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Benefits Increase for Wheeling-Pitt Retirees, Spouses

The United Steelworkers (USW) announced benefit increases for Wheeling-Pittsburgh Steel retirees who lost their health coverage when the company reorganized under Chapter 11 Bankruptcy Protection and have enrolled in the Wheeling-Pitt Voluntary Employees' Beneficiary Association (VEBA). The Union has also negotiated an increase in payments made by Wheeling-Pitt to surviving spouses of employees who retired prior to 1974 to $1300 and $800 yearly.

The Wheeling-Pitt VEBA trust is funded by contributions from the company, based on earnings and steel tonnage.

Benefits are jointly determined by Wheeling-Pitt and the USW, depending on funds available and the needs of eligible retirees.

The Steelworker-negotiated VEBAs at Wheeling-Pitt and other steel companies are historic in being the first ever to restore benefits to retirees who had worked for bankrupt or liquidated companies that had been purchased by new firms.

Premiums for Medicare eligible Wheeling-Pitt retirees from the Ohio Valley will drop from the 2005 rate of $120 per month to $85 per month in 2006. Likewise, Monongahela Valley retirees' premiums will be reduced for 2006 to $85 from $115 per month. In addition, for 2006, the $31.12 premium to enroll in Medicare Part D will be included in the $85 monthly charge.

Medicare-eligible VEBA participants who now live outside of the area will not see an increase in their 2006 rates, which will be held at $150 per month. Non-Medicare-eligible participants who are not receiving a Health Care Tax Credit will have their rates frozen at $190 per month.

"The USW remains committed to the retirees who had benefits for which they worked their whole lives stripped away in bankruptcy court," said Wheeling-Pitt Negotiating Committee Chairman and USW District 1 Director David McCall. "Our Union is proud to help restore a measure of coverage for the men and women whose generations of sacrifice enabled us to build a better life for ourselves."

McCall said that the Union will continue its drive to keep premiums as low as possible for Union retirees, but would not limit its efforts to stop-gap measures in times of crisis. "Our challenge looking forward is to continue fighting for a national heath care program for all of our nation's seniors," McCall said, "and in the meantime, we will do our best to continue to provide a meaningful, ongoing benefit that meets an urgent need for our retirees and their families."