Sheet Metal Workers' International Association
Local Union No.73
Pension Welfare and Annuity Funds
Sheet Metal Workers’ Local 73 Welfare Fund
Announcement Letter for Changes Effective March 1, 2005
December 2004
Dear Active Participant and Eligible Dependents:
The Trustees are proud that the Welfare Fund offers a comprehensive benefits program not only for active participants and their families, but for retired participants as well. Each year, the Board of Trustees reviews the actual cost of providing retiree coverage based on the Welfare Fund’s claims experience to help determine if changes are needed to retiree monthly self-pay rates. As Trustees of your Welfare Fund, we have strived to present a plan of benefits that is fair to both the Active and Retired members and their eligible dependents. Due to increasing medical and prescription drug costs, the cost of providing retiree coverage has increased significantly. As a result, the method for calculating monthly self-payment rates is changing:
Participants who Retire Before March 1, 2005
Participants who choose to retire before March 1, 2005 will have the option of retiring so that their monthly premium for health and welfare coverage will be based on their age only, which is the method that is currently used to calculate monthly premium amounts. We realize that retirees are on a fixed income; therefore, the Welfare Fund will continue to subsidize a portion of the cost for retiree coverage with contributions from our active participants. If you are a retiree or surviving spouse before March 1, 2005 your monthly self payment rate effective March 1, 2005 will be as follows:
Monthly Self-Payment Rates If You Are a Retiree or Surviving Spouse Before March 1, 2005 |
|
If on March 1, 2005, You Are . . . |
Your Single Monthly Self-Payment Is* . . . |
Less than age 60 |
$287 |
At least age 60 but less than age 62 |
$262 |
At least age 62 but less than age 65 |
$175 |
Over Age 65 Without A Premium Subsidy |
$164 |
Over Age 65 With A Premium Subsidy |
$105 |
* Future rates will be based on the cost of the plan.
The monthly self-payment rates decrease as you age and will be based on your age as of March 1 st of the Calendar Year. For example, if you retired at age 55, your rate will decrease on March 1 st following the Calendar Year in which you turn age 60, again on March 1 st following the Calendar Year in which you reach age 62, and finally when you reach age 65.
Participants who Retire On or After March 1, 2005
If you retire on or after March 1, 2005, the new monthly self-payment rates are based on your age and pension credits at the time you retire. Participants who have worked and contributed to the Welfare Fund the longest will pay the lowest monthly self-payment rates. See the Appendix attached to this letter for information on the new self-payment rate structure for participants that retire on or after March 1, 2005. Future rates and benefits will be based on the cost of the plan.
We believe these changes will strengthen the Welfare Fund’s financial position and continue to allow us to provide active and retired participants with quality health care. As always, if you have any questions, please contact the Welfare Fund Office at
708-449-7373.
Sincerely,
Board of Trustees
Sheet Metal Workers’ Local 73
Welfare Fund
Appendix A
Monthly Self Payment Rates For Participants
Retiring On or After March 1, 2005
Single Coverage
Years of Service |
Age |
Age |
Age |
Age 65 |
Age 65 |
35 + |
$287.00 |
$262.00 |
$175.00 |
$105.00 |
$164.00 |
34 |
$298.00 |
$273.00 |
$188.00 |
$109.00 |
$168.00 |
33 |
$309.00 |
$284.00 |
$201.00 |
$113.00 |
$172.00 |
32 |
$320.00 |
$295.00 |
$214.00 |
$117.00 |
$176.00 |
31 |
$331.00 |
$306.00 |
$227.00 |
$121.00 |
$180.00 |
30 |
$342.00 |
$317.00 |
$240.00 |
$125.00 |
$184.00 |
29 |
$353.00 |
$328.00 |
$253.00 |
$129.00 |
$188.00 |
28 |
$364.00 |
$339.00 |
$266.00 |
$133.00 |
$192.00 |
27 |
$375.00 |
$350.00 |
$279.00 |
$137.00 |
$196.00 |
26 |
$386.00 |
$361.00 |
$292.00 |
$141.00 |
$200.00 |
25 |
$397.00 |
$372.00 |
$305.00 |
$145.00 |
$204.00 |
24 |
$408.00 |
$383.00 |
$318.00 |
$149.00 |
$208.00 |
23 |
$419.00 |
$394.00 |
$331.00 |
$153.00 |
$212.00 |
22 |
$430.00 |
$405.00 |
$344.00 |
$157.00 |
$216.00 |
21 |
$441.00 |
$416.00 |
$357.00 |
$161.00 |
$220.00 |
20 |
$452.00 |
$427.00 |
$370.00 |
$165.00 |
$224.00 |
19 |
$463.00 |
$438.00 |
$383.00 |
$169.00 |
$228.00 |
18 |
$474.00 |
$449.00 |
$396.00 |
$173.00 |
$232.00 |
17 |
$485.00 |
$460.00 |
$409.00 |
$177.00 |
$236.00 |
16 |
$496.00 |
$471.00 |
$422.00 |
$181.00 |
$240.00 |
15 |
$507.00 |
$482.00 |
$435.00 |
$185.00 |
$244.00 |
14 |
$518.00 |
$493.00 |
$448.00 |
$189.00 |
$248.00 |
13 |
$529.00 |
$504.00 |
$461.00 |
$193.00 |
$252.00 |
12 |
$540.00 |
$515.00 |
$474.00 |
$197.00 |
$256.00 |
11 |
$551.00 |
$526.00 |
$487.00 |
$201.00 |
$260.00 |
10 |
$562.00 |
$537.00 |
$500.00 |
$205.00 |
$264.00 |
Notes:
- Family rates are 2 times the above rates if you and your spouse are both under age 65, or if you and your spouse are both over age 65.
- Age categories are based on the Retiree’s age as of the Retirement Date.
- The monthly rate for you and your spouse where 1 individual is over 65 (Medicare) and 1 is under 65 (Non-Medicare) is $265.00 per month.
- The monthly self-payment rates decrease as you age and will be based on your age as of March 1 st of the Calendar Year. For example, if you retired at age 55, your rate will decrease on March 1 st following the Calendar Year in which you turn age 60, again on March 1 st following the Calendar Year in which you reach age 62, and finally when you reach age 65.
- Future rates will be based on plan costs.