Summary Plan Description and Plan Document
 2005 Edition

PIPE FITTERS’ WELFARE FUND">

Summary Plan Description and Plan Document
 2005 Edition

PIPE FITTERS’ WELFARE FUND, LOCAL 597

Fund Office
45 North Ogden Avenue
Chicago, Illinois  60607
Telephone: (312) 633-0597
www.pf597.org/WelfareFund

BOARD of TRUSTEES
(Administrator as Defined by Law)

Union Trustees

Employer Trustees

Mr. James Buchanan
Mr. Curtis L. Cade
Mr. John E. Kuszynski
Mr. Gregory J.Watson

Mr. Frederick S. Oyer
Mr. John D. Curran
Mr. Victor W. Giomettti
Mr. Stephen Lamb 

FUND OFFICE MANAGER and AGENT for the SERVICE of LEGAL PROCESS
Peter A. Driscoll
 

FUND COUNSEL
Johnson, Smetters & Krol LLC                  Connelly Sheehan Moran
 

CONSULTANT
The Segal Company
 

CERTIFIED PUBLIC ACCOUNTANTS
Clark, Hammel & Leake, LLC


 

A Message from the Board of Trustees

We are pleased to provide you with this updated booklet describing your  health benefits under the Pipe Fitters' Welfare Fund Local 597, effective January 1, 2005 unless otherwise indicated.  Although this booklet is meant to be an easy-to-understand description of your Plan benefits, it also serves as the Plan Document, which is the Plan’s official Rules and Regulations.

This booklet describes the benefits and the Plan’s eligibility rules.  The following are the significant changes that were made to your Plan of Benefits since the booklet was last printed:

1.   The Plan’s claims and appeals rules (Sec. 18) and privacy procedures (Sec. 20.14) have been revised in keeping with recent legislation.

2.   The Death Benefit and the Accidental Death and Dismemberment Benefit for Active Employees have been raised to a maximum of $10,000 per benefit. (Sec. 4)

3.   The Weekly Accident and Sickness Disability Benefit has been increased from $100 per week to $350 per week. There is a limit of two periods of disability during any 60 month period. (Sec. 6)

4.   The maximum Comprehensive Major Medical Expense benefit per disability has been increased to $1,000,000. (Sec. 2)

5.   The hours required for quarterly eligibility increased to 375 hours effective October 31, 2005. (Sec. 3.01D)

6.   Retirees who are otherwise eligible, are now charged a self-pay amount for Retired Employee coverage called the Standard Retiree Premium. (Sec. 3.02 B)

7.   The Standard Retiree Premium applies to disability pensioners except substantially employed disability pensioners ($24,000 per year) who will be charged a higher premium. (Sec. 3.02 C)

8.   Effective January 1, 2006, a subsidized COBRA premium  (50% of the regular COBRA premium) will be available for up to six months for an Employee who is available for work in the industry. (Sec. 3.03 E)

9.   The calendar year deductible for active employees is now $300 per person with a maximum 3 deductibles per family. (Sec.2.01)

10. The Plan co-pay for PPO fees is 85% and for Non-PPO fees the Plan co-pay is 75%. (Sec. 2.01 and Sec. 2.02)

11. Out-of-pocket maximum per calendar year is $1,000.00 per person for non-PPO expenses. (Sec. 2.01 & Sec. 2.02)

12. The participant co-pay for Prescription Drug Benefits is 20% with certain minimums that apply to the retail and mail order programs. (Sec. 2.04)

13. Certain Specialty injectable prescription drugs are now covered exclusively through Curascript, under a contract with Express Scripts. There is now a separate injectable specialty drug benefit. (Sec. 2.04 and Sec. 9.06)

14. Coverage has been expanded to add medical care and treatment by a surgical assistant or surgical technician who assists a Surgeon in performing surgical procedures covered by the Plan. (Sec. 7.08 A 24)

15. Licensed Clinical Professional Counselors and Licensed Clinical Social Workers have been added to the list of professionals (Physician, psychiatrist, and licensed psychologist) whose services are covered for the outpatient treatment of mental and nervous disorders and chemical dependency. (Sec. 7.08 A 15)

16. The Plan has also adopted a Dental PPO (Sec. 10)  and an Employee Assistance Program (Sec. 12) and clarified coverage of Hospice (Sec. 14), Home Birth (Sec. 2.01 and Sec. 2.02), and Hearing Aid Benefits (Sec. 13).  

