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USW Local 2-232 formerly PACE 7-232
Members are urged to Attend this Meeting.
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Retiree insurance highlightsA question at the January membership meeting led to members asking that insurance benefits for retirees be explained in the paper. The biggest area of confusion is about insurance for members who retire after 30 years of service under the special early retirement. Members who retired prior to 1993 had company paid insurance (health, vision & dental) until the member reaches age 65. Members retiring under the special early retirement after 1992 will also have company paid health, dental and vision insurance until the member reaches age 65. However, after 10 years, the company will only pay the amount toward the premium that they are paying at that time for active employees at that time, until the member reaches age 65. Members that retired after 1992 are offered the same insurance as is offered for current employees. Member that retired that retired prior to 1993 maintain the same benefit level that they had at the time of retirement. At the present time, Briggs pays $175.64 toward a single plan, $351.28 toward an employee & spouse or employee and children and $526.92 toward a family plan. Strattec pays 80% of the total premium. If a retiree under age 65 had been retired more than 10 years that amount will be contributed toward the cost of the member's health insurance. At Briggs the retirees are in a separate group, so the total premium is higher than for active employees. At Strattec the rates are currently the same for active members and retirees in the EPO plan, but the retirees are rated separately in the self-insured PPO plan. Some members had the mistaken idea that after 10 years they would be required to pay the full cost of health insurance. When a retiree reaches age 65 and becomes eligible for Medicare, they may purchase a supplemental policy at the group rate if they so choose. This policy may also provide insurance for spouses or dependents over or under age 65. This insurance is becoming increasingly expensive, but it does include the same prescription drug coverage as for active members. Many other Medicare supplement plans do not offer prescription coverage. The retiree pays the full cost of this health insurance. Dental and vision insurance are not available after the retiree reaches age 65. Members who retire under the early retirement (age 55 and 10 years of service) may choose to purchase health insurance at the group rate. This is offered only at the time of retirement. If the member declines at that time, they may not purchase the insurance at a later time. This is for health insurance only. Members who retire with a total and permanent disability will receive company paid health insurance until age 65. |
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