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 Union for eligible employees and medical benefits and dental
benefits for covered dependents of eligible employees as summarized in the
document entitled Attachment A effective 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 Disability Plans for eligible employees.
11.2(b) Medical
Benefits. The Company and the 2004
11.2(b)(1) In regions where employees may
choose between Coordinated Care and/or Health Maintenance Organization plans or
the Traditional Medical Plan, the Company will pay the full cost of the
low-cost plan in the applicable region for eligible employees and
dependents. For those employees and
dependents whose coverage is with another plan, employees will contribute 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 and/or Health Maintenance Organization plans are not available, the
Company will pay the full cost of the Traditional Medical Plan.
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 of either
the Incentive 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.
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), the Company will share the cost of medical
coverage for current eligible retired employees, employees on the active
payroll, on layoff or on leave of absence on June 30, 2002 as follows:
11.4(a) Effective July 1, 2003, Company
and retired employee contributions will be as follows:
For any Coordinated Care/Health
Maintenance Organization plan coverage, retired employees will contribute $10
for a retired employee only, $20 for a retired employee and spouse, $20 for a retired
employee and child(ren), or $30 for a retired employee and family. For Traditional Medical Plan coverage,
retired employees will contribute $20 for a retired employee only, $40 for a
retired employee and spouse, $40 for a retired employee and child(ren), or $60
for a retired employee and family. The
Company will pay the cost 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 of the Coordinated Care/Health Maintenance
Organization plan or Traditional Medical Plan the retired employee chooses per
year of service for the duration of the Agreement. Retired employees pay the difference (the
cost of the plan minus the Company contributions). However, all covered retirees 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 in the Retiree Medical Plan if
the spouse 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 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 reduced by retired employee
contributions required under Sections 11.4(a) and 11.4(b) and the spouse
contribution in Section 11.4(c), if any, until such eligible person attains 65
years of age or is earlier eligible for Medicare, and for a dependent child,
until such dependent is no longer an eligible dependent or earlier qualifies
for Medicare.
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 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 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 person.
During the term of this
Agreement, the Company shall not 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.