November 2002

During the first seven months of 2007, contribution and investment income to the NASI Welfare Fund totaled almost $98 million. Expenses (mostly your medical and dental claims) totaled almost $81 million. The Trustees are very pleased to see this gain of about $17 million. The Trustees also recognize that the main reason for this favorable financial result is the increased contribution rate that has been negotiated by the bargaining parties.

Deductibles, co-insurance and out-of-pocket maximums of the NASI Welfare Plan will remain at 2003-2007 levels for 2008.

Below are changes in the cost of certain coverages as well as changes to certain provisions of the NASI Welfare Plan that have been made in the interest of the participants of the Plan.

Coverage for Birth Control

Effective January 1, 2008, in recognition of the consistently favorable financial experience of NASI Welfare Fund, the Trustees are pleased to add birth control coverage for female participants and spouses. Coverage will include prescription drugs and devices requiring a prescription for the purpose of birth control. In addition, physician care associated with the administration of such drugs or devices that is generally accepted as appropriate will be covered by the Plan.

Pensioner Medical Coverage

Pensioners and beneficiaries who do NOT have Medicare

Some years ago, it was announced that in the coming years, pensioners and beneficiaries will be asked to pay an increasing portion of the cost of their coverage eventually reaching the goal of retirees paying 50% of the cost of retiree coverage. In 2007, retirees were asked to pay 44% of the estimated 2007 cost of benefits. Although it remains the intention of the Trustees to eventually reach that 50% goal, the Trustees have agreed to hold the percentage at the 44% level for 2008. At this time, it is their intention to reach the 50% goal in 1% steps beginning 2009.

Even though retirees will be asked to pay 44% of the projected cost, the cost to retirees for medical coverage will increase because the estimated cost of coverage in 2008 is expected to be higher than this year’s cost. The monthly self-payment for pensioners or beneficiaries who are not yet eligible for Medicare will be increased from $595 per month to $675 per month effective January 1, 2008, which is 44% of the projected 2008 cost of benefits for retirees who are not yet eligible for Medicare.

Pensioners and beneficiaries whose Local Union has a Retired Employee Subsidy Account (RESA) and who are eligible for their local union’s RESA will not see this change in the amount deducted from their pension because their Local Union RESA is paying some or all of the increased cost of coverage.

Pensioners and beneficiaries WITH Medicare

In keeping with the policy as stated above, the monthly self-payment for pensioners or beneficiaries who became eligible for Medicare before 2002 will be increased from $235 per month to $245 per month effective January 1, 2008. For those pensioners or beneficiaries who become eligible for Medicare after 2001, the monthly self-payment cost for coverage will increase from $285 per month $295 per month effective January 1, 2008. The average cost paid by all Medicare eligible retirees will be 44% of estimated 2008 cost of benefits for Medicare eligible retirees.

Monthly Cost for Those Participating in NASI Welfare Fund through Participation Agreements

The premium for the NASI Welfare Fund for those participating in the Fund through participation agreements (e.g. owner members) will increase to $1,208.00 per month.

Contribution requirements for Level 2 and Level 3 coverages

The contribution requirement for Level 2 medical only coverage will be $5.60 per hour effective January 1, 2008. The contribution requirement for Level 3 medical only coverage will be $5.42 per hour effective January 1, 2008. The cost for the additional benefits associated with Level 2 coverage will remain $0.55 for Dental, $0.07 for Vision, $0.07 for Disability and $0.02 for Life. Additional benefits are not available with Level 3 coverage.

REMINDERS

Coordination of Benefits with Medicare

The NASI Welfare Plan requires that individuals who are eligible for Medicare Part B benefits sign up for those benefits.

Annual Reminder regarding Women’s Health and Cancer Rights Act of 1998

Do you know that the NASI Welfare Plan, as required by the Women’s Health and Cancer Rights Act of 1998, provides benefits for mastectomy related services, including all stages of reconstruction and surgery to achieve symmetry between the breasts, prostheses, and complications resulting from a mastectomy, including lymphedema?

Call the Fund Office at 1-800-638-2603 for more information.