Summary of Your Benefits When You Leave The Boeing Company

Transcription

1 Summary of Your Benefits When You Leave The Boeing Company Premerger Boeing North American Employees Represented by UAW Local Nos. 864, 887, and 1519; IBPAT District Council 36; IBT Local Nos. 578 and 952; IBCJA Local 721; IBEW Local 2295; IUOE Local 501; and SMWIA Local 461 This guide applies to you if you are a union-represented employee of The Boeing Company. When you leave Boeing, your benefits will depend on how your departure is classified. Classifications include Layoff. Retirement from active employment.. This guide does not apply to you if you are terminated for cause or you depart as a result of divestiture. Because you might be eligible for more than one of these classifications (for instance, if you receive a layoff notice and you are eligible to retire), it is important to understand how each would affect your benefits. For example certain benefits will be less favorable if you resign. This guide describes each situation so that you are aware of the differences. This guide covers the following three topics: 1. How the classification of your departure will affect your benefits. 2. Eligibility criteria for Boeing pension benefits. 3. Sources for more information. Every effort has been made to provide an accurate summary of how benefits are affected for the union-represented employees of The Boeing Company. Certain eligibility and benefit provisions apply to each of the Plans, programs, and policies described in this guide; not all of these provisions are described here. In the event of a conflict between this guide and any of the Plans, the terms of the Plans will control. Updated summary plan descriptions may be obtained by contacting the applicable Boeing Service Center through Boeing TotalAccess. Copies of the official Plan documents are available at the cost of reproduction by written request to the Plan Administrator (see Sources for More Information and help in section 3). The Boeing Company reserves the right to change, modify, amend, or terminate any of the Plans or provisions described here at any time and for any reason for employees, former employees, retirees, and their dependents. A84229 June 2007

2 1. How Your Boeing Benefits Will Be Affected Your Boeing benefits will depend on the reason for your departure: whether you resign, are laid off, or retire from active employment. To determine whether you are eligible to retire, see section 2, beginning on page 6. The following table explains what happens in each situation. Reason for Your Departure Benefit Medical coverage Note: Continuation of coverage is provided in accordance with the Consolidated Omnibus Reconciliation Act of 1985 (COBRA). Coverage as an active employee will end on the last day of the month in which you resign. You and your eligible dependents then may be able to continue coverage through COBRA for up to 18 months by electing COBRA and by self-paying the required premiums. However, if you are considering resignation and you already are eligible to retire from Boeing, please refer to Retirement From Active in the right-hand column on this page. Coverage as an active employee will end on the last day of the month in which your layoff occurs. You will receive an additional month of coverage at the active contribution amount. You may be eligible for up to 6 additional months of subsidized medical coverage depending on your years of seniority as of your layoff date. You and your eligible dependents may enroll for COBRA coverage for 18 months beginning on the first day of the month after your layoff. Any subsidized extension of medical coverage will be reflected in your monthly bill. Once any subsidized extension is exhausted, you and your dependents then will be able to continue coverage for the remaining COBRA eligibility period by self-paying the required premiums. Coverage as an active employee will end on the last day of the month following the month in which you terminate from the Company. If you are eligible to retire and receive retiree medical coverage, see the next section for information. If you are not eligible for retiree medical coverage, you and your eligible dependents may be able to continue coverage through COBRA for up to 18 months by self-paying the required premiums. You will receive a COBRA notice automatically. You will have 60 days from the date you lost coverage to enroll in COBRA coverage. Note: Your pension benefit commencement date can be as early as the first day of the month after your termination date (unless you choose to defer receiving your pension benefit). See page 7 for information on when to contact the Boeing Pension Service Center. 2 A84229 June 2007

