Retirement Security Plan

This is a summary of the benefits provided by a new Teamsters Benefit Trust plan for retirees — the Retirement Security Plan (RSP).

TBT has created this new retiree plan because many retirees have asked how they can afford to continue their health coverage if they retire before they are eligible for Medicare and are living on a fixed income.

The new Plan provides medical, prescription drug, vision and dental benefits for a retiree and spouse.

You can enroll in the Plan if you are covered under a Union Contract that provides for participation in the Plan and if you satisfy all of the eligibility requirements.

The Plan is funded by contributions made on behalf of active employees. Because the Plan is paid for while you are working, you must meet all the Plan eligibility rules to enroll. If you have not met all the eligibility rules when you retire you won't be entitled to a refund of any monies paid to the Plan on your behalf.

If your Employer terminates participation in the Plan before you retire, you will not be eligible for the Plan.

If your former Employer terminates participation in the Plan after you retire, you and your spouse will remain covered in the Plan.

CONTRIBUTIONS

1. Monthly Contributions: The monthly amount required to participate in the RSP is funded through Employer payment or wage deferral on an hourly, monthly or pay-period basis. The method for funding your Plan payment will be stated in your Union Contract.
   
   If your Employer is obligated to make the monthly contribution but fails to do so, you will not be credited until TBT receives the payment. Call the TBT Plan Administration Office with any questions concerning RSP contributions that have been made on your behalf.
   
   
2. How Contributions Are Applied: There are two fixed six-month allocation windows during which contributions are totaled and divided by the monthly contribution amount to establish the months for which you have qualified for the RSP within each six-month allocation window. The fixed windows are October through March and April through September. RSP contributions are applied within these six-month windows and will not carry forward into the next six-month period.
   
   
3. Contributions Subject To Change: The RSP monthly contribution is subject to change and may go up based on the number of employees covered by the RSP and the Plan's experience. Therefore, the cost of the RSP is likely to increase in future years.
   If so, a Plan Change Notice will show the most recent amount.
   
   
4. Self-Payments: You may self-pay the monthly RSP contribution for any month in which you are entitled to self-pay for active Plan coverage, even if you choose not to self-pay for active Plan coverage. At the end of each six-month allocation window, you will receive notice of the right to self-pay if you have a contribution shortage. During any month that you are eligible for your Plan's "extension of benefits while totally disabled," you will be credited for a month of RSP qualification without self-payment. However, if you are not covered in a TBT Plan for active employees, this waiver of contributions does not apply. Your spouse's self-pay rights are explained under Spouse's Eligibility.
   

ELIGIBILITY RULES

You qualify for the Retirement Security Plan if, (You must meet all of the following eligibility rules.)

1. You retire on or after January 1, 2000;
   
   
2. You are a pensioner with the Western Conference of Teamsters Pension Plan (or another plan approved by TBT) or a recipient of Social Security disability benefits;
   
   
3. You were covered by TBT Plan I, I-85, I-A, III, III-A, III-NEWS, IV, V, V-A, VI, A (or other plans approved by TBT) for at least 24 out of 36 months immediately preceding your retirement date. For purposes of this eligibility requirement, "coverage" includes active coverage under any predecessor plan that merged into TBT or months during which you self-pay for coverage in your active employee plan.
   
   
4. You are not currently covered by or eligible for a group health plan for active employees (except as noted under Exceptions);
   
   
5. You must submit an application for RSP enrollment (with a copy of your Social Security or pension entitlement documentation) within 12 months from when you first become eligible for TBT retire benefits. (If you do not enroll within this 12-month period, except as noted under the Exceptions, you are not permitted to enroll at a future date.)
   
   
6. You retire from an Employer who is participating in the RSP as of your retirement date. Note: If your Employer stops participating in the RSP before you retire, you are ineligible for the RSP regardless of the number of months of contributions made to the Plan on your behalf (although you may be eligible for another TBT retiree plan).
   
   
7. You make any pos-retirement monthly self-payments required by the Plan on a timely basis.
   
   
8. You were covered by a Union Contract or TBT Subscriber's Agreement which provided for participation in the RSP and monthly contributions were made on your behalf by the Employer to TBT for each month that you qualified for health and welfare benefits; and you have met the minimum number of monthly Plan contributions needed to qualify as shown in the chart below:

OTHER PLAN PROVISIONS

1. Dependent Eligibility Rules: Only you and your lawful spouse are eligible for the Plan. Children are not eligible. If you die after you have met the Plan's eligibility rules, or after being covered under the Plan, your surviving spouse can enroll in the Plan or continue coverage. However, if a surviving spouse remarries, the new spouse is not eligible for the Plan.
   
   
2. Enrollment Date: You must enroll in the Plan upon your retirement, or after your COBRA coverage in the active plan ends, and cannot enroll at a later date.
   
   
3. Eligibility For Other TBT Retiree Plans: If you enroll in the RSP, you cannot participate in TBT's Comprehensive Retiree Plan (CRP) or Basic Retiree Plan (BRP). If you do not meet the eligibility requirements for the Retirement Security Plan, you may be eligible to participate in the other TBT Retiree Plans; however, in no event will you be entitled to the return of any contributions or wage deferrals that were made on your behalf to the Retirement Security Plan.
   
   
4. Non-Union Employees: Employees who are not covered by the Union Contract are eligible for the RSP as long as contributions are made for all of the Employer's non-Union employees; and they have met all the RSP eligibility rules.
   
