Welfare Fund Early Retiree only benefit plan discontinued effective December 31, 2012
August 13, 2012
Dear Members:
During the past two years we have informed you of the impact the economic downturn and resulting decline in contribution hours have had on the financial stability of the Welfare Fund. We also advised you of several plan changes that were needed to respond to the Welfare Fund’s declining reserve position. In addition, it was necessary to significantly increase the contribution rate to the Fund.
We are pleased to report that the Fund’s financial condition is improving. However, as we continue to monitor the specific details of the Fund’s benefits and operations we find that more needs to be done.
A little over a year ago, we redesigned the Early Retiree only benefit plan effective June 1, 2011. We adjusted the monthly premiums to $500.00 per retiree and $400.00 for each dependent. Our plan was that this retiree program would be self-sustaining. After one year, the claims experience of the retirees and their dependents has exceeded the premiums collected by almost $500,000.
As we evaluated the continuation of the Early Retiree only benefit plan, we were faced with increasing premiums 50% to 60% and/or decreasing benefits with no definitive assurance that the Welfare Fund’s reserves would not have to subsidize unfavorable claims experience as it did this past year.
After careful consideration at the June 19, 2012 Board of Trustees’ meeting, we have determined to discontinue the Early Retiree only benefit plan effective December 31, 2012. We are providing you notice at this time to allow you sufficient time to make other arrangements for your health insurance.
You will have to obtain your own Medical and Prescription Drug Plan effective January 1st, 2013. To help you, the Fund is providing you with two contacts that may be able to assist you in acquiring other insurance suitable to your individual/family needs. The contacts are Hafetz & Associates, an insurance broker who also assisted our Medicare Retirees obtain secondary coverage and Horizon Blue Cross Blue Shield of NJ. Below is their contact information:
Hafetz & Associates
(866)-994-2338, ext. 121
Monday - Friday 8:30am – 5:00pm
Horizon Blue Cross Blue Shield of NJ
Sales Department (800) 224-1234
Monday - Friday 8:00am – 5:00pm or
(800) 355-BLUE (2583)
Information is also available online at www.horizonblue.com 24hrs a day
Please know that the decision to eliminate these retiree benefits was not reached easily. We believe, however, that these changes will enable us to provide Welfare Fund benefits to members for the foreseeable future – despite the ongoing decline of employer contributions and high unemployment in our industry.
If you have any questions or concerns, please don’t hesitate to contact the Fund Office
(973) 376-7230.
Sincerely,
The Board of Trustees
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