Group Life, Disability Improved; Benefits Protected for Injured Workers and Disabled Retirees
Our bargaining team at Ford successfully improved our Group Life and Disability insurances, and won new protections for injured workers. The proposed agreement includes disability language that makes the filing process easier, eliminates unnecessary delays, reduces paperwork and red tape, provides professionals to assist our members, and ensures equal treatment for all workers with non-job-related injuries or illnesses.
Negotiators also protected our pocketbooks by holding the line on proposed rate increases for retirees’ optional insurance, while reducing the cost for active workers.
Survivor Benefits
Transition benefits have been increased $50, from $650 to $700 per month. The Bridge benefit has been increased $50 per month, from $650 to $700. In addition, the Transition benefit offset for receipt of Social Security will increase by $25, from $350 to $375.
Accident and Sickness (A & S) and Extended Disability Benefits (EDB)
As a result of the negotiated increases in the base hourly rate, all workers will receive increases in the Accident and Sickness Benefits and Extended Disability Benefits. Benefits under the Life and Accidental Death and Dismemberment coverages also increase (see chart).
In addition, there will be a joint effort to reduce inappropriate use of disability benefits by focusing on certain physicians. These physicians may be removed from the program and any certifications coming from them will no longer be regarded as proof of disability.
In an effort to minimize the impact of overpayments from Social Security Disability Insurance Benefits (SSDIB), the parties have agreed to allow the use of so-called ”sweep accounts,” as part of the new Social Security disability application process through the UAW-Ford Legal Services Plan (see below). Under the current program, members agree to repay any benefit they were paid by the A&S or EDB Program when they receive their retroactive SSDIB award. The sweep account, which is voluntary, allows SSDIB to transfer funds directly into the sweep account which are then directed to Ford. This will help prevent over payment recovery situations for our members.
Life Insurance
Life insurance coverage will increase with base hourly wage increases (see chart). In addition, members will become eligible for life insurance on the day of hire. Previously, they became eligible the first day of the month after hire.
Exam Mileage Reimbursement
The exam mileage reimbursement was increased to the IRS maximum limit of 48.5 cents and will keep pace with increases by the IRS.
Psychologist Can Now Put Member on Medical Leave
Negotiators won language that allows a psychologist to put a member on medical leave for the first 30 days of medical leave. This clears up the current situation where the company accepts the psychologist’s note for medical leave, but Unicare does not recognizie the psychologist and denies the A & S benefit. After the 30-day period, treatment by a psychiatrist will be required.
Benefits Protected for Disabled Retirees;
Multiple Unicare Filings No Longer
Needed
Disabled retirees will no longer be required to provide yearly medical updates. For those disability retirees who receive the Unicare supplement to make up the difference between the Accident & Sickness benefit and the Pension benefit, Unicare will no longer actively manage their cases after one year. Negotiators were aware of cases where Unicare stopped payments to retirees who had difficulties getting annual documentation from doctors who have moved or passed away or from doctors who have not previously treated their conditions.
Equal Treatment for Non-job-Related Injury and Illness
In a major breakthrough for workers with non-job-related injuries and illnesses, UAW Ford negotiators won a commitment from the company for equal treatment for all workers with such conditions. All Class II and Class III status employees will be returned to a Class I medical status and Class II and III medicals will be eliminated. This will ensure that no member will be treated differently because his or her work location is unable to accommodate a work restriction or due to other placement issues. As a result, no member will be put in a situation where he or she will eventually run out of health care benefits, be unable to retire or lose Ford employee status.
As currently, workers on Class I medical status will retain health care benefits and are paid Accident and Sickness and Extended Disability Benefits.
UAW Legal Services to Advocate for Members on Social Security Disability
Our negotiators recognized the need for our members to have competent legal advice when they file for Social Security disability benefits. UAW Legal Services will now handle the filing of the Social Security disability application for any member who is required to file while receiving disability benefits from Unicare, at no cost to the member. Legal Services will also ensure that no one will have to go through the Social Security disability application process if it is not likely they will be approved (see below).
Medical Leave and Disability Claim Process Simplified
A new, simplified and combined process for medical leave and disability claims will result in more timely A&S payments and should help with the “20-day rule” that resulted in members having problems getting their benefits. The new process will establish a toll-free number for members to call in for their conditional medical leave, and to initiate their disability application. The necessary forms will be mailed to a worker who needs to file a claim, while his or her work location and Unicare will be notified.
Hourly Optional Employee and Dependent Life Insurance Plan Improvements
There will be an open enrollment period in each year of the proposed contract: 2008, 2009, 2010 and 2011. This is an improvement over current contract language, which had an open enrollment period for only the first year of the agreement.
You will be able to enroll in Level 1 or Level 2 without providing Evidence of Insurability (EOI). If you choose to go up to a higher level, you may do so by supplying the necessary EOI.
Six new Employee levels will be added, and three new Dependent levels will be offered.
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Negotiators also added an Accelerated Death Benefit option to the Optional Life benefit– up to 80 percent of the life insurance benefit will be available to the terminally ill employee/retiree with a life expectancy of less than 12 months.
The company wanted an increase of 20 percent for Retiree Optional Accident, Life and Dependent Life rates. Our bargaining committee rejected this to hold the rates to the 2003 contract levels.
Negotiators also won a significant cost savings for our active members. Under terms of the proposed agreement, active UAW Ford workers will see a 4 percent rate reduction for the cost of their Optional Life and Optional Dependent Insurance.