Retiree Healthcare [1]
Retirees to be hit with higher premiums
Under the tentative agreement, UPS Teamsters will no longer get retiree healthcare coverage through a company plan, beginning Jan. 1, 2014.
Teamsters who are currently covered by a union plan will continue to get retiree healthcare coverage through that plan. This applies to full-time Teamsters in New England, the South, Washington, Oregon, and various other areas and locals.
This will result in higher premiums and reduced coverage for thousands of present and future retirees.
Affected Teamster Locals in the West and in New Jersey Local 177 have until November 1, 2013 to come up with an alternative plan for those members, per a Memorandum of Understanding, or they will be moved to Central States.
Retiree Premiums
A Memorandum of Understanding states that Teamsters currently under the company plan will pay the following monthly premiums for retiree coverage:
Effective 1/1/2014 $50 individual $100 to include spouse
Effective 1/1/2015 $100 individual $200 with spouse per month
Effective 1/1/2016 $150 individual $300 with spouse
Presently the rate is $50
These increases would take effect for all retirees regardless of the date of their retirement.
Family Coverage?
The Central States Plan currently does not offer family coverage to retirees. The Memorandum of Understanding is silent on this. It states only an individual rate and retiree-plus. Under the current Central States plan, retiree-plus covers only spouses and not children.
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