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More than 40,000 United Steelworker retirees and spouses who lost health care coverage in the bankruptcies of four steel companies are getting financial help with their Medicare Part B premiums from an innovative trust fund bargained by the USW to assist them.
Checks will be mailed during the first week of December to 40,476 USW-represented retirees and spouses of Bethlehem Steel, LTV, Acme Metals and Georgetown Steel, said Thomas Duzak, director of pension and benefits for the USW.
The checks will reimburse eligible individuals for up to six months of Medicare Part B premiums paid during the first half of 2006. A single retiree will receive $531 and couples $1,062. Premiums were typically $88.50 a month for Medicare beneficiaries.
“This benefit payout reflects our continuing commitment to represent the interests of retirees who were abandoned by their former employers and betrayed by the bankruptcy courts,” USW President Leo W. Gerard said.
The one-time benefit is being paid for from a benefit trust fund, known as the Mittal Steel USW Voluntary Employee Beneficiary Association (VEBA).
The VEBA trust was established in 2002 through negotiations between the United Steelworkers and International Steel Group (ISG), which has since been acquired by Mittal Steel USA.
The VEBA is funded by contributions from Mittal, based on company profits and steel tonnage. Benefits are jointly determined by the USW and Mittal, depending on funds available in the trust and the needs of eligible retirees.
The VEBA also provides prescription drug coverage for approximately 24,000 retirees and spouses.
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STEELWORKERS ORG. OF ACTIVE RETIREES