3 Reason for Your Departure Benefit Retiree medical coverage Note: Your eligibility for retiree medical benefits is based on your age, pension vesting service, and date of hire (new hires after 12/31/2004 are no longer eligible for retiree medical benefits in retirement). Note: IBT Local Nos. 578 and 952 and IUOE 501 should contact the service center for health and insurance through Boeing TotalAccess for retiree medical information. If you resign before you are eligible to retire, you will not receive retiree medical coverage. If you are eligible to retire but choose to defer commencement of your pension benefit, you may go ahead and retire and defer your retiree medical benefits if you have other group coverage available, for example through your spouse s medical plan at another employer or Boeing active medical COBRA. Enrolling After You Leave Boeing Under certain circumstances, you may wish to defer enrollment in your retiree health benefits. If you don t enroll when you first leave employment with Boeing, there are other specific enrollment opportunities for you to be aware of. However, you must request enrollment within the allowable time specified to be eligible. You can elect retiree medical coverage when Your Boeing COBRA coverage is exhausted or you drop COBRA coverage due to a significant change in cost. In either of these situations, you must request enrollment within 60 days of the date that COBRA coverage ends. You commence your pension benefit. If you initially deferred your pension benefit commencement, you must request enrollment in retiree health benefits within 31 days of your pension benefit commencement date. When you lose other group health coverage (through another employer or spouse). You must request enrollment within 60 days of the loss of other group health coverage. You will be eligible for retiree medical coverage if you retire directly from layoff status and you meet one of the following: You are age 55 or older and you have at least 10 years of vesting service. You are age 65 or older and you have at least 5 years of vesting service. You are at least age 50 but are younger than age 55 and you have at least 10 years of vesting service on your layoff date. In this case, you may retire directly from layoff status on or after the date you reach age 55 as long as you are within your layoff recall rights period. You are any age, but only if you are approved for total disability by Social Security, you retire from active employment because of total disability, and you have at least 10 years of vesting service. Note: You may request to enroll first in active medical COBRA coverage and defer enrolling in your retiree medical benefit until the COBRA coverage ends. If you choose this option, you must request to enroll in your retiree medical benefit within 60 days of your COBRA coverage ending. You will be eligible for retiree medical coverage if you retire directly from active status and you meet one of the following: You are age 55 or older and you have at least 10 years of vesting service. You are age 65 or older and you have at least 5 years of vesting service. You are any age, but only if you are approved for total disability by Social Security, you retire from active employment because of total disability, and you have at least 10 years of vesting service. Enrolling After You Leave Boeing Under certain circumstances, you may wish to defer enrollment in your retiree health benefits. If you don t enroll when you first retire from Boeing, there are other specific enrollment opportunities for you to be aware of. However, you must request enrollment within the allowable time specified to be eligible. You can elect retiree medical coverage when Your Boeing COBRA coverage is exhausted or you drop COBRA coverage due to a significant change in cost. In either of these situations, you must request enrollment within 60 days of the date that COBRA coverage ends. You commence your pension benefit. If you initially retired but deferred your pension benefit commencement, you must request enrollment in retiree health benefits within 31 days of your pension benefit commencement date. When you lose other group health coverage (through another employer or spouse). You must request enrollment within 60 days of the loss of other group health coverage. A84229 June 2007

4 Reason for Your Departure Benefit Dental coverage Spending accounts Basic life insurance AD&D insurance Supplemental life insurance Short-Term Disability Plan Survivor income coverage Vacation Sick leave Coverage as an active employee will end on the last day of the month in which you leave the Company. You and your eligible dependents then may be able to continue coverage through COBRA for up to 18 months by self-paying the required premiums. You will receive a COBRA notice automatically. You will have 60 days from the date you lost coverage to enroll in COBRA coverage. Contributions to your account(s) will stop when your regular pay ends. If you have a balance remaining in your accounts, you will be able to file claims For qualified dependent care expenses that you incur through the end of the calendar year. For qualified health care expenses that you incur through the end of the month in which your employment ends. In addition, you may continue to participate in the Health Care Spending Account Plan, under COBRA provisions, if you enroll. Your coverage will end on your last day of employment. You then will have 31 days to convert your coverage to an individual policy. Your coverage will end on the last day of employment. AD&D coverage cannot be converted to an individual policy. Your coverage will end on your last day of employment. You then will have 31 days to convert your active coverage to an individual policy. Your coverage will end on your last day of employment. Your coverage will end on your last day of employment. You may be eligible to convert to an individual policy if you request the conversion within 31 days. For more information on eligibility, contact the service representative listed in your summary plan description booklet. All accrued vacation will be paid. Sick leave will be paid according to your union contract provisions. 4 A84229 June 2007

5 Reason for Your Departure Benefit The Boeing Company Voluntary Investment Plan (VIP) ShareValue Trust You may leave your funds in the Plan until you are age 70 ½. Federal law requires that you begin taking required minimum distributions at age 70 ½; you can request a partial or total distribution. If you have money in the Boeing Stock Fund, you can request an in-kind distribution of part or all of your Boeing stock ( in-kind means receiving a stock certificate and maintaining ownership of the shares), request installment payments (scheduled monthly, quarterly, semi-annually, or annually), request a commercial period certain annuity (available to all participants terminating, retiring, or being laid off from the Company), or roll over your account to another qualified employer plan or IRA. In general, 20 percent will be withheld in Federal income taxes on the taxable portion of most distributions. Applicable state taxes may also be withheld; generally, if you are under age 59 ½ at the time of the distribution, an additional 10 percent early withdrawal penalty may apply. Please read the Special Tax Notice found on the Forms page of Boeing Savings Plans Online before you elect a distribution option. If you have a VIP loan, you must repay it before you request a total distribution or within 90 days after your termination date, whichever comes first. Otherwise, the balance will be treated as a taxable distribution. You will not be able to make new contributions to or request a loan from the Plan after you leave the Company. You may continue to make fund transfers or fund reallocations in your VIP account. The VIP summary plan description booklet is available on the Boeing Savings Plans Online web site (see section 3). Visit the Plan Information section of the site and choose the Plan Forms page. Notes: For information about any other Boeing savings plans, please contact the Boeing Savings Service Center through Boeing TotalAccess. (See section 3.) Tax consequences may vary depending on your circumstances and the options you choose. Please seek competent financial and tax planning advice. You will retain eligibility for a prorated distribution, based on the ratio of your months of participation (as an eligible employee on the active payroll before departure) to the 48 months in the remaining open investment period(s). You stop being credited with months of participation the first full calendar month you are no longer on the active payroll. You must wait until the end of an investment period before you will know if a distribution has resulted from that period. If there will be a distribution, you will be notified by mail at your home address on record with the Company. Recall Rights You will not be eligible for recall. Depending on your seniority with the Company, you will be eligible for recall for at least 2 years but no more than 5 years from the date you are laid off. Note: If you retire from layoff before the end of your recall period, you will lose your recall rights or seniority. You will not be eligible for recall. A84229 June 2007

