2011 Rate Renewal for Railroad Employees Covered by the National Plan

The annual rate renewal meeting for the Railroad Employees National Health and Welfare Plan (the “Plan”) was held in Washington, D.C., on October 26, 2010, at which time payment rates for 2011 were established. Rail Labor (the Cooperating Railway Labor Organizations, or “CRLO”), as a Joint Policyholder, participated in the annual rate-setting meeting.

The payment rate for 2011 increased by a total of $104.74 to $1,445.36. Although the employee cost-sharing amount is set at 15% of the payment rate, the amount for 2011 is capped under the 2007 National Agreements at $200. Without the $200 cap, the 15% employee cost-sharing amount would have been $216.80. The $200 cap remains in effect until a new National Agreement is reached and can only be changed by the terms of the new agreement. As a result of the cap, employees will now be paying less than 15% of the payment rate and the railroads slightly more than 85%.

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