March 2009

To: Local Unions and Employers with employees in the

NAS Metal Trades Welfare Fund

From: The Board of Trustees

As you almost certainly know, health care costs continue to rise on a nationwide basis. Since 2005, the NAS Metal Trades Welfare Fund has managed to provide health care benefits with no increase in the hourly contribution. The finances of the NAS Metal Trades Welfare Fund remain sound, but the need for additional contributions exists.

Be advised that effective September 1, 2009, the contribution requirement for each level of coverage will increase by $0.25 per hour. Therefore, for work performed as of September 1, 2009, and after, the contribution rates will be as follows:

Plan A $3.00 /hour

Plan B $2.70 /hour

Plan C $2.15 /hour

The Plan provides that employees will receive Plan A or B benefits as of September 1st if the contribution rate is sufficient. Any employee covered by a collective bargaining agreement that provides for a contribution rate that is not sufficient for Plan A or B, will be covered by Plan C until the contribution rate applicable to the employee increases, or the collective bargaining agreement terminates or the employer’s participation in the Plan is terminated by the Trustees.

The Trustees will continue to review the financial status of the NAS Metal Trades Welfare Fund and advise you if additional contributions will be required effective September 1, 2010.