Retiree Benefits
The privilege of making self-payments by either you or your spouse to maintain
eligibility for Retiree Benefits is not an "accrued benefit." The right to
change, reduce or eliminate any and all aspects of benefits provided for retirees
and their dependents, including the right to increase the retiree self-payment
rate, is a right specifically reserved to the Trustees.
Eligibility Requirements for Retiree Benefits
To be eligible to make self-payments for Retiree Benefits, you must meet the
following requirements:
Early and Normal Retirements
- You must be at least age 55; AND
- You must be retired from any and all employment in the electrical industry
or any organization affiliated with the electrical industry (does not apply
to working as an electrical inspector, or as an instructor in an apprenticeship
program recognized by the IBEW or NECA); AND
- You must be receiving retirement benefits either from a plan negotiated
or sponsored by the IBEW, from a qualified pension plan sponsored by a contributing
employer, or from Social Security; AND
- You must be eligible on the day immediately preceding the effective date
of your Lineco Retiree Benefits; AND
- You must have been eligible for coverage under Lineco for 48 of the 60
months preceding the effective date of your Lineco Retiree Benefits (the 48
coverage months do not have to be consecutive). In addition:
- No more than 6 consecutive months immediately preceding the effective
date of your Lineco Retiree Benefits can be COBRA coverage months; and
- Out of the 48 coverage months, no more than 12 can be due to COBRA
self-payments, UNLESS you were eligible under Lineco for 96 of the 120
months immediately prior to the start of your Lineco Retiree Benefits.
If you retire before your employer has participated in Lineco for at least
60 months, the Plan will look at your last 60 months of employment with that
employer, including the months prior to the employer's Lineco participation
date, in order to determine whether you meet the 48-month requirement.
Disability Retirements
- You must be receiving disability retirement benefits either from a plan
negotiated or sponsored by the IBEW, from a qualified pension plan sponsored
by a contributing employer, or from Social Security; AND
- You must be eligible for coverage under Lineco on the day immediately preceding
the date your disability pension becomes effective.
Postponing or Suspending Retiree Benefits for Your Spouse
- You can postpone Retiree Benefits coverage for your spouse if your spouse
has employer-provided group health coverage. You can also suspend Retiree
Benefits coverage for your spouse if, after you retire and elect spousal coverage,
your spouse becomes eligible under another employer-provided plan. During
the time your spouse has the other coverage, you will only need to pay the
single rate for Retiree Benefits for yourself, provided you have no other
covered dependents. Then, when your spouse's coverage terminates (for example,
when your spouse retires), you can start paying the higher rate for both you
and your spouse.
- If you want to postpone or suspend coverage for your spouse, you must provide
proof of your spouse's other coverage to the Fund Office. To reinstate spousal
coverage, you must submit proof that the other coverage has ended. Proof must
be submitted within one month after the other coverage terminates. There cannot
be a coverage gap of more than one month.
- Your spouse's Lineco coverage cannot be reinstated unless and until her
other coverage terminates.
The postponement and suspension rules do not apply to retirees—they are only
for spouses. However, if a retiree has a dependent child who is also covered
by the spouse's plan, Retiree Benefits coverage for that child can be postponed
or suspended, and later reinstated, along with the spouse's.
Dropping Spousal Coverage - Retirees are also permitted to drop spousal coverage. This opt-out for a spouse
will be valid only if the spouse signs a written acknowledgement that Lineco
coverage will never become available again. Retirees
Eligible for VA Benefits - A retired employee who is eligible for coverage through the Veterans Administration
(VA) may opt out of Lineco Retiree Benefits for himself while maintaining Lineco
Retiree Benefits for his spouse (at the single coverage rate). The retiree
can opt back into the Retiree Benefits program later.
Retiree Benefits Coverage
You have a choice of making self-payments for one of the following Retiree
Benefits Options:
- Option 1 - Medical benefits only, which includes the Routine Physical Exam
Benefit, the Diagnostic X-Ray and Lab (DXL) Benefit, the Comprehensive Benefit,
and the Mental Health and Substance Abuse Benefit. Retirees and their dependents
are eligible for the same prescription drug benefits they had under the active
plan until they become eligible for Medicare. When a retiree or dependent
becomes eligible for Medicare, that person's prescription drug coverage will
be provided under the special program for Medicare-eligible participants
(described on page 55), and the person's Comprehensive Benefit out-of-pocket
limit will be reduced to $1,125 per calendar year. Note - No Routine
Physical Exam Benefits or DXL Benefits are payable for dependent children.
