Health and Welfare Summary Plan Description
4.4 Retiree Monthly Coverage Payments
- General Rules. Early Retirees, Disabled Retirees, and Regular Retirees must pay a Monthly Coverage Payment in order to maintain coverage. The Monthly Coverage Payment schedules are included in Appendix B. Generally, Monthly Coverage Payments are adjusted annually on February 1 based on the percentage increases to the Plan following contract renewals with the various Plan insurers. Regular Retiree Monthly Coverage Payments will vary depending upon whether you satisfied the service requirements in the period before attaining age 62 as described in Section 4.3. Depending on your retirement status, Monthly Coverage Payments can be quite expensive, so you may want to review the Monthly Coverage Payment schedule or contact the Plan Office before making your retirement plans. The Board may change, at any time and for any reason, the amount of the Monthly Coverage Payment.
- Making Retiree Monthly Coverage Payment. A Retiree's Monthly Coverage Payment for a month is due by the 10th day of the month preceding the month of coverage (that is, you must pay early). Be sure to make timely payments, because failure to pay your Monthly Coverage Payments on time may result in cancelation of coverage without right of reinstatement. In the case of Early Retirees, failure to timely pay may result in the permanent forfeiture of your Early Retiree coverage and future participation as a Regular Retiree at age 62, unless you satisfy the service requirement under 4.1(a)(1). At your request, your Early Retiree Monthly Coverage Payment may be deducted from your monthly Pension Plan benefit. Contact the Plan Office for the form that authorizes the deduction from your pension check.