Health and Welfare Summary Plan Description
7.1 General Rules.
The Consolidated Omnibus Budget Reconciliation Act of 1985 (the federal law known as "COBRA") generally gives you and your Dependents the right to purchase Plan coverage for a temporary period upon a loss of coverage by reason of a "Qualifying Event." A "loss of coverage," for this purpose, means any continuation of coverage under the Plan on terms less favorable than coverage that applied immediately before the Qualifying Event (such as requiring a Monthly Coverage Payment where none was previously required). Timely Monthly Coverage Payments must be made to the Plan Office in the amount indicated in Appendix B. The maximum Monthly Coverage Payment will generally be the Plan's cost to provide your coverage (either by paying an insurance premium to one of the HMOs or by covering your claims directly under the Self-Funded PPO) plus a 2% administrative charge, except that the COBRA Monthly Coverage Payment for months (after the first 18 months) due to total disability will include a 50% surcharge instead of 2%. The Board may set the COBRA Monthly Coverage Payment at a lesser amount in its discretion.
- Reduced Monthly Coverage Amount for Apprentices. An apprentice in good standing who has made a COBRA Coverage election may pay a reduced Monthly Coverage Payment for COBRA Coverage for a month that is equal to the hourly Plan contribution rate under the Collective Bargaining Agreement multiplied by the number of hours that the apprentice's Hour Bank balance is deficient for providing coverage for that month. For this purpose only, the apprentice's Hour Bank balance shall include the number of day class hours attended by the apprentice during the month preceding the month for which the Monthly Coverage Payment applies. This rule is available to an apprentice only if the Director of Apprentice Training certifies to the Plan Office that the apprentice is eligible for this special rule.
- Reduced Monthly Coverage Amount for Disabled Participants. Disabled Participants may qualify for a reduced cost Monthly Coverage Amount for a limited portion of their maximum COBRA coverage period. (See Section 3.6.)