The Union for the Information Age

Qwest Contract:

 Letter of Agreement: Retiree Health Care

 “This letter will confirm our agreement regarding retiree health care and the provisions surrounding retiree health care caps.

 

(a)              The Company shall contribute funds (by direct payment and/or payments made from the Company sponsored trust funds or other Company sources) for the actual aggregate U S WEST Health Care Plan (“Plan”) costs (excluding Plan coverage Medicare Part B premiums capped at 1995 reimbursement level) for Union represented employees retiring from the Company (and their Class 1 dependents) in each calendar year after 1990, up to a total Company contribution of not less than the single amount calculated as the sum of the costs in all Coverage Categories (i.e., the sum of column (D) in the following restructured schedule:

 

(A) Coverage  (B) Cost Cap (C) Multiple Factor (D) Total Category

Category 

                            

                                       

Cost 
Under Age 65 adult   $  4,960   Total adults (retiree + spouse)  (B) x (C)
Child(ren) (incl students & handicapped)  $  2,070 Total retirees who cover 1 or more children (B) x (C)
Age 65 and over, Adults   $  2,570  Total adults (retiree + spouses) (B) x (C)

With respect to individuals retiring on or after January 1, 1991, (except employees who retired under the 1992 ERO), the Company reserves the right to assess individual premiums (which, if assessed, shall vary based on whether the individual is over or under the age of sixty-five (65) and the type of Plan coverage (adult, child) as an alternative method of funding Plan costs in excess of the aggregate amount of Company contributions for one of the Coverage Categories (e.g., Under age 65, adult) exceed the maximum Company contribution for that category, but the total costs for all Coverage Categories do not exceed the maximum Company contribution on an aggregate basis (i.e., the sum of column (D), then no retired employee would be required to make a contribution for the Plan year. However, no retired employee shall be required to pay any contribution toward Plans costs for coverage prior to January 1, 2002.

If the Cost Caps in the above schedule are increased in any bargaining contract between the Union and the Company entered into after expiration of this contract, the Company will adjust the Cost Caps in the above schedule to match the increased Cost Caps as bargained.

(b)      For employees who retire on or after January 1, 1991, the Plan shall provide benefits equivalent to the average actuarial value (subject to the possibility of the Company’s assessment of premiums as set forth in paragraph (a) of the this Section) of the benefits provided from time to time under the health care plan for active occupational employees, and the Company shall continue to have the right to amend such benefits subject to negotiations. This paragraph will apply to employees who retired under ERO only to the extent it is consistent with the 1992 “ERO” health care commitment.

(c)      For active and future retired employees, there shall be no lifetime maximum of the amount of benefits available from the Plan during the term of this Agreement

(d)      With respect to individuals retiring on or after January 1, 1991, effective January 1, 1996, the Company will cap the Medicare Part B Reimbursement at the 1995 rate of $48.10 per month.”