17. Effective January 1, 2005, the limiting age for a dependent child has been changed from 19 to the end of the calendar year in which the child attains age 18. This change was required by the Working Families Tax Relief Act of 2004. (Sec. 19.01 G).

18. The Plan has also been clarified to limit coverage of dependent children to your natural children, legally adopted children, and step children when certain conditions are met. (Sec. 19.01 G).

Important terms used throughout this booklet are initial upper cased and defined in the Plan. Please keep this booklet with your other important papers and share this information with your family.  If you have questions about information in this booklet, you should contact the Fund Office.

This booklet replaces and supersedes any previous written explanation of the Plan.
  

IMPORTANT REMINDER

Tell your family, particularly your spouse, about this booklet and where it is located. Please notify the Fund Office promptly if you change your address. Only the full Board of Trustees is authorized to interpret the benefits described in this booklet. No Employer, the Union, nor any representative of any Employer or Union, in such capacity, is authorized to interpret this Plan, nor can any such person act as agent of the Trustees.

The Trustees reserve the right to amend, modify or discontinue all or part of this Plan whenever, in their judgment, conditions so warrant.  You will be notified in writing of any plan changes. 

 

SECTION 1: LIFE EVENTS

  1.01 Life Events in General
  1.02 Getting Married
  1.03 Adding a Child by Birth or Adoption
  1.04 Divorce or Legal Separation
  1.05 Child Loses Eligibility
  1.06 Your Spouse Loses a Job or Takes a New Job
  1.07 Leave of Absence.
  1.08 In the Event of Your Disability
  1.09 In the Event of Your Death
  1.10 When You Stop Working.
  1.11 When You Retire
   
SECTION 2: SCHEDULES OF BENEFITS
  2.01 Schedule of Benefits for Active Employees
  2.02 Schedule of Benefits for Retired Employees Not Yet Eligible for Medicare
  2.03 Schedule of Benefits for Retired Employees Eligible for Medicare
  2.04 Schedules for Prescription and Specialty Drug Benefits for Active and Retired Employees
   
SECTION 3: ELIGIBILITY
  3.01 Eligibility for Active Employee Benefits
  3.02 Retired Employee Eligibility
  3.03 COBRA Continuation Coverage
   
SECTION 4: DEATH BENEFIT
  4.01 Death Benefit for Active Employees
  4.02 Death Benefit for Retired Employees
  4.03 Designating Your Beneficiary
   
SECTION 5: ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) BENEFITS
  5.01 AD&D Benefits for Active Employees Only.
  5.02 Limitations on AD&D Benefits
   
SECTION 6: WEEKLY ACCIDENT AND SICKNESS DISABILITY BENEFITS
  6.01 Weekly Accident and Sickness Disability Benefits for Active Employees Only
  6.02 When Your Weekly Accident and Sickness Disability Benefits Begin
  6.03 Limitations on Your Weekly Accident and Sickness Disability Benefits
   
SECTION 7: COMPREHENSIVE MAJOR MEDICAL EXPENSE BENEFIT FOR ACTIVE EMPLOYEES
                   AND RETIRED EMPLOYEES NOT YET ELIGIBLE FOR MEDICARE
  7.01 Eligibility
  7.02 The Deductible
  7.03 Percentage of Benefits Payable
  7.04 Out-of-Pocket Maximum
  7.05 Maximum Benefit Payable
  7.06 Preferred Provider Organization (PPO)
  7.07 Case Management
  7.08 Covered Expenses and Exclusions
  7.09 Extension of Medical Benefits.
   
SECTION 8: SUPPLEMENTAL MEDICAL BENEFITS FOR RETIRED EMPLOYEES ELIGIBLE FOR MEDICARE
  8.01 Eligibility for Supplemental Medical Benefits
  8.02 Covered Supplemental Medical Benefit Expenses
  8.03 Expenses Not Covered
   
SECTION 9: PRESCRIPTION DRUG BENEFITS
  9.01 Eligibility of Active Employees and Retired Employees
  9.02 Covered Drugs
  9.03 Drugs Not Covered
  9.04 The Retail Card Program
  9.05 The Mail Order Program
  9.06 Specialty Drug Benefits
   
SECTION 10: DENTAL EXPENSE BENEFIT FOR ACTIVE EMPLOYEES
  10.01 Eligibility for Dental Expense Benefits
  10.02 Predertermination of Dental Benefits
  10.03 Alternate Course of Dental Treatment
  10.04 Percentage of Dental Benefits Payable
  10.05 Covered Dental Expenses.
  10.06 Orthodontia Care Coverage
  10.07 TMJ Coverage
  10.08 Extension of Dental Benefits
  10.09 Limitations and Exclusions on Payment of Dental Benefits
   
