RETIREE CONTRACT CHANGES

Dear Brothers and Sisters:

A tentative agreement was reached on October 15, 2005, concerning the restructuring of health care costs for retirees and active hourly workers of General Motors.

First, the active hourly will give up $1.00 per hour in future COLA (Cost of Living Allowance) and GWI (General Wage Increase) and General Motors will pay $1 billion in 2006 and 2007 to establish a Voluntary Employee Benefit Agreement (VEBA) to defray some of the cost increases to retirees for monthly contributions, deductibles and co-insurance.

Any retiree or surviving spouse whose GM Pension benefit is $8,000/year or less will not be affected by these changes. They will stay under the current plan. This eliminates 74,000 retirees and surviving spouses from the changes.
There will be monthly contributions of $10 per individual and $21 for family coverage (two or more constitutes a family).
Yearly deductible of $150/individual and $300/family.
Once the deductibles are met, there will be a co-insurance charge of $100 / individual and $200/family.
Prescription Drugs:

Retail -$5.00 generic; $10 name-brand; $15 erectile dysfunction drugs.
Mail-Order (90-day supply) $10 generic; $15 name-brand; $18 erectile dysfunction drugs.

Emergency Room - $50 Fee

Fraternally,

Jim Graham, President
UAW Local 1112

Bill Bowers, Chairman
Retirees’ Chapter
UAW Local 1112

NOTE: INFORMATIONAL MEETING(S) SCHEDULED AT UAW LOCAL 1112- THURSDAY, NOVEMBER 3, 2005 (YOUR LAST NAME STARTS LETTERS A-K) & FRIDAY, NOVEMBER 4, 2005 (YOUR LAST NAME STARTS LETTERS L-Z). TIME: 10:00 A.M.