| Article XII. MILA |
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ARTICLE XII MILA Section 1. Management-ILA Managed Health Care Trust Fund. The Management-ILA Managed Health Care Trust Fund ("MILA") is a joint labor-management, Taft-Hartley trust fund managed by an equal number of Management and Union trustees to administer an employee welfare benefit healthcare plan covering active and retired dockworkers covered by this Master Contract and their dependents in all ports except the port of Miami/Port Everglades. Section 2. Funding. MILA is a defined contribution welfare plan that is funded by the following contributions: (a) CR-4 Tonnage Contributions. During the term of this Master Contract tonnage contributions to the CR-4 Fund for the funding of MILA shall be increased as follows: Effective Date Increase October 1, 2004 $0.25 per ton, raising the contribution rate from $0.20 to $0.45 per ton. October 1, 2005 $0.75 per ton, raising the contribution rate from $0.45 to $1.20 per ton. October 1, 2009 $0.25 per ton, raising the contribution rate from $1.20 to $1.45 per ton. (b) Second Container Royalty Contributions. During the term of this Master Contract, the Second Container Royalty assessment in the amount of $1.00 per weight ton of containerized cargo not stuffed or stripped by ILA-represented labor (or such lesser amount as may be required under the Stein Award, which is attached to this Master Contract as Appendix E, for containerized cargo carried on vessels that are not full container vessels) shall be paid to MILA to be used exclusively to fund the managed healthcare program administered by MILA. The Container Royalty Cap provisions set forth in Article XI, Section 4 of this Master Contract shall not apply to the Second Container Royalty contributions to MILA. 23 (c) Hourly Contributions. During the term of this Master Contract, $5.00 of the hourly contributions for local pension, welfare, and other employee fringe benefits set forth in Article IV, Section 1 of this Master Contract shall be paid to MILA. Section 3. Second Container Royalty Contributions. The Second Container Royalty contributions shall be used exclusively for the funding of MILA healthcare benefits in all ports and districts covered by this Master Contract that participate in the MILA healthcare plan. If the South Atlantic or the West Gulf continue to use the Second Container Royalty contributions for other purposes, then, either or both such areas must pay to the trustees of MILA the equivalent of said Second Container Royalty contributions in total dollars out of the 1993 dollar contributions, if they are being used for welfare purposes, as well as out of other fringe benefit contributions, such as the local fringe benefit contributions set forth in Article IV, Section 1 of this Master Contract and the portion of the container royalties in excess of the benchmarks distributed to the Local Escrow Fund in accordance with Article XI, Section 4(c) of this Master Contract. The trustees in these areas shall remit monthly payments so that MILA has received the same amount that it would have received had the Second Container Royalty contributions been made to the MILA plan. Section 4. Eligibility of Active Employees. The MILA plan in effect on September 30, 2004, shall be amended to incorporate the following eligibility provisions for active employees: (a) To be eligible to be a participant entitled to coverage under MILA’s Premier Plan for the calendar year commencing January 1, 2006, and for each of the succeeding calendar years during the term of this Master Contract, an employee must work or be credited with at least 1,300 hours of service in the immediately preceding contract year. (b) To be eligible to be a participant entitled to coverage under MILA’s Basic Plan, for the calendar year commencing January 1, 2006, and for each of the succeeding calendar 24 years during the term of this Master Contact, an employee must work or be credited with at least 1,000 hours of service in the immediately preceding contract year. (c) To be eligible to be a participant entitled to coverage under MILA’s Core Plan for the calendar year commencing January 1, 2006, and for each of the succeeding calendar years during the term of this Master Contract, an employee must work or be credited with at least 700 hours of service in the immediately preceding contract year. Section 5. Eligibility of Retirees. The MILA plan in effect on September 30, 2004, shall be amended to incorporate the following eligibility provisions for retirees: (a) During the term of this Master Contract any retiree who is covered under MILA’s Premier Plan as a non-Medicare eligible retiree on September 30, 2004, shall continue to be covered under MILA’s Premier Plan, as may be modified, until the retiree becomes eligible for Medicare at which time the retiree’s MILA benefits will be limited to Medicare wraparound benefits. (b) Any active employee who during a six-month window period, commencing October 1, 2004, and ending on March 31, 2005, elects early retirement under the terms of the local pension plan in effect as of September 30, 2004, and actually retires on or before March 31, 2005, shall be eligible during the term of this Master Contract to be covered by MILA’s Premier Plan, as may be modified, until the retiree becomes eligible for Medicare at which time the retiree’s MILA benefits will be limited to Medicare wraparound benefits. (c) After the window closes on March 31, 2005, until the expiration of the term of this Master Contract, to be eligible for MILA benefits as a non-Medicare eligible retiree, a retiree must be fifty-eight (58) years of age with twenty- five (25) or more years of service, as defined by the local 25 pension plan, and such retiree will qualify for coverage under MILA’s Basic Plan, as may be modified, until such retiree becomes sixty-two (62) years of age, when the retiree will become eligible to be covered under MILA’s Premier Plan, as may be modified, until such retiree becomes eligible for Medicare, at which time such retiree’s MILA benefits will be limited to Medicare wraparound benefits. (d) Any former employee who no later than September 30, 2004, is no longer in the industry but has sufficient service to qualify for a vested pension benefit upon the attainment of the age of sixty-five (65) and who is also entitled to receive MILA benefits as of September 30, 2004, shall be eligible to receive MILA Medicare wraparound benefits when he attains the age of sixty-five (65). Any individual employee who leaves the industry after September 30, 2004, without retiring and who is eligible for a vested pension benefit when he leaves the industry shall not be eligible to receive any MILA benefits when he retires. Section 6. Plan Amendments. The MILA plan in effect on September 30, 2004, shall be amended to adopt the following plan provisions: (a) The co-pay shall be $15.00 per visit to a primary care physician ("PCP") and $30.00 per visit to a specialist in the Premier Plan and $25.00 per visit to a PCP and $40.00 per visit to a specialist in the Basic Plan, but there shall be no co-pay for an annual physical. (b) The payment rate for out-of-network services shall be sixty (60) percent of reasonable and customary eligible charges, and the out-of-pocket annual benefit limits that apply to out-of-network charges shall be $6,500 per individual and $13,000 per family. (c) There shall be a $500 annual pharmacy family deductible for all active employees and all retirees (including Medicare-eligible retirees) for brand-name drugs only 26 except for those brand-name drugs for which there is no comparable generic substitute as determined by the MILA trustees. This deductible replaces the $500 pharmacy deductible that is currently in place in the MILA plan. Section 7. Creation of Core Plan. The MILA trustees shall place in effect by January 1, 2006, MILA’s Core Plan, which shall provide lesser benefits than those provided by MILA’s Basic Plan. |