SECTION 11: VISION CARE EXPENSE BENEFIT FOR ACTIVE EMPLOYEES
  11.01 Eligibility for Vision Care Expense Benefits
  11.02 Covered Vision Care Expenses
  11.03 Limitations and Exclusions on Vision Care Benefits
   
SECTION 12: THE EMPLOYEE ASSISTANCE PROGRAM BENEFIT
  12.01 Eligibility
   
SECTION 13: HEARING AID BENEFIT (FOR ELIGIBLE EMPLOYEES AND DEPENDENTS)
  13.01 Eligibility
   
SECTION 14: HOSPICE BENEFIT
  14.01 Eligibility
   
SECTION 15: GENERAL PLAN EXCLUSIONS
  15.01 Exclusions from Coverage
   
SECTION 16: COORDINATION OF BENEFITS
  16.01 Benefits Are Coordinated
  16.02 Another Group Plan Defined
  16.03 How Benefits are Paid
  16.04 Order of Benefit Payment
  16.05 Coordination of Benefits Implementation Rules
  16.06 Coordination of Benefits with Medicare
   
SECTION 17: SUBROGATION OR REIMBURSEMENT
  17.01 Reimbursement to the Plan
  17.02 Third Parties Defined
  17.03 Your Responsibilities
  17.04 If You Are Reimbursed by a Third Party
   
SECTION 18: FILING CLAIMS AND APPEALS
  18.01 How to File a Claim
  18.02 When Claims Must Be Filed
  18.03 Where to File Claims
  18.04. Authorized Representatives
  18.05 Benefit Payment to an Incompetent Person
  18.06 Claim Rules for All Medical and Hospital Claims submitted to local Blue Cross Blue
         Shield Plan, Supplemental Medical, Dental, and Vision and Hearing Aid Benefits
  18.07 Weekly Sickness and Accident Disability Claims
  18.08 Notice of Denial of Claim or Adverse Benefit Determination
  18.09 Your Right to Request a Review of a Denied Claim
  18.10 Review Process
  18.11 Timing of Notice of Decision on Appeal
  18.12 Notice of Decision on Review
  18.13 Physical Examination
  18.14 Payment of Claims
  18.15 Misstatement by Plan Participant
  18.16 Workers’ Compensation
  18.17 Exhaustion of Your Remedies
  18.18 Authority of the Trustees
   
SECTION 19: DEFINITIONS
  19.01 Definition of Plan Terms
   
SECTION 20: ADDITIONAL PLAN INFORMATION
  20.01 Plan Name
  20.02 Board of Trustees
  20.03 Plan Sponsor and Administrator
  20.04 Plan Numbers
  20.05 Agent for Service of Legal Process
  20.06 Source of Contributions
  20.07 Collective Bargaining Agreement
  20.08 Trust Fund
  20.09 Plan Year
  20.10 Type of Plan
  20.11 Gender
  20.12 Assignment
  20.13 Amendment and Termination
  20.14 Privacy Policy
  20.15 The Plan’s Use and Disclosure of Your Protected Health Information (PHI)
  20.16 Statement of ERISA Rights
 

Section 1: Life Events

1.01     Life Events in General.

At some point in your life, you will experience a life event that impacts health care coverage for you and your Dependents.  You may have experienced some of these life events already.  Life events such as these can affect your benefit coverage:

 

·    Marriage

·    Birth or adoption of a child

·    Divorce or legal separation

·    Your child reaches the maximum age for coverage

·    Your spouse loses a job or starts a new job

·    Medical leave

·    Military duty

·    You become disabled

·    Your death

·    Retirement

·    You stop working

 

Your benefits are designed to adapt to your needs at different stages of your life. This section describes how your coverage is affected when these different events occur.

1.02     Getting Married.
 
When you get married, your spouse is eligible for medical, dental, prescription drug, and vision care benefits. Once you provide the required information about your spouse, coverage for your spouse begins on the date of your marriage, provided you are eligible for benefits. If your spouse is covered under another group medical plan, you must report that other coverage to the Fund Office so that benefits may be coordinated with your spouse’s other coverage. You may want to consider changing your beneficiary designation for your Death Benefit and Accidental Death and Dismemberment Benefit.

