Effective July 1, 2016, rail employees covered under The NRC/UTU Health and Welfare Plan and The Railroad Employees National Health and Welfare Plan will see their monthly Health and Welfare contribution increased from the current $198.00 per month, to $228.89 per month.
Why the increase?
Since July 1, 2012 and pursuant to provisions of the September 16, 2011 National Rail Agreement, the health and welfare contribution was frozen at $198.00 per month. That agreement also contained provisions to increase the contribution amount to a maximum of $230.00 per month, effective July 1, 2016.
A national rail agreement is currently being negotiated and the new monthly contribution amount will remain in effect until modified.
How is the increase determined?
The formula used in determining the monthly employee contribution takes into account the Carriers Monthly Payment Rate for everything other than on-duty injury health care benefits, and the payment rates for benefits under The Railroad Employees National Dental Plan and The Railroad Employees National Vision Plan. The employee contribution is 15 percent of such monthly payment rates.
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