LOCAL UNION 1899 - GRANITE CITY, IL
Benefits/Contract Matters
Contract Joint Efforts Coordinator Randy Virgin
GHP HMO Notifies Active Member of Service Area Restriction
The Union has heard from one active member who was notified by the plan this week that he lived outside of the GHP HMO service area; that as such he would be unable to continue HMO coverage and would have to switch to the Company PPO plan. You will recall that the limited service area has applied in the past to only retirees. This seems to indicate a change in policy for the HMO plan. Remember this is a private, alternative health insurance plan, not negotiated by the Union and not governed by the PIB (Program of Insurance Benefits). The Local has been in contact with Corporate Benefits and as of now we are being told the service area restriction does apply to active employees; that this is not a change and that it always has. News to us! Watch for more information on this matter as things develop.
Company Attempts to Determine SPT Eligibility
Since becoming members in the Steelworkers Pension Trust (SPT) pension plan in May of 2003, we’ve been informed time and again that, unlike the USS Carnegie Pension Plan in place at the “original” USS Plants, such as Gary Works, the plan was not U. S. Steel’s. We were told the SPT was a totally separate entity from USS (which it is), that all the Company does is make contributions to the plan on members’ behalf and that it is not administered by them. In fact, the Company’s policy is that even though a member may be completely eligible for and receiving a monthly pension benefit from the SPT, unless the member is entitled to retiree heath care coverage provided by the Company, the member is not a U. S. Steel retiree. So you could be 65 years old and retire with a full SPT pension benefit but if you had less than 15 years service (combined) to meet insurance eligibility, in the eyes of U. S. Steel you are not a U. S. Steel retiree!
That being the case, it’s odd to say the least, that recently on two separate occasions the Company attempted to claim members were ineligible for a Rule-of-85 Retirement. Remember Rule-of -85 Retirement is an unreduced full retirement benefit available to members whose age and service equals 85 or more. In one case, the member was persuaded to sign a letter of resignation because he was told he was ineligible to retire. Fortunately, in both instances the Union stepped in and prevailed in having the members retire under the Rule-of-85 with full benefits.
The problem in the Company trying to decide such eligibility is that it truly isn’t their plan; they do not administer it and obviously are not fully aware of the plan’s many requirements and stipulations. For example, for Rule-of-85 Retirement, the years of Covered Service that count in making this calculation are those calendar years in which there were at least five (5) months for which contributions were paid to the plan on the vested participant’s behalf. That means a member may not necessarily need to work up to their actual service anniversary or “hire in-seniority” date to receive a full year’s vesting credit. In both of the instances sighted above, that was indeed the case. So while the members had not yet reached their actual service anniversary – the Company was under the assumption they needed to work several additional months – each had already accrued enough vesting credits to satisfy eligibility for the Rule-of-85 Retirement per the Steelworkers Pension Trust.
When you have finally achieved retirement eligibility, having worked 20, 30, or more years in the environment of an integrated steel mill, you have certainly earned and are entitled to your pension! It is recommended that members considering retirement contact and consult their Local Union. We can assist you every step of the way through the application process. Local 1899, 68 and 50 members should call 618-452-1899, Ext. 27 for pension advise, information and assistance.
Joint Benefits Committee Making a Difference
The USW/USS Joint Benefits Committee, resulting from the 2008 contract negotiations, has been successful in reaching resolution by the parties in benefit matters throughout
U. S. Steel. The purpose in the creation of the Joint Committee was to find agreement in issues regarding insurance and retirement benefits short of appeal and possible grievance and arbitration.
The efforts of USS Insurance Administration Representatives and Union Contract Joint Efforts Coordinators have settled issues ranging from prescription drug and heath insurance coverage to retirement application and eligibility. Here locally, denied insurance claims – one in excess of $20,000 – have been reconciled in full in favor of members as well as agreement reached as to medical facility discharge and treatment of plan participants.
In addition the parties have attempted to resolve insurance matters docketed for arbitration so as to allow other pressing issues to be brought forward. In all, the committee continues to make progress on a daily basis in this area which is so important to members and their families. We look to build on this success in the New Year.
Locals in Process of Setting SPT Info Meeting
The Locals have asked that a representative from the Steelworkers Pension Trust (SPT) come and report on the significance of the amortization extension for which the Trust has recently filed. The mailing regarding the filing has generated many questions concerning the action and the plan’s general financial status. We are presently trying to schedule an informational meeting for February. Members should watch for special meeting notices.
Working Spouse Benefit
If your spouse is offered health insurance by her/his employer (other than U. S. Steel or its subsidiaries), and that employer pays any part of the cost, your spouse must take the insurance as her/his primary carrier. Whether or not your spouse enrolls in the “other plan”, the health care benefits payable under the Program will be reduced as though enrollment in the other employer’s plan had occurred.
Any spouse who is required to pay premiums for such coverage in excess of $50 per month will be reimbursed by the Company for such excess up to a maximum benefit of $350 per month on a quarterly basis upon proper application by the employee of a form provided by the Company. You may file for reimbursement on a quarterly basis. However, to be eligible for payment, any claim for reimbursement must be filed by June 30th of the year following the year in which the premiums apply. If eligible, you will be notified by mail when to approximately expect your reimbursement, which will be included on one of your pay checks. For example, if your spouse is required to pay $100 per month for her/his health insurance, the Company will reimburse you $50 (the excess over $50) per month on a quarterly basis after you file for reimbursement.