   
5. Self-payments for Plan Coverage: The RSP is intended to be fully funded by contributions before retirement. Participation and Plan experience will determine whether this pre-retirement funding is adequate-and post-retirement, you may be required to make supplemental self-payments for continued Plan coverage.
   
   
6. Withdrawal from the Plan by Your Employer or Bargaining Unit: Employers and/or bargaining units that withdraw from participation in the RSP will be allowed to resume participation only upon submission of RSP contributions for the entire unit retroactive to the date of withdrawal. RSP eligibility requires retirement from an Employer participating in the RSP as of your retirement date.

PLAN BENEFITS

1. Indemnity Medical Benefits:
   Indemnity Medical option benefits are available from the TBT Plan Administration Office.
   If you are age 65 or older or otherwise Medicare-eligible, the Plan provides benefits under the assumption that you are enrolled in Medicare Part A and Part B. For full protection, you must enroll in both Part A and Part B.
   
   Contact your local Social Security administration office for Medicare information. It is listed in your local telephone directory.
   
   
2. Medical Options: You may choose between the Indemnity Medical option or one of the Health Maintenance Organizations (HMOs) available where you live by completing a TBT Medical Option Form.
   
   Each HMO provides separate printed material about its benefits. HMO material is available through the TBT Plan Administration Office.
   
   
3. PPO Network: If you choose the Indemnity Medical option and are not yet Medicare-eligible, your benefits are higher when you take advantage of the Blue Cross Prudent Buyer network of preferred providers (called a PPO); or the Blue Cross Blue Shield Nationwide Network outside of California. Once you are age 65 or otherwise entitled to Medicare, benefits are determined by Medicare.

   PPO hospitals, doctors, clinics and medical labs agree by contract to accept reduced rates and fee ceilings (which means important savings to TBT and you).
   
   When you use non-PPO providers, claims are paid based on a percentage of Usual, Customary and Reasonable (UCR) rates—which usually means your out-of-pocket costs will be higher.
   
   It’s your responsibility to make sure that you are using PPO providers if you want benefits to be paid at the PPO rates.
   
   To locate the nearest PPO doctors, medical labs and clinics, check the Blue Cross Prudent Buyer Network directory available through the TBT Plan Administration Office. A list of PPO hospitals and surgery centers is also available.
   
   Since the hospital list and participating providers are subject to change, check that a doctor or hospital is a PPO provider before receiving services by calling Blue Cross toll-free at (888) 887-3725.

4. Out of State Providers
   
   Non-California residents can verify that their provider is in the PPO network by calling 1-800-810-2583.

5. Pre-admission Certification and Utilization Review: In addition, Pre-admission Certification and Utilization Review procedures are required for non-Medicare participants for all non-emergency hospital stays and within 72 hours of an emergency admission.
   
   Call Blue Cross Life and Health at (800) 274-7767, except for alcoholism or chemical dependency treatment (see below).
   
   Failure to obtain Pre-admission Certification will result in a reduction of benefits. Charges for non-certified hospital days are not covered under the Plan.
   
   Utilization Review is also required by Blue Cross Life and Health to monitor in-hospital services and related charges even if you were admitted in an emergency.
   
   Once you are age 65 or otherwise eligible for Medicare, benefits are determined by Medicare.
   
   
6. Substance Abuse Benefit Review: The Teamsters Assistance Program (TAP) is the Plan’s review organization to oversee all alcohol or chemical dependency treatment (except for Medicare-entitled participants).
   
   TAP must pre-authorize and review such treatment or it will not be covered.
   
   For Pre-admission Certification and Utilization Review of alcoholism or chemical dependency, call the Teamsters Assistance Program (TAP) at (510) 562-3600 or (800) 253-TEAM.
   
   Once you are age 65 or otherwise eligible for Medicare, benefits are determined by Medicare.
   
   
7. When To Call: If you are not eligible for Medicare, the best time to notify Blue Cross Life and Health (or TAP) is when your doctor schedules an inpatient hospital stay.
   
   You, your doctor and the hospital will receive a written follow-up notice from Blue Cross Life and Health by mail. If you have not received a notice, you should verify that Pre-admission Certification has been conducted before going to the hospital. It’s good to check with Blue Cross Life and Health (or TAP) in advance.
   
   Remember, if Blue Cross Life and Health determines that hospitalization is not necessary—or that hospital services are not medically necessary—you, your doctor and the hospital will be informed by Blue Cross Life and Health.
   
   Blue Cross Life and Health will contact your doctor to confirm the need for hospitalization and write to tell you whether your hospital stay has been certified and, if so, for how long.
   
   The Plan will not cover charges for non-certified days in a hospital.
   
   
8. Limitations and Exclusions: The TBT Indemnity Medical option has its own limitations and exclusions, as does each of the HMOs.
   The Indemnity Medical option is described in detail in the Retirement Security Plan's "Guide To Your Benefits" and HMO coverage is described in the Summary of Coverage provided by each of the HMOs.
   
   Copies of HMO Summaries are available from the TBT Plan Administration Office at (510) 796-4676 or (800) 533-0119. The Plan's "Guide To Your Benefits" will be available in the near future.
   
   
9. Plan Change or Termination: TBT reserves the right to change or terminate the Plan at any time.
   If benefit changes are made, you will be notified at the home mailing address you have listed with the TBT Plan Administration Office.
   If your spouse does not live with you, let him or her know that all TBT mail will be sent to your address.
   
   
10. Open Enrollment: Open Enrollment is held each year from mid-August through September for changes effective October 1.

Copyright © 2002 Teamsters Benefits Trust, All rights reserved.