- Option 2 - Medical and prescription drug benefits (as stated in Option 1
above) plus the Dental Benefit and the Vision Care Benefit.
Once you select and option you cannot change it except during the first 30
days after your original coverage election. The only exception is that if you
originally elect dental and vision coverage, you can later drop those coverages.
However, the change will be permanent—if you drop dental and vision coverage
you cannot re-elect it at a later date.
Retiree Benefits do not include Weekly Income Benefits, Life Insurance or AD&D
Insurance. In addition, you are not entitled to any coverage under the Eligibility
During Disability rules once you retire. Otherwise the benefit coverage currently
provided for you and your dependents under Option 1 or Option 2 is the same
coverage that is provided to active eligible employees and their dependents,
except that, as explained above, prescription drug coverage and out-of-pocket
limits are different for participants who are eligible for Medicare.
In the event of your death, your spouse may continue making self-payments for
the option she is covered under when your death occurs.
The benefits provided to retirees may be changed at any time by the Trustees.
Medicare Part D Prescription Drug Plans - Medicare prescription drug coverage is available to everyone with Medicare.
This coverage is separate from any coverage provided by Lineco. You must pay
a monthly premium to a private plan approved by Medicare in order to get Part
D coverage.
Medicare-eligible retirees (and Medicare-eligible spouses of retirees) have
the option of dropping Lineco's prescription drug coverage and switching to
a Medicare Part D plan. However, most participants will NOT benefit by doing
so, and Lineco is NOT encouraging anyone to switch to a Part D plan.
- You cannot choose dual coverage.
- Your self-payment amount to Lineco will not change if you elect a Part
D plan.
- Lineco will not pay your Part D plan premiums.
- If you elect a Part D plan, you can still make payments for this Plan's
Retiree Benefits. In such case, Lineco will provide you with hospital and
physician benefits—but not prescription drug benefits.
- If you elect a part D plan and change your mind later, you can get back
into Lineco's prescription drug program, but you must first drop your Part
D plan.
- You and your spouse can be covered under different drug plans.
- You must inform the Lineco Fund Office if you or a Medicare-eligible dependent
chooses Part D coverage. If you do not provide timely notification, and if
Lineco continues to pay your drug expenses, you will have to repay Lineco
for the amount it paid. Your double coverage could also cause problems and
overpayment situations with your Part D plan.
Please note that Lineco's prescription drug coverage for retirees is at least
as good or better than the coverage provided under a standard Part D plan.
Because of this you can keep this coverage and not have to pay an extra late
enrollment penalty if you later decide to enroll in Medicare Part D coverage.
However, the Medicare Part D late enrollment penalties WILL apply if there
is a gap of 63 days or more between your termination date under this plan and
the start of your Part D plan.
Coordination of Benefits With Medicare - If you and/or your spouse are eligible to participate in Medicare, this Plan's
benefits will be calculated as though benefits under Medicare Part A and Part
B have been paid, whether or not you are actually enrolled in both Parts. You
and your spouse should enroll in both Medicare Part A and Part B when eligible
to do so.
Lineco will not coordinate its prescription drug benefits with a Part
D plan.
Self-Payment Rules for Retiree Benefits
- You must make your first self-payment on or before the date on which a
self-payment to maintain continuous coverage is due. There must be no lapse
in coverage between active employee coverage and Retiree Benefits coverage.
- The amount of the monthly self-payment is determined by the Trustees and
may be changed at any time. Self-payment amounts for retirees are based on
the retiree's dependent status and whether or not the retiree and/or his dependents
are eligible for Medicare.
- You must mail your self-payments to the Fund Office. Each payment must
be postmarked no later than the 15th day of the month preceding the benefit
month for which you are paying in order to be accepted by the Fund Office.
For Example - To be covered for benefits during the March benefit
month, your self-payment must be postmarked no later than February 15th.
That self-payment will be credited to your account as hours in the eligibility
month of January—the eligibility month corresponding to the March benefit
month.
- If you fail to make a self-payment on or before the date it is due, your
eligibility for Retiree Benefits will terminate at the end of the benefit
month for which you have already paid. You will not be allowed to make any
future self-payments.
- Once a self-payment has been accepted by the Fund Office, it will not be
returned.
- If you die while making self-payments for Retiree Benefits, your surviving
spouse can continue Retiree Benefits coverage for herself and any dependent
children by making self-payments as explained in the following section.
You can also make your Retiree Benefits self-payments by automatic withdrawal
from your personal bank account. Contact the Fund Office if you would like more
information about this service.