Benefits/Contract Matters

Contract Joint Efforts Coordinator Randy Virgin

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. 

What Health Care Reform means for Steelworkers______________________

President Obama has signed historic health insurance reform legislation, a major bill that will help most Americans have health care.

We've put together a fact sheet to help lay out the facts and explain the immediate and longer-term impact. We'll pass along more information as soon as we get it.

Many members are reporting that employers or insurance companies are threatening workers with rate hikes, plan changes and other things because of reform. DON'T LET THEM BULLY YOU. Arm yourself with the facts and stay in touch with your union.

Here are some highlights of what reform means right now for union-negotiated plans and VEBAs:

• You will NOT lose your union-negotiated private health insurance plans because of reform. Nothing in this bill changes our right to collectively bargain health plans and employers cannot drop existing plans because of reform;

• Current collectively bargained plans are grandfathered, meaning much of the new law does not apply to those plans until after they expire;We will NOT let employers or insurance companies use reform as an excuse to bully us into unnecessarily expensive premium hikes. Don't let them threaten or intimidate and keep our members informed to combat this;

• NO high-cost benefits will be taxed under provisions in the Senate reconciliation or "fixes" bill until at least 2018, and the impact of the tax on insurers should be lessened through a variety of changes and exemptions;

Here’s what we can tell you now regarding our USS Plan:

The United Steelworkers Health and Welfare Fund Executive Director has contacted Coordinators and informed us that our current collectively bargained plan is, for the most part, grandfathered from the new law’s provisions until after our next round of bargaining.  No changes to our plan are required to take place immediately.  The earliest any plan changes would apply is January 1, 2011. 

Discussions between the International and USS will be forthcoming as to the interpretation and application of those provisions of the new health care law that are not grandfathered from implementation. Members will be informed as these discussions take place and more is learned regarding the impact that the legislation will have on our health care plan.

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Our Hopes, Our Struggle, Our Fight

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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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What to do when you’re ready to retire:

We now have an agreement, reached during 2008 contract negotiations by your Local Benefits Negotiating Committee, that allows for Union representation when members finalize retirement.

Here’s all you do: Call 452-1899, ext. 27 during regular business hours at least 2 weeks prior to your last day of work.  You will need a determined retirement date if you are going to request a retirement application. 

We'll then contact the Steelworkers pension Trust (SPT) and ask that they send you a pension application.  This takes between 5 to 7 days to process and receive in the mail. 

Randy Virgin will set up a joint meeting with USS Benefits to finalize with the Company for the purposes of retirement health and life insurance.  

Once you receive your application, if you have questions or if you would like a meeting to go through the forms and application, you can schedule an appointment (452-1899 ext. 27).

"You’ve earned your retirement... and your Union

wants to make it easy for you to enjoy!"

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Social Security Earnings Information:

How much can you earn and still get benefits?

If you were born January 2, 1943, through January 1, 1955, then your full retirement age for retirement insurance benefits is 66. If you work and are full retirement age or older, you may keep all of your benefits, no matter how much you earn. If you are younger than full retirement age, there is a limit to how much you can earn and still receive full Social Security benefits. If you are younger than full retirement age during all of 2010, we must deduct $1 from your benefits for each $2 you earned above $14,160.

If you reach full retirement age during 2010, we must deduct $1 from your benefits for each $3 you earn above $37,680 until the month you reach full retirement age.

These examples show how the rules would affect you:

Let us say that you begin receiving Social Security benefits at age 62 in January 2010 and your payment is $600 per month ($7,200 for the year). During the year, you work and earn $20,480 ($6,320 above the $14,160 limit). We would withhold $3,160 of your Social Security benefits ($1 for every $2 you earn over the limit). To do this, we would withhold all benefit payments from January 2010 to June 2010. Beginning in July 2010, you would receive your $600 benefit and this amount would be paid to you each month for the remainder of the year. In January 2011, we will pay you the additional $440 we withheld in June 2010.

Or, let us say you were not yet full retirement age at the beginning of the year, but reach it in November 2010. You earned $39,000 in the 10 months from January through October. During this period, we would withhold $440 ($1 for every $3 you earn above the $37,680 limit). To do this, we would withhold your first check of the year. Beginning in February 2010, you will receive your $600 benefit, and this amount will be paid to you each month for the remainder of the year. We would pay you the remaining $160 dollars in January 2011.

Your earnings and your benefits—how much will you get?

The following table gives you an idea of how much you will receive in Social Security benefits for the year 2010, based on your monthly benefits and estimated earnings.

