be packaged in a certain way. This is sensible, and, if
participants or their family members inform us, the Trust
will address this concern by approving overrides that
simplify things and allow use of the required pharmacy,
while still receiving Medco’s significant discounts.
Automation with a Personal Touch.
The Trust’s systems
and procedures have been highly automated to improve
accuracy and service, while reducing administrative
costs. Yet the personal touch is maintained to assure
participant satisfaction. Participants express appreciation
for the fact that a person, rather than an automated
attendant, answers every call.
Limited Access to
Retiree Health Plans
The Union and the contributing employers continuously
consider the retirement needs of the eligible retirees
and their eligible spouses. According to the U.S.
General Accounting Office, only one-third of large
employers, and less than 10% of small employers, offer
retiree health benefits. Just 20 years ago, almost two-
thirds of large employers offered such plans.
Retirees face significant affordability challenges, paying
a considerably larger share of coverage costs than
active employees, according to the 17th annual Towers
Watson/National Business Group on Health Employer
Survey on Purchasing Value in Health care. Retirees
under age 65 pay, on average, over $4,200 per year in
premiums for single coverage, and over $10,500 per
year for family coverage. Once retirees reach age 65
and become Medicare-eligible, they pay, on average,
about $2,000 per year in premiums for single coverage,
and $5,200 per year for family coverage. Even with an
employer subsidy, many still find coverage too costly.
Compare these premiums with the highest monthly
contribution charged by the Trust for any of its
programs — $45. In many cases, eligible Trust retirees
pay nothing in monthly contributions.
Contributing Employers
Generally, the Trust has excellent relationships with the
contributing employers. There have not been any major
problems with the submission of funds. Unfortunately, layoffs
and plant closings have continued during this past year.
In 2008, the Trustees formed a Contributions Audit
Committee and approved a new policy to oversee
regular audits of contributing employers. The audits
are for the purpose of assuring the Trustees that the
Trust is receiving the funds it is due under applicable
collective bargaining agreements. In 2009, the Trust’s
three largest contributors were audited; in 2010 and
2011, an additional four companies were audited.
The Contributions Audit Committee will continue to
monitor the results of the audits.
At the end of this report, there is a list of the
contributing employers as of December 31, 2011. In
some instances, the individually listed contributing
employers also have related companies.
Financial
For the calendar year 2011, the Trustees once again
engaged the accounting firm of Hill, Barth & King, LLC to
audit the Trust’s books. This firm has concluded its audit
for the fiscal year ending December 31, 2011. Its audit
report confirms the substance of the financial summaries
in this report:
•
“Statements of Net Assets Available for Benefits”
on page 12 of this report;
•
“Statements of Changes in Net Assets Available for
Benefits” on page 13 of this report; and
•
“Statements of Benefit Obligations” and
“Statements of Changes in Benefit Obligations”
on page 14 of this report.
The Trust’s fund is not immune to the market trends. In
each of their regular meetings, the Trustees monitor the
performance of the Trust’s investments and that of their
investment managers.
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