November 2002

As of July 1, 2009, the Trustees reduced the contribution requirement to the NASI Welfare Fund for Level 1 benefits by $0.40 per hour. Favorable financial experience in recent years made this change possible. Be assured that the Trustees will closely monitor the finances of the NASI Welfare Fund.

One of the things that makes the NASI Welfare different from most single employer health benefit plans is our expectation that the NASI Welfare Fund will provide coverage for participants and their spouses for the rest of their lives – even through retirement. While coverage of retirees and beneficiaries has never been guaranteed and could be changed or terminated, the Trustees wish to take advantage of the likelihood of very long term coverage by encouraging you to become healthier. Tobacco use remains the single largest preventable cause of disease and premature death in the United States. For those who smoke or otherwise use tobacco products, we are sponsoring an opportunity to “Quit for Life”. Smokers – look at the enclosed brochure – take that first step toward quitting.

Quit For Life®

The Quit For Life® Program has resources to help you quit. The NASI Welfare Fund will pick up the entire cost of your participation (except for your 25% prescription coinsurance should you choose to use certain prescription drugs, like Chantix or Zyban – prescriptions not otherwise covered except within this new program). With their counseling, your chances of quitting for life are 8 times greater than trying to quit on your own. More than 500,000 tobacco users have already been helped using the Quit For Life Program. It works.

Call today for FREE coaching at 1.866.QUIT.4.LIFE (866.784.8454) or visit www.quitnow.net.

If you choose to participate, the fact of your participation will not be shared with anyone except for Fund staff and professionals (and, if necessary, Medco) as necessary to follow up on long-term cost benefits of the program, in keeping with federal privacy law.

The Great American Smokeout™

Thursday, November 19, the Great American Smokeout™, is your opportunity to join others and take the first step toward quitting tobacco, even if it’s just for a day. Make the third Thursday in November a day to remember!

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.

Total Disability Extension

If you qualify for a Social Security Disability Award, you now have nine months from the date you receive the award to provide the Fund Office with a copy of the award in order to have benefits restored or continued under the Total Disability Extension provision of 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. The change below is projected to have retirees pay, as a group, 46% of the cost of providing medical coverage to retirees. The assets of the NASI Welfare Fund pay the remainder of the cost.

The monthly self-payment for pensioners or beneficiaries who are not yet eligible for Medicare will increase to $745 per month beginning July 1, 2010.

Pensioners and beneficiaries whose Local Union has a Retired Employee Subsidy Account (RESA) and who are eligible for their local union’s RESA will continue to benefit from their Local Union’s subsidy of the cost of their coverage. If your Local Union plans to change the amount of the subsidy, you will be advised in a separate announcement.

Pensioners and beneficiaries WITH Medicare

The Trustees have also determined that no change in the monthly cost to retirees and beneficiaries with Medicare will be needed in 2010 to continue toward their goal to have retirees and beneficiaries pay 50% of the cost of providing medical coverage in the coming years. Therefore, the monthly self-payment for pensioners or beneficiaries who became eligible for Medicare before 2002 will continue to be $245 per month for 2010. Similarly, for those pensioners or beneficiaries who become eligible for Medicare after 2001, the monthly self-payment cost for coverage will continue to be $295 per month for 2010.

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 $1,216.00 per month.

Contribution requirements for Level 2 and Level 3 coverages

The contribution requirement for Level 2 medical only coverage will be $6.17 per hour effective January 1, 2010. The contribution requirement for Level 3 medical only coverage will be $5.91 per hour effective January 1, 2010. The cost for the additional benefits associated with Level 2 coverage will be $0.60 for Dental, and will remain $0.08 for Vision, $0.08 for Disability and $0.02 for Life. Additional benefits are not available with Level 3 coverage.

REMINDERS

Coordination of Benefits with Medicare

Medicare is the primary coverage for retirees, dependents of retirees and beneficiaries. The NASI Welfare Plan requires that individuals who are eligible for Medicare Part B benefits sign up for those benefits. Additionally, if an individual is not entitled to cost-free Medicare Part A, that individual must also purchase Part A coverage from Medicare when they become eligible to do so at age 65.

If you or your spouse are eligible for Medicare by virtue of Disability, be sure that the NASI Welfare Fund know of your Medicare status.

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.