LOCAL 1060

Communications Workers of America                          AFL-CIO, CLC

595 Somerset Street  North Plainfield, NJ 07060-4908 (908) 561.8806

Lucent: 2007 JRHC Healthcare Negotiations Summary

June 18, 2007

Meetings of the Joint Retiree Healthcare Committee to negotiate possible changes to the Retiree healthcare plan design and/or healthcare premiums, were initiated in March 2007 and were to conclude no later than June 15, 2007.   Once again the Company expected the JRHC to solve for the "True-Up" from 2006 healthcare claims, in addition to the projected shortfall for 2008. 

The Union again pushed back and advised the Company that the contract language required the JRHC to address only the 2006 True-up and not the 2008 projected shortfall.  Negotiations continued and on June 15, 2006 the Parties reached agreement on recommend changes to the Retiree Healthcare Plan.  The changes include the following:

Prescription Drug Plan

• Change co-pays from $10/$25/$35/$40 (retail) and $25/$62.50/$87.50 /$100 (mail order) to $10/$25/ $35/$50 (retail) and $25/$62.50/$87.50/$125 (mail order).

Medical

• Increase POS out-of-pocket maximum from $1,250 to $1,500; and
• Change Traditional Indemnity deductible to 2.5% of pension.

Premiums

• Decrease post-3/1/90 post-age 65 premiums from 6.5%/13% to 6.0%/12% (no .5% increase as is currently required under the Lucent contract; and
• Maintain post-3/1/90 pre-age 65 premiums at 2007 level of 8.5%/17% (no .5% increase as is currently required under the Lucent contract language. 

While the changes for the 2008 Plan Year do include a slight increase in the fourth tier of the Prescription Drug Plan, as well as an increase to the POS out-of-pocket maximum, changing the Traditional Indemnity deductible from $150 + 1% of Pension to a flat percentage of 2.5% of Retirees' pensions will equalize the impact across all pension levels.  In addition, premiums were lowered for the Post-65 Retirees and premiums for pre-65 Retirees will not increase in 2008.

CWA JRHC Committee Members:

Martha Flagge
CWA Representative

Brian Reilly
President, CWA Local 1062