Friday, September 15, 2017
On Friday, September 8, 2017, Duquesne Light Company and IBEW Local 29 reached an updated agreement regarding post-retirement healthcare coverage. This agreement effectively extends the current structure and coverage levels for retirees from January 2018 through December 2018.
During this period, eligible retirees will participate in the same Company-sponsored healthcare programs and offerings as active employees, except they will pay the effective retiree rate. Then, beginning in 2019, eligible retirees will move into a healthcare exchange with a corresponding Health Retirement Account (HRA) that is funded at $9,985 (with an additional $9,985 for spousal coverage). In 2020, the HRA funded amount will be indexed off of the consumer price index (CPI-U; all Urban Consumers, US City Average).
This important update was made based upon volatility in the healthcare exchange marketplace and the lack of a federal legislative resolution; striking a balance between providing a quality post-retirement benefit to retirees while maintaining the Company’s ability to control costs going into the future.
“I am pleased to continue our collaborative working relationship with the new Executive Leadership of IBEW Local 29 on this important issue,” said Todd Faulk, Vice President of Human Resources. “Our positive relationship has enabled us to reach an updated agreement that makes sense for our retirees, as well as for Duquesne Light Company.”
Kenn Bradley, Business Manager, IBEW Local Union 29 added, "we were glad to be able to work with Todd and his team to reach an updated agreement that will give our retirees peace of mind when it comes to healthcare coverage in 2018. Working together with the Company to resolve issues that impact our members and the business is beneficial to both the Union and the Company in order to be successful."
The Company will be mailing informational letters home to current retirees informing them of this important change for 2018.