on the 2019 ge contract · union employees covered by the contract will receive the bonus if the...

Focuson the 2019 GE Contract

Increased wages

Retirementimprovements

Job & income security

The proposed agreement bargained between GE and the Coordinated Bargaining Committee positions GE union employees to enjoy good wages and meaningful bene�ts. The proposed package is subject to member rati�cation.

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Improvements and updates to other bene�ts

Health careenhancements

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2019 - U

FOCUS: 2019 GE CONTRACT

Two Accelerated Cash Payments totaling $3,000

Two Accelerated Cash Payments (ACPs) total $3,000 ACPs of $1,200 in 2021 and $1,800 in 2022 will deliver substantial cash compensation to employees and increase the value of other benefits:

• The ACPs count as pay and are eligible for pension credits, the Company Retirement Contribution (CRC) and Retirement Savings Plan (RSP) Company Match.

• Those who maximize the Company Match will receive at least $105 in additional Company Contributions.

• For those eligible for the Company Retirement Contribution (CRC), ACPs add $90 in Company Contributions.

• For those in the GE Pension Plan, the ACPs boost annual lifetime benefits paid at retirement under both the Guaranteed Pension table and Regular Pension formula.

Wages

Three wage increases boost base pay

Union employees covered by the contract will receive three general wage increases and two Accelerated Cash Payments (ACPs) over the next four years. Pay increases and cash payments provide additional compensation.

Higher paychecks

• Three general wage increases: 75 cents per hour effective January 27, 2020, 30 cents per hour effective January 25, 2021, and 75 cents per hour effective January 23, 2023.

• ACPs of $1,200 will be made in 2021 and $1,800 in 2022.

• Upon ratification of the agreement by July 11, 2019, eligible union employees will receive $1,500 to recognize their hard work to meet customer demand.

Three general wage increases totaling $1.80 per hour

Ratification bonus: $1,500

What’s new

The Accelerated Cash Payments boost lifetime benefits from the GE Pension and contributions to the RSP. ACPs will NOT increase your health care contributions.

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Wages FOCUS: 2019 GE CONTRACT

Compensation summary

Eligibility Date* Payment / Increase

June 24, 2019** $1,500 ratification bonus

January 27, 2020 75 cents per hour general wage increase

January 25, 2021 $1,200 first Accelerated Cash Payment 30 cents per hour general wage increase

January 24, 2022 $1,800 second Accelerated Cash Payment

January 23, 2023 75 cents per hour general wage increase

Update on overtimeTwo overtime rules are changing

Updated overtime rules go in effect the first pay period of 2020 for hourly and salaried nonexempt employees covered by this contract. Employees covered by this agreement continue to be eligible for overtime premiums.

Employees who are called back after the end of their first shift (or told to report prior to their regular starting time) will be paid at the rate of time and one-half for hours worked up to the beginning of their first shift. This change makes the premium for first shift employees consistent with the premium for second and third shift employees.

Employees will continue to be paid at the rate of double time for working over 12 hours in a workday. However, the double time premium will not automatically continue into the employee’s next workday.

*All ACPs to be made as soon as practicable after eligibility dates.

**Eligible employees are those who are on active payroll, on Company-approved leave of absence, or on Temporary Lack of Work layoff as of June 24, 2019. Ratification bonus will be payable to union employees if the agreement is ratified by July 11, 2019. It will be paid as soon as practicable after August 1, 2019.

$1,500 ratification bonusUnion employees covered by the contract will receive the bonus if the agreement is ratified by July 11, 2019. The ratification bonus will be payable as soon as practicable after August 1, 2019.

General wage increases, ACPs and ratification bonus add up to substantial additional compensation.

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CALCULATING THE REGULAR PENSION UPDATEAfter several career increases, an employee with 27 years of PBS has average annual pay of $105,000, and, as of December 31, 2018, has earned an annual Regular Pension of $23,480. After the update, the Regular Pension will be $28,620, an increase of $5,140.

Qualifying for the Regular Pension Update

To be eligible for the Regular Pension Update, you must have at least 25 years of Pension Qualification Service (PQS) (or be at least age 55 with 20 years of PQS) as of December 31, 2018, and be actively participating in the plan on July 1, 2019, or when you terminate employment in June 2019 after becoming eligible to retire.

Building your foundation for retirement

Guaranteed Pension benefits go up across the board effective July 1, 2019

Monthly benefits will increase across the board by $1 per year of Pension Benefit Service (PBS). The top benefit will also increase to $89 per year of PBS for those with final average pay of at least $89,000.

Regular Pension improvements

Supplements help early retirees

Increase in Guaranteed Pension

What’s new in pension

Regular Pension update for eligible long-service employees effective November 1, 2019

A one-time update will increase the Regular Pension of qualifying long-service union employees by 15.1% on average.

