The Company will extend until June
30December 31, 2009, the Group Benefits Program agreed to in the Collective Bargaining
Agreement of September 29, 2002, between the
Company and the July 1, 2006January 1, 2010,
or on such later date when specifically stated therein. The period of July
1, 2009 through December 31, 2009 will be a short plan year prior to the
transition to a calendar year plan beginning January 1, 2010.
11.2(a) Life
Insurance and Disability Benefits. The Company will pay
the full cost of the Life Insurance, Accidental Death and Dismemberment, Survivor
Income and Weekly Short-term Disability
Plans for eligible employees.
11.2(b) Medical
Benefits. The Company and the 20042010,
Company and employee contributions will be as follows:
11.2(b)(1) In regions where employees may
choose between Coordinated Care, Exclusive
Provider and/or Health Maintenance Organization plans or the
Traditional Medical Plan, the Company will pay the full cost plan
rate of the low-cost a Company specified
plan in the applicable region for eligible employees and
dependents for the term of the Agreement. For those employees and dependents whose
coverage is with another plan, employees will contribute seven (7) percent
of the plan rate determined by the Company on a pre-tax basis
the difference between the cost of the low-cost plan and the plan the employee
chooses.
11.2(b)(2) In regions where Coordinated
Care, Exclusive Provider and/or Health
Maintenance Organization plans are not available, the Company will pay the full
cost plan rate of
the Traditional Medical Plan for the term of the Agreement.
11.2(b)(3) The employee is required to
contribute an additional $100 each month for medical coverage under the Group
Benefits Program to enroll a spouse or same-gender domestic partner who is
eligible for medical coverage under another employer-sponsored plan and waives
such coverage. This $100 contribution
will not be required for a spouse or same-gender domestic partner who waived
coverage under another employer-sponsored plan prior to eligibility for medical
coverage under the Group Benefits Program, provided he or she enrolls at the
other plan’s next enrollment period or, if earlier, at an enrollment date
allowed by the other plan.
11.2(c) Dental
Benefits. The Company will pay the full cost plan rate of
either the Incentive Dental Plan,
Network Dental Plan or Prepaid Dental Plan.
For employees covered on or after July 1, 2003, the
Company will provide for the duration of this Agreement for eligible retired
employees and covered dependents of eligible retired employees the medical
benefits summarized in the document entitled Attachment B, effective July 1,
2003, or on such later date when specifically stated therein and subject to all
of the terms and conditions contained in or referred to in such Attachment
B. The program summarized in Attachment
B shall be referred to as the Retiree Medical Plan.
For
employees who retire during the term of this Agreement, the Company will
provide for eligible retired employees and covered dependents of eligible
retired employees:
11.3(a) until
December 31, 2009, or if applicable, the later effective date of Attachment B,
the retiree medical plan agreed to in
the collective bargaining agreement of September 29, 2005; and
11.3(b) from
January 1, 2010, or a later date specifically described in Attachment B as its
effective date, and for the duration of this Agreement, the medical benefits
summarized in the document entitled Attachment B, subject to all of the terms
and conditions contained in or referred to in Attachment B.
The program
summarized in Attachment B shall be referred to as the Retiree Medical
Plan. The period of July 1, 2009 through
December 31, 2009 will be a short plan year prior to the transition to a
calendar year plan beginning January 1, 2010.
Except as described
in 11.4(b) and 11.4(c),During the term of
this Agreement, the Company will share the cost of medical
coverage for current eligible retired employees
eligible to retire, employees on the active payroll, on layoff or
on leave of absence on June 30, 2002 2009
as follows:
11.4(a) Effective July 1, 20032009,
Company and retired employee monthly contributions will be as
follows:
For employees who
were hired prior to January 1, 1993, Ffor
any Coordinated Care, Exclusive Provider and/or
Health Maintenance Organization plan coverage, retired employees
will contribute $10 for a retired employee only, $20 for a retired employee and
spouse or same-gender domestic partner, $20
for a retired employee and child(ren), or $30 for a retired employee and
family. For employees who were
hired before January 1, 1993 for Traditional Medical Plan
coverage, retired employees will contribute $20 for a retired employee only,
$40 for a retired employee and spouse or same-gender
domestic partner, $40 for a retired employee and child(ren), or
$60 for a retired employee and family.
The Company will pay the cost plan rate of
each plan in excess of the amount contributed by retired employees.
11.4(b) For employees who are hired on
or after January 1, 1993, the Company contributions are limited to three and
one third percent of the cost ofplan rate for
the Coordinated Care, Exclusive Provider, and/or
Health Maintenance Organization plan or Traditional Medical Plan
the retired employee chooses per year of service for the duration of the
Agreement. Retired Those
retired employees pay the difference (the cost of the plan minus
the Company contributions). However, all
covered retirees they must
make contributions not less than the amount specified in Section 11.4(a).