6 Benefit Boeing North American Hourly Retirement Plan Note: IBT Local Nos. 578 and 952 and IUOE Local No. 501 are not eligible to participate in this Plan. Contact your union local for more information. See section 2 for pension eligibility criteria. Reason for Your Departure See section 2 for pension eligibility criteria. Note: If you are laid off and you are eligible to start your pension from layoff status, within your layoff recall rights period, you will be considered a Boeing (Boeing North American hourly) retiree, and you will be eligible for all pension-related benefits. 2. Eligibility Criteria for the Boeing North American Hourly Retirement Plan See section 2 for pension eligibility criteria. The following tables show if and when you are eligible for a pension benefit under the Boeing North American Retirement Plan for Eligible Employees on the Hourly Payroll. Eligibility for a pension benefit You can elect to retire from Boeing if you are... And your vested pension benefit will be... Age 65 or older and you have at least 5 years of vesting service Age 55 or older but not yet age 65, you have at least 10 years of vesting service, and you are not eligible for a supplement Age 60 or older but not yet age 62 and 2 months and you have at least 20 years of credited service (level income special allowance [LISA] supplement) Age 55 or older but not yet age 62 and 2 months and you have at least 30 years of credited service (30-and-out supplement) Age 55 or older but not yet age 60, you have fewer than 30 years of credited service, and the sum of your age (in years and months) and your credited service (in years and months) equals 85 or more (85-point supplement) Any age if you have at least 10 years of vesting service and are approved by Social Security for total disability Unreduced Reduced if you are younger than age 62 Unreduced Unreduced Reduced unless you qualify for the LISA supplement instead of the 85-point supplement Unreduced Notes: If you are laid off, you may retire under the same provisions as long as you meet the age and service requirements when you are laid off, and you are eligible to retire within your recall rights period. When you retire, if eligible, your retiree medical benefits become effective on the first of the month following the month after your termination date, but you have the option of deferring your pension payments and/or retiree medical benefits until a later date, up to age 65. See page 3 for more information. See the section titled Retiree medical coverage regarding the option of deferring your retiree medical benefits. A84229 June 2007

7 You will be eligible for a pension benefit at age 65 if you are... And your pension benefit will be... Younger than age 65 and you have at least 5 years but fewer than 10 years of pension vesting service at your termination date Payable at age 65 You will be considered a terminated vested participant; you will not be eligible for retiree medical coverage Ineligibility for a Pension Benefit If you have fewer than five years of vesting service at the time of your termination and you are younger than age 70½, you will not be eligible to receive any pension benefit from the Boeing North American Retirement Plan for Eligible Employees on the Hourly Payroll. When to Contact the Boeing Pension Service Center Call the service center as many as 90 days before (but no later than the 20th of the month before) the month in which you want your pension payments to start. You must have your BEMS ID number (or Social Security number) and Boeing TotalAccess password to request any pension information or an application to start your benefit payments. 3. Sources for More Information and Help Boeing Benefits Web Site Visit Employee Benefits on the World Wide Web ( Boeing TotalAccess Boeing TotalAccess connects you to the Boeing benefits service centers, including the Boeing Service Center for Health and Insurance Plans, the Boeing Pension Service Center, and the Boeing Savings Service Center. You must have your BEMS ID number (or Social Security number) and your Boeing TotalAccess password (except when you use the Boeing Web). Boeing Web: World Wide Web: Telephone: Hearing-impaired callers can access TTY/TDD services at Boeing TotalAccess representatives are available Monday through Friday from 7 a.m. to 8 p.m. Central time, except holidays. Automated telephone services are available 24 hours a day, every day. 7 A84229 June 2007

8 Once you reach the menu, For the Boeing Service Center for Health and Insurance Plans, say health and insurance. For the Boeing Savings Service Center, say savings. For the Boeing Pension Service Center, say pension. To request a new Boeing TotalAccess password or a password mailer, say password administration. ShareValue Trust ShareValue Trust information is available through Boeing TotalAccess on the Boeing Web or through the ShareValue Trust site on the World Wide Web ( Boeing Plan Administrator To request copies of official Plan documents, write to the Plan Administrator at The Boeing Company, 100 North Riverside, MC , Chicago, IL You will be charged a reasonable fee for the reproduction of the materials you request. If your benefits plan is administered by your union, please contact your local representative for Plan documents. 8 A84229 June 2007