The update calculates a benefit under an alternate formula based on your PBS and your three highest consecutive years’ pay, including overtime, from 2013 through 2018.

If the alternate amount is greater than the Regular Pension you have already earned, your Regular Pension will increase to the higher level. This updates your benefit to more closely reflect your current pay.

HOW TO CALCULATE THE REGULAR PENSION UPDATE

0.8% of your average

annual pay* up to $65,000

1.35% of your average annual pay* over $65,000

Your PBS as of December 31, 2018

If this amount is greater than your annual Regular Pension benefit as of December 31, 2018, you’ll get the larger annual amount.

*Average annual pay is the average of your three highest consecutive years pay (with

overtime) during the years 2013 through 2018.

0.80% X $65,000 X 27 yrs. PBS = $14,040

1.35% X ($105,000 - $65,000) X 27 yrs. PBS = $14,580

$28,620

+

x

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Building your foundation for retirement FOCUS: 2019 GE CONTRACT

Regular Pension breakpoint improveseffective January 1, 2020

Under the Regular Pension, you earn a benefit each year equal to 1.45% of your pay up to a certain amount (called the breakpoint) plus 1.9% of your pay over the breakpoint. That year’s benefit is added to what you’ve earned in previous years to determine your total Regular Pension benefit at retirement.

The breakpoint in the formula was scheduled to increase, to about $68,700 in 2020, and continue increasing to about $77,600 by 2023, so that less of your pay would have earned a benefit at the higher rate over the next few years.

The new contract improves the formula by setting the 2020 breakpoint at $60,000, keeping it there through 2023. This means more of your pay (as much as $17,600 in 2023) will earn a pension benefit at the higher 1.9% rate.

Regular or Guaranteed Pension: You get the greater amount

The GE Pension Plan uses two formulas to calculate benefits:

• Regular Pension

• Guaranteed Pension

Both consider your pay and service, and when you retire, you’ll receive the one that pays the greater amount.

Supplements help bridge you to Social Security and transition to retirement

The new contract:

Regular Supplement increases from $21 to $23 per month, per year of PBS

• Five years of PQS are needed to qualify

• If you retire directly from the company on or after August 1, 2019

$375 per month Special Supplement available

• Twenty-five years of PQS are needed to qualify

• If you retire directly from the company on or after August 1, 2019, and on or before July 1, 2023

Renews the extension for both supplements beyond age 62

• In the next four years, eligible employees retiring at age 60 will receive supplements for more than three full years instead of two.

• Helps bridge them to the age at which they can receive 80% of their Social Security benefits. (See table on right.)

Year of

Birth

1956

1957

1958

1959

After 1959

Age to Which Supplements are Paid

Age 63 and 4 months

Age 63 and 6 months

Age 63 and 8 months

Age 63 and 10 months

Age 64

Your 80% Social Security age is determined in accordance with the Social Security laws in effect June 1, 2019, even if those rules change.

SUPPLEMENTS MAKE A DIFFERENCEFor example, an employee with 30 years of Pension Benefit Service who retires at age 60 in February 2020 will receive:

The supplements will be a substantial help to transition many long-service employees to Social Security benefits.

$1,065 in supplements total

this includes an extra

paid beyond age 62 due to the renewal of the extension$25,560

months48 $51,120

The pension improvements described in this newsletter only apply to union employees not subject to salaried benefits treatment who are eligible to participate in the GE Pension Plan. Please see Your Benefits Handbook if you have any questions about eligibility for pension. 4


Did you know?

• Experts recommend saving 15% of your annual pay for retirement. This plan helps you get there.

• GE matches 50% of your retirement contributions, up to a certain percentage.

• Maximize your match!

Two Extra ACRCs: $300 in 2020 and 2022

Retirement Savings Plan

Extra contributions in the GE Retirement Savings Plan (RSP)

Increased Company Contributions

What’s new

3% 8% 4%+ +Automatic GE Contribution

Maximizing the RSP for DC-only employees

Employee Savings

Company Match

=THE PATH TO RETIREMENT READINESS

of Annual Pay

15%

ACRC

2020 = $600 = $900

2021 = $600

2022 = $600 = $900

2023 = $600

$300+

$300+

GE helps employees prepare for retirement with RSP. For newer, DC-only employees: • GE automatically contributes 3% of your pay as a Company Retirement Contribution (CRC).

• GE also contributes an Additional Company Retirement Contribution (ACRC) of $600 annually.

+

Starting in 2020, the eligibility date to receive an ACRC changes from December 31 to December 15 each year.