11.4(c) The retired employee is required
to contribute $100 a month to enroll a spouse or same-gender
domestic partner in the
Retiree Medical Plan if the spouse or same-gender
domestic partner is eligible for coverage under another
employer-sponsored plan as an active employee and waives such coverage.
11.4(d) Company contributions will be
made only for an eligible retired employee who retires during the
term of this Agreement, provided the employee is receiving
benefits from The Boeing Company Employee Retirement Plan provided the employee
meets the eligibility requirements of the Retiree Medical Plan and
either authorizes deduction of the balance of plan rates, if any, from his or
her retirement check or makes arrangements with the Company to self-pay for
coverage. Such Company contribution will
continue for an eligible retired employee or eligible spouse or same-gender
domestic partner reduced by retired employee contributions
required under Sections 11.4(a) and 11.4(b) and the spouse or same
gender-domestic partner contribution in Section 11.4(c), if any,
until such eligible person attains 65 years of age or is earlier eligible for
Medicare or until this Agreement expires, if earlier,
and for a dependent child, until such dependent is no longer an eligible
dependent or earlier qualifies for Medicare, or until this Agreement
expires, if earlier.
The benefits summarized in the
Group Benefits Program and the Retiree Medical Plan shall be procured by the
Company under contracts and/or administrative agreements with insurance companies,
health care contractors or administrative agents which will be in the form
customarily written by such carriers and administrative agents, and the Group
Benefits Program and Retiree Medical Plan shall be subject to the terms and
conditions of such contracts and/or administrative agreements, consistent with
the summary in the Group Benefits Program or Retiree Medical Plan.
Such contracts and/or
administrative agreements will require the administrative agents to implement
pharmacy management programs, and to develop various programs and
procedures designed to contain costs based on those portions of the Group
Benefits Program and the Retiree Medical Plan which contain the requirement
that charges are covered only on the basis of medical necessity. Such cost containment programs or procedures
may be utilized to determine the medical necessity of the treatment itself, the
appropriateness of the services provided, the place of treatment or the
duration of treatment. The
administrative agents and the Company will announce each such program or
procedure before it is required or available to the affected employees or
retirees. Any such cost containment
program or procedure will not operate during the term of
this Agreement to reduce or deny the benefit properly due under
the Plans to any covered person or to shift the costs covered
under the Plans to the covered personany eligible active
employee or employee who retires during the term of this Agreement, or to his
or her dependants.
During the term of this
Agreement, the Company shall not, as to any eligible
active employee or employee who retires during the term of this Agreement (or
to his or her dependants) change the benefits or increase the
deductibles or copayments shown in Attachment A and Attachment B, except as
required by law, without approval of the Union, and in the event the Company
makes such change without the Union’s approval, such action shall be subject to
the provisions of Article 19 of this Agreement.
The failure of an insurance company, health care contractor or
administrative agent to provide for any of the benefits for which it has
contracted shall result in no liability to the Company, nor shall such failure
be considered a breach by the Company of the obligations which it has undertaken
by this Agreement. However, in the event
of any such failure, the Company shall immediately evaluate the need to replace
the services of such insurance company, health care contractor, or
administrative agent.
The Group Benefits Program and the Retiree Medical Plan
shall be administered by the insurance companies, health care contractors or
administrative agents with whom the Company enters into contractual
relationships for the purpose of providing and/or administering the coverage
contemplated by the Group Benefits Program or the Retiree Medical Plan and
the Employee Benefit Plans Committee of The Boeing Company, and,
except as provided in Section 11.5 above, no question or issue arising under
the administration of such Group Benefits Program or the Retiree Medical Plan
or the contracts and/or administrative agreements identified therewith shall be
subject to the grievance procedure or arbitration provisions of Article 19 of
this Agreement. No new medical or dental
plans will be added or existing plans deleted without prior consultation and
notification of the
Copies of the policies, contracts, and administrative
agreements executed pursuant to this Article 11 shall be furnished to the Union
and the coverages and benefits indicated in the Group Benefits Program or the
Retiree Medical Plan, the rights of eligible employees in respect of such
coverages, and the settlement of all claims arising out of such coverages shall
be in accordance with the provisions, terms and rules set forth in such
contracts.
If during the term of this Agreement there is mandated by
federal or state government a program that affords to employees and/or retirees
covered by this Agreement similar benefits (such as but not limited to medical
benefits and dental benefits) to those that are afforded by this Agreement,
benefits afforded by this Agreement will be replaced by such federal or state
program. The Company will comply with
the provisions for the furnishing of such program to the extent required by
law. No question or issue regarding the
level of benefits under the state or federal program shall be subject to the
grievance procedure or arbitration provisions of Article 19 of this Agreement.