Trustees Of
The Plumbing and Pipefitting Workers Benefit Plans
Local 67
(Office Of The Administrator)
Reliable Administrative Services Inc.
195 Dartnall Road, Suite 102, Hamilton, Ontario LBW 3V9
Telephone: (905) 387-5861
Fax: (905) 387-4146
E-Mail: local67@rellableadmin.com
January 22nd, 2007
Dear Member: Re: U.A. Local 67 Health and Welfare Plan
Pensions Welfare Premium Rate Change
Since the inception of the Health and Welfare Plan, retirees have been allowed to continue their group insurance benefits without dental coverage by paying a reduced rate premium. At that time, the normal retirement age was 65 years, the same as the age for eligibility of the Ontario Drug Benefit Program, thus, the group insurance experience was not adversely affected by retirees paying a reduced rate premium.
Since May 1, 1985 the normal retirement age has been 62 years, three years earlier than the eligible age for the Ontario Drug Benefit Program. Retirees became eligible to participate in the pensioners welfare program at age 62 by paying a reduced rate premium, thus adversely affecting the overall experience of the group insurance benefits.
With the advent of ever rising prescription drug costs, the claims experience for retirees under age 65 paying the reduced rate premium has reached a critical level, whereby the current premium cannot sustain the level of claims.
The Trustees have no alternative but to revert to their original intention of allowing retirees to participate in the pensioner’s welfare plan only when they become eligible for the Ontario Drug Benefit Program at age 65.
Effective January 1st, 2007, all new retirees (Regular, Disability, Early), after they have exhausted their welfare bank will be allowed to participate in the pensioner’s welfare plan at age 65 only, coincident with the Ontario Drug Benefit Program.
Retirees who exhaust their welfare bank prior to age 65 and choose to continue their coverage will be required to pay the regular group insurance premium of $227.06 plus 8% RST.