NCRO and Chrysler meet to discuss health care and benefit programs for 2010

Chrysler outlines health care, benefit plans for 2010 - “Good News and Bad News” for retirees

Members of the NCRO met with representatives of Chrysler Human Resources on Wednesday, Oct. 28 for a briefing on planned changes for health care and benefit programs for 2010, which will be released by Chrysler last week.

The good news is that relatively few changes will be made in retiree health care plans for next year. The bad news is that Chrysler reaffirmed that it will cancel the Car Lease Program for retirees at the end of 2009, as announced earlier. Chrysler has decided to reinstitute a “scaled down” Car Lease Program for salaried employees, but pointed out to NCRO that it would not reverse the decision on the retiree program because of “economic realities.” They said retirees at GM and Ford have no equivalent Car Lease Program.

Chrysler officials characterized the health care changes for 2010 as “minimal.”

65+ Retirees - For retirees 65 and over, the healthcare plan is also unchanged. Company contributions to Health Care Spending Accounts will stay at 2009 levels -- $1,860 for retirees and surviving spouses, and $1,750 for spouses of retirees. Use the following link to help guide you in your decisions. www.medicare.gov/Default.asp

Pre 65 Retirees - Retirees under 65 will still maintain one PPO and two HSA (Health Savings Account) choices. Company contributions to those plans remain in place. Although premiums for some higher income pensioners will go up somewhat as in past years, some retirees will actually see a decrease in premiums. This “ability to pay” concept is similar to the Company’s philosophy for active salaried employees, according to Chrysler. The Company also indicated that retirees’ “out of pocket” expense for HSA I will be increased, although no details were provided.

Dental and vision plans - for salaried retirees will continue for 2010 and remain unchanged, and 2010 is an “open enrollment” year for dental.

Additionally in recognition of the swine flu (H1N1) issue, Chrysler will institute a one-year exception to cover vaccines for the regular flu as well as the swine flu (subject to meeting deductibles). Normally, only one flu shot per year is covered.

Enrollment - According to Chrysler, pre Medicare retirees will receive customized information packets on their 2010 enrollment options this week, and the sign up period will be from Nov. 4 – 18 for online enrollment, or Nov. 9 – 18 for telephone enrollment through Benefits Express.

NCRO leadership will continue to seek meetings with Chrysler management on key issues for salaried retirees with the hope that Chrysler will recognize the importance of a strong, loyal retiree network.