New Retirees – Health Care Payments

As the hourly health care changes were being implemented for UAW employees retiring under the Special Attrition Program, a mistake or miscommunication occurred as to whether or not an employee is required to authorize health care payments to be automatically deducted from the new retiree’s pension checks.

During the retirement process, a future retiree is asked to authorize deductions from their pension check, and submit that authorization with their final package of pension papers.  If the retiree does not make that designation, the system will allow for a two month grace period of automatic deductions until the formal authorization is received.  If the authorization is not received after two months, invoices will be sent to the retiree.  Along with these invoices is a notification that failure to make the health care payment could result in health care coverage being defaulted to the catastrophic option.

We are advising UAW hourly retirees not to pay the invoices they have received.  Any outstanding payments will be deducted from their pension checks in November and December.  The automatic health care deduction process will be re-activated and remain in effect for current retirees and employees retiring throughout the end of 2006, unless the retiree chooses to have their payments invoiced instead.

Active Hourly – Planning to Retire

Anyone planning to retire between now and the first of the year needs to contact their assigned Benefit Representative to start the retirement process ball rolling.  You can start this process anytime within 90 days before retirement.  I would suggest that you use all 90 days, because this is still a very complex process as far as Fidelity is concerned.  Fidelity has been authorized by General Motors to run the show, and we have to follow their rules and regulations no matter how foolish they may sometimes seem.

The 2006 Total Compensation Statement for hourly employees is scheduled to be mailed to employee’s homes beginning October 9, 2006.  This information is a “snapshot” of employees’ total compensation as of December 31, 2005. All hourly employees are encouraged to review their personal information.  Employees who are ineligible for a TCS will receive a Credited Service Statement once the mailing is completed.  A limited number of identified employees who have data issues that may cause their credited service to show inaccurately are being addressed, and those cases will be corrected.  Employees who have not received a 2006 statement by mid November should be advised to call Fidelity at 1(800) 489-4646 to request a replacement statement.

Your Local 730 Benefit Plan Reps