage effective January 1, Spouses and dependent children who lose coverage will be provided with a certificate of coverage showing the date coverage was lost. Spouses and dependent children may need this certificate in order to enroll in another plan.

5 c/o Early Retirees Who Retire on or After March 1, 2018 Early retirees are those retirees who elect retiree coverage prior to age 65. Each early retiree who retires on or after March 1, 2018, who elects to cover his/her spouse as a dependent, must make a monthly contribution of $108.34, in addition to the regular retiree contribution. Contribution rates are set by the Board of Trustees and may be modified periodically. Each early retiree who retires on or after March 1, 2018, who elects to cover his/her dependent child(ren), must make a monthly contribution of $21.67, in addition to the regular retiree contribution. Contribution rates are set by the Board of Trustees and may be modified periodically. Enclosed with this memorandum is a Summary of Material Modifications (SMM) which describes these changes in detail. The SMM should be kept with your Summary Plan Description (SPD). Also enclosed is an Open Enrollment notice which provides details regarding how you may elect spousal and dependent child(ren) coverage. As always, please feel free to call the Plan s Third Party Administrator, National Employee Benefits Administrators, Inc. ( NEBA ) at (888) with any questions.

6 c/o Summary of Material Modifications June 1, 2017 This document is a Summary of Material Modifications (SMM) which describes changes to the Atlanta Plumbers and Steamfitters (the Fund ). This SMM modifies the language found in your Summary Plan Description (SPD). All statements made in this document are subject to the terms and conditions of the Plan Document. If there is a discrepancy between the SPD or this SMM and the Plan Document, the Plan Document will govern. Copies of the SPD and Plan Document are available for review at any time during normal working hours at NEBA s offices. Active Employees and Non-Bargaining Unit Employees Eligibility Changes Dependent Coverage Effective for coverage September 1, 2017 and after, non-bargaining unit employees and bargaining unit employees working under Collective Bargaining Agreement (CBA) classifications that permit spousal coverage must make an election to cover their spouse as a dependent. As of the date of this memo, the classifications include: 1 st - 5 th year Apprentice Mechanical Equipment Serviceman Journeyman Foreman, Crew Foreman, & General Foreman Provisional Journeyman Tradesman (Not Including Pipe Tradesman) Each employee who elects to provide coverage to a dependent spouse under the Fund must make a weekly contribution of $25. First year Apprentices are exempt from this contribution requirement. Weekly spousal coverage contributions will be collected via payroll deductions. Effective for coverage September 1, 2017 and after, non-bargaining unit employees and bargaining unit employees working in a classification under the Collective Bargaining Agreement (CBA) which requires contributions at a rate that is at least equal to the Journeyman Health and Welfare contribution rate must make an election to cover their dependent child(ren) under the Fund and make a weekly contribution of $5, regardless of the number of dependent children

7 c/o covered. First year Apprentices are exempt from this contribution requirement. Weekly dependent child(ren) coverage contributions will be collected via payroll deductions. Employees who are out of work may elect to pay their dependent spouse and/or dependent child(ren) coverage contributions by withdrawing hours from their bank. One hour will be worth the value of the then-current hourly Journeyman Health and Welfare contribution rate. Early Retirees Who Retire on or After March 1, 2018 Eligibility Changes Dependent Coverage Early retirees are those retirees who elect retiree coverage prior to age 65. Each early retiree who retires on or after March 1, 2018, who elects to cover his/her spouse as a dependent, must make a monthly contribution of $108.34, in addition to the regular retiree contribution. Each early retiree who retires on or after March 1, 2018, who elects to cover his/her dependent child(ren), must make a monthly contribution of $21.67, in addition to the regular retiree contribution. As always, please feel free to call the Plan s Third Party Administrator, National Employee Benefits Administrators, Inc. ( NEBA ) at (888) with any questions.