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1199SEIU NATIONAL BENEFIT FUND FOR HEALTH AND HUMAN SERVICE EMPLOYEES SUMMARY OF MATERIAL MODIFICATIONS This Summary of Material Modifications describes changes that affect your welfare benefit plan and updates the Summary Plan Description (employee booklet) that was previously distributed to you. You should keep this summary with your current employee booklet until the booklet is updated to reflect the changes discussed herein. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Effective March 1, 2009, the following changes to the 1199SEIU National Benefit Fund for Health and Human Service Employees (“Benefit Fund”) apply: 1.

2.

For the duration of the COBRA continuation coverage subsidy program provided for in the American Recovery and Reinvestment Act of 2009, including any extensions of the provisions thereof by future legislative action (comprehensively, “Act”), the Benefit Fund Continuation Coverage described in Section I.J of the Summary Plan Description shall not be provided to participants who are eligible for both COBRA premium reduction under the Act and for benefits under the 1199SEIU/League Job Security Fund (“Eligible Participants”). Eligible Participants may continue to be covered by the Benefit Fund through participation in the 1199SEIU/League Job Security Fund, which directs payment of COBRA premiums on behalf of Eligible Participants, subject to the terms and conditions of its plan. For more information, call (212) 629-5505. –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

This summary only highlights the key changes made to the 1199SEIU National Benefit Fund for Health and Human Service Employees. Summaries of material modifications together with the Summary Plan Description make up your official plan descriptions; please keep them together and refer to them as necessary. We have made every attempt to insure the accuracy of the information in this summary and the Summary Plan Description. However, if there is any discrepancy between them and the plan document, insurance contracts or other legal documents, the legal documents will always govern. If you would like to review the plan document or have any questions, please contact the Fund’s Member Services Representatives at (646) 473-9200. The plan sponsor of the 1199SEIU National Benefit Fund for Health and Human Service Employees reserves the right to amend or terminate the 1199SEIU National Benefit Fund for Health and Human Service Employees, or any part of it, at any time.

1199SEIU/LEAGUE JOB SECURITY FUND SUMMARY OF MATERIAL MODIFICATIONS This Summary of Material Modifications describes changes that affect your job security benefit plan and updates the Summary Plan Description (“SPD”) that was previously distributed to you. You should keep this summary with your SPD until the SPD is updated to reflect the changes discussed herein. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Effective March 1, 2009, the following changes to the 1199SEIU/League Job Security Fund apply: 1.

2.

3. 4.

5.

For the duration of the COBRA continuation coverage subsidy program provided for in the American Recovery and Reinvestment Act of 2009, including any extensions of the provisions thereof by future legislative action (comprehensively, “Act”), the Benefit Fund Continuation Coverage shall not be provided to participants who are eligible for both COBRA premium reduction under the Act and for benefits under the 1199SEIU/League Job Security Fund (“Eligible Participants”). Eligible Participants shall be entitled to their regular SUB payments through the 1199SEIU/League Job Security Fund, increased by an amount equal to 35% of their COBRA premium to the 1199SEIU National Benefit Fund for Health and Human Service Employees (plus tax gross up)(together “Increased SUB”). Entitlement to the Increased SUB payments is conditioned on the Eligible Participant’s participation in COBRA and satisfaction of the rules and conditions of the 1199SEIU/League Job Security Fund and of the 1199SEIU National Benefit Fund for Health and Human Service Employees. Once the Eligible Participant has exhausted the maximum allowable months of COBRA continuation coverage subsidy, the Increased SUB will terminate, but the 1199SEIU/League Job Security Fund will continue to pay the full COBRA premium to the 1199SEIU National Benefit Fund for Health and Human Service Employees on behalf of the Eligible Participant for the lesser of: (a) the remainder, if any, of the period of Continuation Coverage due under the terms of the SPD or (b) the remainder of COBRA entitlement. Once the Eligible Participant’s 1199SEIU/League Job Security Fund eligibility ceases, the benefit described above ceases. –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

This summary only highlights the key changes made to the 1199SEIU/League Job Security Fund. Summaries of material modifications together with the Summary Plan Description make up your official plan descriptions; please keep them together and refer to them as necessary. We have made every attempt to insure the accuracy of the information in this summary and the Summary Plan Description. However, if there is any discrepancy between them and the plan document, insurance contracts or other legal documents, the legal documents will always govern. If you would like to review the plan document or have any questions, please contact the Fund’s Member Services Representatives at (646) 473-9200. The plan sponsor of 1199SEIU/League Job Security Fund reserves the right to amend or terminate the 1199SEIU/League Job Security Fund, or any part of it, at any time.

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Collective Bargainers Stabilize Funds and Protect Benefits As you know, the economic downturn, stock market crash and spiraling healthcare costs took a steep financial toll on our Benefit and Pension Funds, threatening our comprehensive benefit package. In response, your Union and League employers came together and managed – during one of the most difficult economic environments in recent history – to negotiate a new contract that fully protects our health benefits and defined benefit pension plan and still provides modest wage increases. This means we will continue to have comprehensive coverage with no out-of-pocket costs as well as our rare defined benefit pension plan. The new contract, which runs through 2015, also protects the health and pension benefits of our retirees. To protect our benefits, the new contract requires everyone to do their part. Employers will increase their contributions to the Health Care Employees Pension Fund from 6.75 to 15.8 percent and increase contributions to the National Benefit Fund from 22.5 to 28.38 percent. This was made possible in part by members agreeing to divert the 3 percent 2009 wage increase and 1 percent of the 2010 wage increase. The contract also directs our National Benefit Fund to find an additional $150 million in cost-containment over the next five years. Our Fund, with our labor and management trustees, will be looking at more ways to hold the line on costs, and there may be changes again in the way we access some of our benefits going forward – similar to when the Fund introduced other cost-containment programs like using preferred lab and radiology providers, or ordering long-term medications in a three-month supply. This contract was negotiated during one of the most difficult economic climates ever – a climate in which other union members are being forced to accept higher co-pays and higher deductibles, where employers have stopped contributing to their workers’ pension funds or 401(k) savings and where the cost of healthcare continues to skyrocket. Despite this, the negotiating committees of the Union and the League came together to find a solution, and your health and pension benefits have been protected and preserved for years to come.

The Challenge of Protecting Health Benefits As your Benefit Fund, we work hard to hold down the costs of our healthcare coverage and leverage every contributed dollar so we can protect our access to quality care. We manage to provide our comprehensive coverage at far less than the national average. We set lean administrative budgets, sending every available dollar toward paying for your healthcare. And through our cost-containment programs, you have helped to save millions of Benefit Fund dollars without limiting your access to the care you need. Yet despite our best efforts, we, like the industry at large, cannot withstand the ever-rising costs of healthcare. As healthcare costs rise faster than the rate of inflation, it becomes more and more difficult to provide the level of benefits you have earned. That’s why your Union’s Negotiating Committee agreed to commit to finding ways to preserve our health benefit package. To hold down costs, our Benefit Fund will be introducing new cost-containment programs developed with our labor-management Cost Containment Committee of Trustees. As in the past, there will be changes in the way we access our benefits, but not in the level of benefits we enjoy. So, let’s all do our part and keep an eye out for upcoming changes.

FOR YOUR BENEFIT

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For Your Benefit Magazine - Summer/Fall  

Summer/Fall 2009