1.03     Adding a Child by Birth or Adoption.

Your natural born child will be eligible for coverage on the date of birth. If you adopt a child or have a child placed with you for adoption, coverage will become effective on the date of placement as long as you are responsible for health care coverage and your child meets the Plan’s definition of a Dependent child. Stepchildren who live in your home are eligible for coverage on the date of your marriage, provided that you can provide satisfactory proof that:  a) they are living in your home and b) they are financially dependent on you for support and c) another party is not responsible for providing health coverage.

1.04     Divorce or Legal Separation.

If you and your spouse obtain a legal separation or divorce, your spouse will no longer be eligible for coverage as a Dependent under the Plan.  However, your spouse may elect to continue coverage under COBRA for up to 36 months. See  Section 3.03 for additional information and the requirements for electing COBRA Continuation Coverage.

You should contact the Fund Office if a Qualified Medical Child Support Order (QMCSO) has been issued as a result of your divorce or legal separation. A QMCSO may affect benefit coverage for your Dependents. Therefore, it is important to notify the Fund Office immediately to avoid unnecessary delays in claim payments or denial of benefits.

1.05     Child Loses Eligibility.

In general, your child is no longer eligible for coverage when your child is no longer dependent on you for support or reaches age 19 (age 23 if a full-time student). However, if your child is mentally or physically disabled before reaching age 19 and continues to be mentally or physically disabled and dependent on you for more than half of their support and maintenance, that child will continue to be covered as your Dependent. You should notify the Fund Office immediately when your child is no longer eligible for coverage.

Your Dependent child may consider applying for COBRA coverage as your child nears the age of 19 or 23 (if a full-time student).  Your Dependent child may, if eligible, elect to continue coverage under COBRA for up to 36 months.  However, if you do not notify the Fund Office that your child is no longer a Dependent within 60 days of the time that your child loses Dependent status, your child will not be eligible to elect COBRA Continuation Coverage.  See Section 19.01 for a definition of Dependent and full-time student and see Section 3.03 for the rules governing COBRA coverage.

1.06     Your Spouse Loses a Job or Takes a New Job.

When your spouse loses employer-provided insurance due to the loss of employment, you should contact the Fund Office to let them know that this Plan’s coverage will be primary. Please provide a copy of the letter from your spouse’s insurance carrier advising as to the date of termination.

If your spouse takes a new job and enrolls in the coverage offered by your spouse’s employer, then this Plan will cover your spouse’s medical expenses as the secondary plan under the coordination of benefits provisions.

1.07     Leave of Absence.

If you take maternity or paternity leave, a leave of absence under the Family and Medical Leave Act (FMLA) or if you take military leave under the Uniformed Services Employment and Reemployment Rights Act (USERRA), your eligibility under this Plan may be affected. You should refer to the explanation of these types of leave in Section 3.01(I) and Section 3.01(J).

1.08 In the Event of Your Disability.

If you become disabled because of a certified disability, you will be eligible for Weekly Accident and Sickness Disability Benefits for a maximum of 26 weeks.  During that time, you will be credited with disability hours to help maintain your eligibility under the Plan. When your coverage ends, you may elect COBRA coverage as explained in Section 3.03.

1.09 Enroll and pay for COBRA to continue Plan coverage,
or In the Event of Your Death.

 

At the time of your death, your spouse or beneficiary should notify the Fund Office and provide a copy of your death certificate.  Your spouse or beneficiary should complete a Death Benefit application from the Plan and/or an application for Accidental Death and Dismemberment Benefits, if applicable.  If your spouse and Dependents are covered under the Plan on the date of your death, their eligibility will continue for as the hours in your Accumulation Account allow. Then, they may continue health care coverage for up to 36 months by electing COBRA Continuation Coverage and making the necessary self-payments. There is also Enhanced Continuation Coverage for surviving spouses who are age 60 to 65 at the time of the employee’s death as explained in Section 3.03(F).
 
If you are retired at the time of your death, your surviving spouse and Dependents may be eligible for continuation of your Retiree coverage.  To determine if your spouse and/or Dependents are eligible to continue coverage under the Retiree health plan, please review the information in Section 3.02 or contact the Fund Office.

1.10 When You Stop Working.

If you are eligible for Active Employee Benefits, coverage for you and your Dependents will end on the last day of any benefit quarter for which you do not have the required hours of contributions in your Accumulation Account. You may elect COBRA Continuation Coverage when your coverage ends, as explained beginning in Section 3.03.