Waiver of Medical Coverage (New Option)
If you waive medical coverage under the Program and certify that you have health coverage under your spouse’s or previous employer’s plan, excluding a plan to which the Company contributes, you will receive a $300 monthly Opt-Out Allowance in your paycheck. If you waive coverage, but do not certify that you have coverage under your spouse’s or previous employer’s plan, you are not eligible to receive the $300 monthly Opt-Out Allowance. You will be required to re-certify your eligibility for the Opt-Out Allowance periodically during the year.
Please note: If you waive medical coverage, you are not eligible to receive Working Spouse Reimbursement.
Unemployment Claim Information
Illinois Department of Employment Security Representatives explained how Unemployment Benefits will be administered for members who are once again laid off after having filed a previous unemployment claim. The “benefit year” is a rolling 12 month period beginning with the month in which your original claim was first filed. Once you exhaust the 12 month benefit year period, you must file a new claim and serve a new waiting week. If you currently still have an open claim – meaning you have not exhausted your “benefit year’ – you simply need to “reopen” your unemployment claim and no new waiting week is necessary. Remember during a waiting week you receive your applicable full SUB pay percentage for that week to make up for the loss of UE Benefits.
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Steelworkers Pension Trust (SPT) Pension Information
The SPT is our present pension plan under U. S. Steel. The Company pays into the plan by contributing $2.65 (an increase from $1.80 in the previous contract) for each hour worked.
There are 4 types of retirement options:
__________________Early Retirement – Benefit Reduction___________________
Retirement (once vested) as early as age 55 with a ¼% reduction of benefit for every month retirement is taken prior to age 65. There is no retirement health insurance available to retiree.
_________________________Rule-of-85 Retirement________________________
Retirement with full benefit (same as if member was age 65). Member’s age and years of continued service (National and USS) must total 85 or more. Retirement health insurance is available at normal premium rate with a minimum of 15 years of continuous service.
__________________________Normal Retirement__________________________
Retirement at age 65 with full benefit. Retirement health insurance is available at normal premium rate.
_________________________Disability Retirement_________________________
Participant is eligible for retirement benefit regardless of age upon becoming disabled within the meaning of the Federal Social Security Act. There is no reduction of the retirement benefit. Retirement health insurance is available if member has a minimum of 15 years of service (National and USS). The first 18 months of insurance premiums are paid by the Company (for the retiree only).
Retirement Special Payment
Members considering retirement should be aware of a new benefit negotiated by your Union effective January 2009 that provides for payment of a one-time $7,500 special retirement payment if:
1) Member retires after attaining age 60, and
2) Member retires before the end of the current 2008 Basic Labor Agreement
The payment should be made no later than the end of the month following the in which the member retires.
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New Benefit Option at Retirement
Sisters and Brothers should be aware of a new agreement achieved during 2008 contract negotiations by your Local Benefits Negotiating Committee that allows for Union representation when members finalize retirement. Per the understanding reached by the parties, the Company will afford members a joint meeting with representatives of the Union and the Company to discuss benefit and retirement information.
Once you schedule a date to sign retirement papers, contact Randy Virgin at 618-452-1899, ext. 27 in order to take advantage of this Union negotiated benefit.
Sickness and Accident [S&A] Benefits Increased
Under provisions of the 2008 Program of Insurance Benefits (PIB) the weekly S&A benefit amount has been increased. The amount a member is now eligible for is equal to 70% of the weekly Base Rate of Pay for the member’s incumbent job with a minimum weekly benefit of $500. This increase is not applicable to claims initiated prior to the effective date of the new Basic Labor Agreement.
Improved Insurance Continuation Langauge
Members should be aware of the improved insurance continuation provision at time of discharge negotiated by your Benefits Bargaining Committee in 2008.
No longer is your insurance coverage immediately terminated if the Company discharges you. The new Program of Insurance Benefits (PIB) language provides for the continuation of coverage, except Sickness and Accident (S&A) Benefits, during the time in which a discharge is being pursued through the Grievance and Arbitration process. In the event the Company prevails in Arbitration, coverage is terminated as of the Arbitration decisions, at which time COBRA coverage will be offered to the employee.
Continuous Service Defined
With members experiencing layoffs once again questions have been raised regarding Continuous Service. Below is language from the Basic Labor Agreement which defines Continuous Service as related to layoffs(Note Line 6 provides for a period longer than 2 years based on employees service).
Continuous Service (including Company Service and Plant Service) shall only be broken if an Employee:
1.quits;
2. retires;
3. is discharged for cause;
4. if on layoff, fails to report to the Employment Office within ten (10) days of registered mail notice;
5. is absent in excess of two (2) years, except as such longer period is provided for in paragraphs (6) and (7) below;
6. is absent because of layoff (including a layoff due to a permanent closure) or non-occupational physical disability for a period longer than the lesser of his/her length of Continuous Service at the commencement of such absence or five (5) years.
Illinois Dept. of Employment Security Link:
Illinois Department of Employment Security_________________________________________
Pension Benefit Guarantee Corp Link:
PBGC Pension Benefit Guarantee Corporation_________________________________________
COBRA Insurance Link:
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People Resources [EAP] Link:
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1-800-765-9124
