More than 1,500 Chrysler retirees turned out Wednesday to learn about changes to their benefits package — changes that officials say are vital to preserving the trust fund.
Gordon Graham, the executive director of asrTrust Retiree Health Care, came from the fund’s Toronto office to explain revisions that went into effect Jan. 1, 2016.
“Instead of cuts, we looked at a lot of waste in benefits,” Graham explained during the information meeting at the Caboto Club.
One of the biggest changes involves over-the-counter drugs. The plan no longer covers most medications that can be purchased over the counter without a prescription. The plan will continue to cover OTC drugs that are considered “life sustaining.”
Another change eliminates long-term care coverage for sponsored dependents — a person described as someone related to the retiree by blood or marriage, who resides with the retiree as a member of the household and qualifies for dependency tax status. This change does not affect spouses or children.
Other changes call for limiting the mark-up on eligible medications to eight per cent of the wholesale price and limiting refills of maintenance drugs to five times a year which breaks down to once every 90 days instead of every 30 days.
The idea is to curb costs for dispensing fees.
Gordon Graham, executive director for asrTrust Retiree Health Care, talks with retirees during a UNIFOR meeting at the Caboto Club on Jan. 13, 2016.
An introductory letter handed out with an information brochure noted steps were necessary because “the most recent assessment (valuation) of the Trust’s financial health has confirmed that the current plan is simply not sustainable as it stands. Based on updated mortality rates, claiming patterns, improved life expectancy, and other financial factors, our independent experts tell us that the Trust will run out of money in 30 years from now, give or take.”
The trust was established in 2009 as a byproduct of contract negotiations that saw Chrysler shed legacy costs.
Dino Chiodo, president of Local 444, said the fund was supposed to last until 2082 but “if nothing is done by 2050, the money is gone.”
He estimated the changes affect 6,000 people in the Windsor-Essex area.
The new year also marked a 1.5 per cent increase in annual premiums. That represents a $0.45 monthly increase for a member under 65 and $0.23 monthly increase for a member 65 and over.
Graham explained a new initiative called the Preferred Pharmacy Network established by asrTrust has enlisted local pharmacies willing to price services in line with plan limits and terms.
Chiodo said to date 14 local pharmacies have signed on with potential for seven more in the near future.
“They have to do what they have to do to keep the plan alive,” said 78-year-old retiree Bernie Soulliere. “It’s give and take for the good of everyone. I can live with that.”
Fellow retiree Kevin Gale said the changes would have little effect on him.
“Not for me personally because I don’t take a lot of drugs,” Gale said. “It could be different for someone else in the room who has a drug regimen that’s quite lengthy.”
Further information is available at cci.asrtrust.com.