For people younger than full retirement age during the whole year
If your monthly Social Security benefit is	And you earn	You will receive yearly benefits of
$700	$14,160 or less	$8.400
$700	$15,000	$7,980
$700	$20,000	$5,480
$900	$14,160 or less	$10,800
$900	$15,000	$10,380
$900	$20,000	$7,880
$1,100	$14,160 or less	$13,200
$1,100	$15,000	$12,780
$1,100	$20,000	$10,280

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Don’t Forget:  Working Spouse Benefit Reimbursement

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 (USS) will be reduced as though enrollment in the other employer’s plan had occurred.

Members should note 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 30^th 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.

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

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Pension Benefit Guarantee Corp Link:

PBGC Pension Benefit Guarantee Corporation

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COBRA Insurance Link:

http://www.dol.gov/COBRA/

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People Resources [EAP] Link:

©People Resources Inc.

www.worklifetools.com

1-800-765-9124

DO YOU HAVE QUESTIONS ABOUT RETIREMENT?

Need help applying for your pension or completing your retirement application and forms?  Answers and assistance are just a phone call away.  Call 618-452-1899, Ext. 27.  You can get help over the phone or schedule a personal appointment. 

"You’ve earned your retirement... and your Union

wants to make it easy for you to enjoy!" 

SOAR Chapter 7-34-2 President Jeff Rains

Interested in joining SOAR? 

SOAR was established in 1985 to organically link the USW’s active members with those in retirement so that both can work on common problems.

SOAR has proved to be a true partner of our active membership in the pursuit of economic security.

In recognition of this partnership the delegates to the 30th International Convention voted unanimously to add an amendment to the USW Constitution recognizing SOAR as an affiliate organization of the USW. The amendment also encourages the formation of SOAR chapters, establishes direct communication between the local union and the chapter and gives SOAR chapter leaders input into negotiations on retiree issues.

Until SOAR came along, there was no strong advocate to focus attention on the special problems and needs faced by USW pensioners and their spouses.

SOAR made these problems very visible and helped fashion USW policy to deal with them. Our relationship with the United Steelworkers is based on shared values

The major purpose of SOAR is to deal with the Social, Economic, Educational, Legislative and Political developments and concerns of its members and spouses. We fight for the preservation of Social Security, Medicare, for better health care protection, as well as for federal laws to better serve the elderly.

Membership Information:

Local 1899 will pay retiree's and spouse 1st year membership fee!  So join for FREE! 

Sign up for SOAR Chapter Membership today - Only $1 a month

Soar provides a way for retired members of the USW and their spouses to remain a part of one of the most respected and effective organizations in America

Thousands of Steelworkers retirees have said they want to continue to be involved actively with their union. Now the United Steelworkers have created a way for you to remain active through SOAR.  Now, due to recent action of the SOAR Executive Board, all retired members of the USW are granted membership into SOAR.  This will enable both the USW and SOAR to better communicate with all retired Steelworkers.

The best way for retired members to remain truly active and involved remains becoming a member of a SOAR Chapter.  SOAR Chapter membership provides USW retirees and their spouses with a vehicle for continued social interaction with their friends and co-workers.   The SOAR Chapters also serve as the focal point of legislative and political activity on behalf of all USW members, both retired and active.  SOAR Chapter members also receive a variety of other benefits including:

Their own newsletter (mailed in conjunction with Steelabor in the U.S.) which specifically addresses the issues and concerns of retired workers.  This is mailed four times a year.

• A SOAR Chapter membership card.
• A new member kit that contains a very attractive SOAR lapel pin and informational pamphlets related to retiree issues.
• Access to the AFL-CIO Union Benefit Program.
• Instant updates on issues and events through the Chapter Rapid Response Program.
• The opportunity to continue to be involved and make a difference on issues of importance to retired workers and their families.

How can you become a SOAR Chapter member?

You need only to Print out this page and complete the application below. 
The dues are $12.00 per year for a retired USW member and $3.00 per year
for a surviving spouse or widower of a USW retiree.

JOIN TODAY

Amount Enclosed.........FIRST YEAR FREE!

Name......................................................................

Home Phone (........)..................................

Address...................................................................

City................................................................... State.......................

 Zip..................................

E-mail Address ..................................................................................

Former Local Union Number............... USW District Number.............

Chapter Number (if known)..........

Former Employer......................................................................................

Do you receive Steel Labor Yes.........No......

SOAR dues: Retirees $12.00 per year.........Spouse $3.00 per year.........

Name of Spouse.......................................

When you complete the application, please return it to:
SOAR,
United Steelworkers,
Five Gateway Center,
Room 701
Pittsburgh, PA. 15222

Helpful websites for SOAR members.

• Medicare
• Social Security
• Centers for Medicare and Medicaid Services
• Internal Revenue Service
• Environmental Protection Agency: Aging Intiative
• Financial Advocate