To the Membership,
A few things to keep in mind as we move towards 2019 Benefits. (TWU VOL Benefits Line)
1) Lincoln Term Life premium increased 13% with a two-year rate guarantee, beginning 2019. The entire increase was applied to the open active policy, which includes Active and Retirees. The rationale behind the increase to the open policy is to provide some relief to the closed grandfathered participants as the past two renewals increased their rates and reduced their benefit at age 70. Because of this, the closed grandfathered renewal rates will remain static.
The increase is nominal but can also be substantiated by 1) claims and 2) the member and spouse port into retirement at the same rate as if they were active. As an example, 87% of the 6,600 open policies (5,700), currently pay under $6 per week. These members will realize a weekly deduction increase of $1.50 or less.
2) A reminder for the 2019 STD rate change that as part of our 2-year rate guarantee. As you may recall, the Standard was going to increase us to $39.50 per member per month. The Hartford proposed the following, which is what we ultimately agreed to.
Two-year rate guarantee
1/1/2018 $30.00 PMPM (per member per month) = bi-weekly increase of $2.65, weekly increase of $1.33
1/1/2019 $33.50 PMPM (per member per month) = bi-weekly increase of $1.62, weekly increase of $0.81
Tony Lepore National Benefits and EAP-Member Assistance Coordinator
October UBP Letter 10-8-18.pdf