Sheet Metal Workers’ Local 73 Welfare Fund
Announcement Letter for Changes Effective March 1, 2005

December 2004

Dear Retired Participant and Eligible Dependents:

As Trustees, we value your years of service and are proud that the Welfare Fund has been able to offer retiree health care coverage. One of our main responsibilities is providing benefits that meet your needs today, while ensuring that the Welfare Fund remains financially stable in years to come. Each year, the Board of Trustees reviews the actual cost of providing retiree and surviving spouse coverage based on the Welfare Fund’s claims experience to help determine if changes are needed to the monthly self-payment 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 coverage has increased significantly, yet we have not increased the rates for retirees or surviving spouses in ten years. We now need to increase the monthly self-payment rates for current retirees and surviving spouses effective March 1, 2005. Future rates will be based on the cost of the Plan. We realize that retirees are on a fixed income; therefore, the Welfare Fund will continue to subsidize a portion of the cost for retiree and surviving spouse coverage with contributions from our active members.

The rates shown in the following table vary based on your age. 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.

If you are a retiree or surviving spouse before March 1, 2005, your monthly self payment rate beginning on March 1, 2005, will be as follows:

* Future rates will be based on the cost of the plan.

Your self-payment is due by the first of each month. If the Welfare Fund does not receive the required payment, your eligibility will end and your coverage will terminate with no right of reinstatement.

We believe these changes will strengthen the Welfare Fund’s financial position and continue to allow us to provide you and your family with quality health care. If you have any questions, please contact the Welfare Fund Office at 1-708-449-7373.

Sincerely,

Board of Trustees
Sheet Metal Workers’ Local 73
Welfare Fund