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Retirees Corner 12/09

EXPLANATION: Last month I wrote about the VEBA with information updates but the section on “Payment Information” created more questions than it answered. I will try to simplify the payment information:

  • If you currently have your health care costs deducted from your pension check you do not need to do anything! It will automatically roll over to the VEBA on January 1, 2010.
  • If you are not sure that you currently pay by automatic deduction, check your stub from your pension payment on the left side it will show a deduction for medical either $11.00 or $23.00. That means your medical costs are deducted from your pension check. Again, you do not need to do anything.
  • If there is not a deduction for medical that means you are paying out of pocket. In January 2010, you will receive an invoice billing you for January and February 2010 and you will be billed for your monthly contribution on a monthly basis from then on.
  • If you want your health care costs taken from your pension check, you can do so by calling 1-800-489-4646 and select the “medical” prompt and enroll to have the medical costs taken from your pension check in the future.

COBRA OFFER: You will be receiving a notice from GM offering you COBRA medical coverage. You do not need to do anything. Your healthcare will automatically roll over to the UAW Retiree Medical Trust (aka VEBA), but read through it.

Included will be a COBRA offer for Dental and Vision coverage that will be cheaper than the current Delta Dental offer. If you retired before July 1, 2009, the offer will be a lifetime benefit. Those who retired July 1, 2009, the offer will be for 18 months only.

If you signed a contract with Delta Dental, under their current offer you will be allowed to drop the Delta Dental offer and take the COBRA offer without a penalty (Delta is currently saying you must enroll in their plan for one (1) year. If you sign up for the COBRA, call Delta Dental and tell them you are canceling.

This offer from COBRA should be coming to you in November 2009. Phone numbers to respond will be available on December 9, 2009, and you must respond within 60 days.

UAW RETIREE MEDICAL TRUST (VEBA): You should start to receive your Welcome letters in early November 2009. It contains all the phone numbers you will need and details on costs and future mailings.

  • Costs: monthly contributions will increase from $11.00 to $15.00 for single coverage and family coverage will go from $23.00 to $30.00
  • Those who are in “protected status” cost will increase from $11.00 to $15.00 for single and family coverage will be $15.00
  • Deductibles will increase by $6.00 to $170.00 for single and $340.00 for family
  • Out of pocket maximum will increase for in-network to $285.00 Single; $570.00 family
  • Out of pocket maximum will increase for out-of-network to $570.00 Single, $1140.00 Family

As required by law you will receive legal notices that require no action on your part.

  • Notice of credible coverage, if you are enrolled in Medicare.
  • COBRA notice for you and your dependents as a result of GM plan termination on December 31, 2009 (except for the Dental and Vision offers).
  • Summary of Material Modification (SPD).
  • HIPPA Certificate notifying you that your health care coverage from GM has ended.

LUMP SUM BONUS: Retirees whose benefits started before October 1, 2007 will receive a lump sum payment in December 2008, 2009 and 2010. If you have 30 or more years of credited service, you will receive $700 (around December 15th); if you have less than 30 years credited service, your lump sum will be $23.33 times your years of credited service with a minimum payment of $233.33 (10.0 years credited service). Those who retired October 1, 2007 or later will receive a base pension increase for the life of this agreement.

Surviving spouse will receive 65% of their spouse’s entitlement.

NEXT MEETING: The membership voted to suspend meetings until March 2010 and to move our meetings to Antone’s Banquet Center located at the corner of Market St and Western Reserve Rd in Boardman (not Mr. Anthony’s). This will happen in March 2010. I will give directions in both my January and February article. The quality of the hall and food will be far better than the Metroplex.