Contract Concerns

[Ernie]

This is in regards to the phone calls I have received from of our members on this website concerning talk of the increase in medical in the last year of our contract.

First let me assure you that the jaw dropping numbers that some of you are putting out there are outrageous. When we started out at the beginning of our ratification our medical fund was in fact in dire straits at .3 (point 3) Moving forward from that point to now, at the last General Membership meeting Michael gave an update of the percentage of where we are now, which is 3.24.To clear up some rumors of how much we would be paying is pretty hard to estimate without the actuaries doing their audit. Now that being said, our contract reads: " in the last year of our contract, the companies will pay the first $3.00 increase and we would split anything after the $3.00 "

            EXAMPLE: if the actuary said the increase would cost us $6.00 it would only cost us $1.50.

Also understand we could never get the increase that people are putting out there in such enormous numbers. Our increases have never exceeded more than $5.00 dollar increments. The only increase that has ever exceeded the $5.00 dollar number has been paid by the contractors according to the agreement of our contract .By which they received help from the city placing our medical back to speed within the first two years. Again it has not cost us any additional money as of yet. At the rate we are going now there is a possibility that as long as the fund continues to grow we may not have to pay any increase. So please don't panic and stop listening to false rumors. If ever there were questions go to Andrew and he will get you the correct answers. Just as Andrew mentioned yesterday, if it weren't for your experienced EB working diligently the medical would have been exhausted by now. So continue to support your EB and our future.

Thank you
Ernie

[LMR]

Thank you Ernie for info update.Sure sounds better than some of the doom and gloom that's for circulating around out there.

[Just_Right]

Well it's about time we got the right answers.Thanks Ernie could always count on you giving us the right information.Seems like some people think they know everything.Yet they fall short with their lies.

Regards to your family.Prayers are with you.

[Buzz]

Thanks for the clarification, Ern. Many of us, myself included, thought this was a nefarious clause instigated by the contractor that could result in disaster for us.

Ernie went on to explain to me that this was put into the contract to FORCE the owners to contribute to the fund, which they hadn't done for a number of years because we had such a healthy reserve. They continued not to contribute even when the reserve dipped to dangerous levels. They are now required to contribute to reach and maintain a 4 month reserve. Being we have recovered to almost that level ... 3-plus months ... there is a good chance that by next year we will not have to increase our contribution at all.