Pipe Fitters' Welfare Fund, Local 597 (News & Announcements)

The Board has established a policy of adjusting the Retiree self-pay amounts (premiums) every January 1. Retiree premiums are based on a percentage of the full, active employee COBRA rate. For a person eligible for Medicare, the premium is 9% of the full, active employee COBRA rate. For a person not eligible for Medicare, the Standard Retiree Premium is 15% of the full, active employee COBRA rate. Because the COBRA rates have increased, the Standard Retiree Premiums were adjusted effective January 1, 2010. Separate rates also apply to disability retirees under age 60 who are substantially employed as well as to retirees who are working in the pipe fitting industry in "non-covered" employment. The old and new monthly rates are as follows.

	Previous Rates	Rates Effective January 1, 2010
Retiree eligible for Medicare	$84	$88
Retiree not eligible for Medicare	$140	$146

Retiree eligible for Medicare(working in related employment)	$168	$176
Retiree not eligible for Medicare(working in related employment)	$280	$292

Retiree on Disability Pension earning over $24,000 a year	$233	$243.50

If you have any questions or if I can be of further assistance please contact me.

The Trustees are pleased to announce that Pension Retirees will now receive a tax-free payment of up to $50.00 times the number of Pension Years you have accumulated for reimbursement of certain medical expenses from the Welfare Fund.

There will be two different programs – one for Retired Employees eligible for Retired Employee Coverage and one for Retirees who are not eligible for coverage from the Welfare Plan. Below you will find details of the program for Retirees eligible for Retired Employee Coverage. Retirees that are not eligible will receive more information later this year.

For Retirees eligible for Retired Employee Coverage from the Welfare Plan, the Fund Office will first determine how much will be added to your Health Reimbursement Arrangement account (HRA). The amount added to your HRA is calculated by multiplying $50.00 x your Pension Years (subject to a maximum of no more than 200% of your monthly pension benefit). That amount is then credited to your HRA.

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If Bob has 15 Pension Years and his monthly pension benefit is $1,000.00 then on October 31 of each year, his account would be credited with $750.00 ($50 x 15). Alternatively, if Bob had 15 Pension Years and his monthly pension benefit is $300.00, then on October 31 of each year, his account would be credited with $600.00 (instead of the $750.00 in the first example) because his allocation is capped at 200% of his monthly pension benefit.

If you are eligible for Retired Employee Coverage from the Welfare Plan, the Fund Office will calculate the total amount you spent for certain medical expenses throughout the Reimbursement Period (generally the Reimbursement Period runs from November 1 – October 31). These expenses include: 1) retiree self-pay premiums under the Plan; 2) Medicare Part B premiums; 3) the portion of the Medicare Part A deductible not paid by the Plan; 4) Prescription Drug Co-payments and Deductibles under this Plan; and 5) Major Medical Co-payments and Deductibles under the Plan.

If your total Reimbursement Expenses are equal to or more than the amount in your HRA, the Welfare Fund Office will send you a check for the entire HRA balance. If the expenses total less than the HRA balance, the Fund Office will issue you a check in the total amount of the expenses. The remaining HRA balance will roll over to the next Reimbursement Period.

If there is a balance in your account when you die, the Fund Office will have procedures for allowing you surviving spouse or dependents a death benefit payment equal to the account balance. This is in addition to the Welfare Plan’s $5,000 retiree death benefit.

A similar reimbursement program for Retired Employees who are not eligible for Retired Employee Coverage under the Welfare Plan will be provided. However, for the retirees not covered under the Local 597 Welfare Fund, there will be a requirement of an annual application to the Fund for reimbursement.

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