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Back | 2003 Health Benefit Agreement |
Side Letters |
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SECTION 5 - SIDE LETTERS The 2002 National Agreement is amended by adding Side Letter Nos. 4 through 10, attached hereto. SIGNED AT WASHINGTON, D.C. THIS 6TH DAY OF NOVEMBER, 2003. November 6,2003 Mr. Byron A. Boyd, Jr. Dear Mr. Boyd: This confirms our understanding with respect to Document "A" of the Agreement of this date (Agreement). For the purpose of computation and application of the employee cost-sharing provisions contained in Article IV, Part €3 of the Agreement, for periods beginning on or after July 1, 2005, the payment rate used shall (i) be based on the costs of the National Railway Carriers and United Transportation Union Health and Welfare Plan ("NRC/UTU Plan"), and (ii) be established for a calendar year on or before December 31 of the immediately preceding year and may be changed during such calendar year only if additional contributions are needed to fund NRC/UTU Plan benefits and expenses that must be paid during such year. Please acknowledge your agreement by signing your name in the space provided below.
November 6,2003 Mr. Byron A. Boyd,
Jr. Pear Mr. Boyd: This confirms our understanding with respect to Document "A" of the Agreement of this date. In any month beginning November 1, 2003 in which an active employee receives his or her FO healthcare benefits from a Hospital Association and not from the NRC/UTU Plan and makes a Plan contribution pursuant to Article IV, Part B, Section 1, then, at the carrier’s option, either: (1) Such employee’s monthly "cost-sharing contribution amount" referred to in Article IV, Part €3 Section 1 shall be reduced by the Reduction Factor; or (2) The carrier shall pay the Hospital Association each month an amount equal to the Reduction Factor, provided that the Hospital Association that receives such payment has agreed to decrease the employee’s dues by the same amount. For purposes of this Side Letter, the term "Reduction Factor" means with respect to any given month, the smallest of: (i) the monthly dues amount in effect on January 1, 2003 that was established by the Hospital Association for payment by an active employee, (ii) the "cost-sharing contribution amount" for the month referred to in Article IV, Part B, Section 1, or (iii) the monthly dues amount established by the Hospital Association for payment by an active employee in that month. Please acknowledge your agreement by signing your name in the space provided below.
November 6,2003 Mr. Byron A. Boyd,
Jr. Dear Mr. Boyd: This confirms our understanding with respect to Document "A" of the Agreement o f this date. The provisions of Article IV, Part A, Section 3(k) (Opt-Outs) and Part B (Employee Cost Sharing of Plan Cost Increases) are not applicable to employees covered by the Agreement who reside in Canada ("Canadian Employees"), provided, however, that any local agreements that use the Plan "Payment Rate" to compute amounts payable to active Canadian Employees in connection with health care arrangements are amended as necessary to provide that, for such purposes, the Payment Rate shall be reduced by the Employee Cost-Sharing Contribution Amount in effect at the time pursuant to Article IV, Part B. Please acknowledge your agreement by signing your name in the space provided below.
November 6,2003 Mr. Byron A. Boyd, Jr. Dear Mr. Boyd: This confirms our understanding with respect to Article IV, Part A, Section 3(k) of Document "A" of the Agreement of this date (Agreement). That provision provides employees with an option to opt out of coverage for foreign-to-occupation health benefits for themselves and their dependents under the Plan and under any Hospital Association plan in which they participate. This will confirm our understanding with respect to the intended application of that provision. 1. An employee who opts out will be opting out of FO health coverage only and (if he otherwise satisfies eligibility and coverage requirements) will continue to have on-duty injury coverage, coverage under the Dental and Vision Plans, and life and AD&D insurance coverage. 2. If a husband and wife are each covered by the Plan (or a Hospital Association) by virtue of railroad employment and either or both hold positions covered by this Agreement, a UTU-represented spouse may elect to opt out as provided in Section 3(k). If that election is made (and provided the other spouse remains so covered), (i) such UTU-represented spouse shall not receive the $100/month payment provided in Section 3(k) and shall not be required to make the employee cost-sharing contributions required under Article IV, Part B, and (ii) the Plan’s coordination of benefits rules in effect on the date of this Agreement that are applied when a husband and wife are covered under the Plan both as an Eligible Employee and as an Eligible Dependent shall continue to be applicable. Please acknowledge your agreement by signing your name in the space provided below.
November 6,2003 Mr. Byron A. Boyd, Jr. Dear Mr. Boyd: This confirms our understanding with respect to the opt-out provision Article IV, Part A, Section 3(k) of Document "A" of the Agreement of this date (Agreement). It is understood that for purposes of Section 9801(f) of the Internal Revenue Code, (i) any opt-out election shall be treated as a declination of coverage, or a failure to enroll, for foreign-to-occupation health benefits under the Plan and under any Hospital Association plan in which the employee making the election may participate, (ii) that the provisions of Section 9801(f) and the regulations thereunder shall govern how any individual covered by an election to opt-out may nonetheless become covered for foreign-to-occupation health benefits under the Plan or any Hospital Association plan prior to the next regular opt-out election period, (iii) that the terms of Article IV, Part A, Section 3(k) of our Agreement shall be interpreted and applied so as to be in compliance with Section 9801(f), and (iv) that the employer's payment of $100 per month to an employee who has elected to opt-out shall cease immediately upon the employee and/or his dependents or any one of his dependents becoming covered, pursuant to Section 9801 (f), for foreign-to-occupation health benefits under the Plan or any Hospital Association plan. Furthermore, and notwithstanding the above, the parties recognize that an employee may lose coverage under the health plan or health insurance policy that he or she relied upon in electing to forego coverage for foreign-to-occupation health benefits under the Plan, and that such loss of coverage may be attributable to an event that is not listed in Section 9801(f) of the Internal Revenue Code and is beyond the control of the employee or of any member of his or her family. In such a case, and only to the extent permissible under Section 125 of the Internal Revenue Code: (a) the employee may ask his/her employer that his or her opt-out election be revolted; (b) the employer involved may in its discretion grant the request in the interest of fairness and equity; and (c) if the request is granted, the employee’s opt-out election shall be treated as revolted as of the day the employer received the request. Please acknowledge your agreement by signing your name in the space provided below.
November 6,2003 Byron A. Boyd, Jr. Dear Mr. Boyd: Article IV, Section 3 - Employer Election of Document "A" of the Agreement of this date provides in pertinent part that a carrier, at its election, may make cost-sharing contributions on an employee’s behalf and subsequently deduct the amount of such contributions from the employee’s wages as reimbursement. This will confirm that each of the carriers comprising the National Carriers’ Conference Committee will exercise that election with respect to the employees covered by this Agreement. Please acknowledge your agreement by signing your name in the space provided below.
November 6,2003 Mr. Byron A. Boyd, Jr. Dear Mr. Boyd: This confirms our understanding regarding Article IV, Part B of Document "A" of the Agreement of this date. 1. If a deduction from an employee’s wages for his monthly cost-sharing contribution pursuant to Article IV, Part B is scheduled to be made at the same time as the payroll deduction for the employee’s union dues, the union dues deduction may be made on a subsequent date mutually agreeable to the parties. 2. Each carrier shall examine the feasibility of including in the standard payroll documents provided to its employees information concerning the cost of the Plan and the employee’s cost-sharing contributions. The results of that examination will be shared with the authorized organization representative and, if feasible, the parties shall use their best efforts to implement such arrangements. Please acknowledge your agreement by signing your name in the space provide below.
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