When you retire, you may continue coverage if you meet the requirements for Retiree coverage. Retiree coverage converts to Supplemental Medical Benefits when you become eligible for Medicare.

1.11   When You Retire.

When you retire, if you are not yet eligible for Medicare, you may continue coverage if you meet the Plan’s requirements for Retiree coverage. If you retired and are eligible for Medicare, the Plan provides a Supplemental Medical Benefit that supplements the benefits you receive from Medicare. See the Schedule of Benefits in Section 2 and Section 3.02 regarding Retired Employee Eligibility.

 

 

 

 

 

 

 

 

 

 

 





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Section 2: Schedules of Benefits

A Schedule of Benefits is a list of benefit amounts and exclusions that apply to the plan of benefits. Each specific benefit is described in more detail in the section concerning that particular benefit. When reading the specific benefit section you should reference the applicable Schedule of Benefits and vice versa. If there is a discrepancy between the Schedule and a specific Plan section, the specific Plan section will usually govern. However, the Board has discretionary decision making authority to interpret the terms of the Plan.

This Section provides information for each type of participant under the Plan. Section 2.01 provides a Schedule for Active Employees. Section 2.02 provides a Schedule for Retired Employees not yet eligible for Medicare. Section 2.03 provides a Schedule for Retired Employees who are eligible for Medicare. Section 2.04 provides Schedules for Prescription and Specialty Drug Benefits for Active and Retired Employees

The following Schedule provides an overview of the benefits that apply to each type of participant.
  

Benefit

Active Employees

Retired Not Yet Eligible for Medicare*

Retired Eligible for Medicare*

Major Medical; Section 7

x

x

 

Supplemental Medical; Section 8

 

 

x

Prescription Drug; Section 9

x

x

x

Dental; Section 10

x

 

 

Vision; Section 11

x

 

 

Employee Assistance Plan; Section 12

x

x

 

Hearing Aid Benefit; Section 13

x

x

 

Hospice Benefits; Section 14

x

x

 

* When you retire; if you meet the eligibility requirements for retiree medical benefits, those benefits will commence after eligibility for active Employee benefits ceases due to the exhaustion of your Accumulation Account.
 

2.01          Schedule of Benefits for Active Employees.

Benefit

Benefit Amount or Limitation

Death Benefit for Active Employees Only

$10,000

Accidental Death and Dismemberment Benefit for Active Employees Only

 

For loss of:

 

            Life

$10,000

            Both hands, both feet, or sight of both eyes

$10,000

            One hand and one foot, one hand and sight of
            one eye, or one foot and sight of one eye

$10,000

            One hand, one foot, or sight of one eye

$5,000

Weekly Accident and Sickness Disability Benefit for Active Employees Only

 

            Weekly Benefit Amount

$350

            Maximum Number of Weeks of Benefit

26

Medical Expense Benefits for Active Employees and Dependents

 

Calendar Year Deductible

$300 per Person

Maximum 3 deductibles per Family

Maximum Benefit

 

            Maximum per Disability

$1,000,000 per Person

            Spinal Manipulation Maximum
            (including diagnostic tests)

$1,000 per Calendar Year (for covered individuals age 16 and older)

            Confinement in a Skilled Nursing Care Facility

60 Days per Confinement

Covered Expenses Payable by the Fund

up to the Usual and Customary Fees

PPO Charges

Non-PPO Charges

            

Physician, Hospital/Facility                    (inpatient and outpatient)

85%

75%

             Skilled Nursing Care

60 days per confinement; See Sec. 7.08 (A) (11)

Out-of-Pocket Maximum per Calendar Year

Out-of-Pocket Maximum Does Not Include:

·     Deductible Amount

·     Prescription Drug Copayments

·     Dental Expense Payments

·     Vision Care Expense Payments

·     Copayments for Outpatient Treatment of Mental and Nervous Disorders, or Chemical Dependency

$1,000 per Person for PPO expenses

$2,500 per Person for Non-PPO expenses

Once you reach the Out-of-Pocket Maximum, the Plan pays 100% of allowable expenses for the calendar year up to the Maximum Benefit listed above. Expenses that apply towards the Non-PPO out-of-pocket limits apply towards the PPO out-of-pocket limits and vice versa.

Note:    Durable Medical Equipment and Local Ambulance Service for which PPO services are not available will be covered the same as PPO charges

 

Mental and Nervous Disorders

PPO Charges

Non-PPO Charges

Outpatient

50%