As part of the new contract, GE will contribute two extra ACRCs of $300 to give you even more savings for retirement.

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Retirement Savings Plan FOCUS: 2019 GE CONTRACT

Other RSP changes• Vested participants who leave GE will automatically receive a distribution of their full

account balance if it is $1,000 or less.

• If you request a withdrawal or loan check be sent via overnight mail, you will pay the overnight fees. As an alternative, you can set up electronic funds transfer (EFT) at any time either online by visiting OneHR.ge.com > Retirement > My GE RSP, or by calling the GE RSP Service Center at 1-877-55-GERSP (1-877-554-3777).

RSP at your fingertips

Check account balances, use planning tools, learn about investment and savings options and take action using the convenient NetBenefits mobile app.

Fidelity.com/go/NetBenefitsapp

(Or check the app store for Apple or Android)

It is important for you to take an active role in planning for retirement, so we offer RSP participants access to free tools and resources — online, onsite or in person.

ONLINE

OneHR.ge.com > Retirement > My GE RSP

ONSITE

Fidelity representatives visit plants and production facilities to present workshops. Check with your HRM for details.

IN PERSON

190 Fidelity Investor Centers

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Job and Income Security

Help for job and retirement transitions

Enhanced income extension aid

Renewed SERO, SERO 30 & PCPO for job-loss events occurring July 1, 2019–June 30, 2023

Special Early Retirement Option (SERO), SERO 30 and the Plant Closing Pension Option (PCPO) renewed for eligible long-service employees affected by permanent job-loss events. Eligible employees whose jobs are directly impacted, and who retire under SERO, SERO 30 or PCPO will receive:

• Unreduced pension with applicable improvements

• Regular Supplement that continues until employee is eligible to collect Social Security at 80% level (80% Social Security age), at rate of $23 per month per year of Pension Benefit Service (PBS)

• Special Supplement at $375 per month until employee’s 80% Social Security age

• Other benefits available to similarly situated retirees, including company-subsidized pre-65 retiree health coverage

Increased training & placement support

Renewed job loss retirement options

What’s new

Education & retraining • $1,000 increase in reimbursements to $13,500 for employees affected by plant closings

• $4,000 increase in reimbursements to $10,000 per year for employees who have been permanently laid off

Special Supplement Benefit Option renewedfor job loss events occurring July 1, 2019–June 30, 2023

The Special Supplement Benefit Option (SSBO) has been renewed at $375 a month. SSBO is available to employees under age 60 with at least 25 years of Pension Qualification Service (PQS) and who are directly impacted by permanent job-loss events. See Your Benefits Handbook for a complete explanation of SSBO, including other eligibility requirements.

SERO and SERO 30 also provide a limited substitution feature, which allows an eligible employee to voluntarily retire in place of an employee who would have otherwise been directly impacted by a permanent job-loss event. SERO and SERO 30 substitutes will receive an immediate unreduced pension (including applicable improvements) and access to pre-65 retiree health coverage at full retiree plan cost (without company subsidy).

See Your Benefits Handbook for other eligibility requirements that may apply.

Benefits effective January 1, 2020, unless otherwise noted. 7

Job and Income Security FOCUS: 2019 GE CONTRACT

Advance termination request

Employees impacted by a plant closing who ask for their termination date to be advanced to accept other employment will not be unreasonably denied.

Other transitional support

• Increase in Special Retirement Bonus from $18,000 to $20,000

• Increase in Voluntary Layoff Bonus from $18,000 to $20,000

Recall rights

Employees with at least one year of continuous service retain recall rights for a period of 60 months following layoff or retirement.

Preferential PlacementPreferential Placement helps eligible employees who lose their jobs find other opportunities within GE.

• Increase relocation assistance from $4,500 to $5,500 for employees without dependents and from $9,000 to $10,000 for employees with dependents

• $50 increase in reimbursements for interview expenses to $350

• Candidates with 20 or more years of continuous service applying for entry-level positions shall be provisionally placed for up to three months.

• Ability to advance plant closing or layoff termination date to accept a job through Preferential Placement

• Candidates placed into competitive or market-based wage positions retain a one-time right to accept recall back to former location for duration of recall rights.

Income Extension Aid (IEA) & Plant Closing Severance Pay (PCSP)• Employees rehired within 12 months of being laid off or

six months of a plant closing can restore service credits by repaying IEA or PCSP at a prorated rate.

This benefit continues to provide 12 months of medical coverage with no employee contributions.



Enhanced pharmacy coverage

Enhancements and changes to pharmacy coverage

Increased chiropractic visits

Improved hearing aid benefit

Changes to obesity surgery

New! Maternity Care Select

Health Care Benefits

No contribution increases in 2020, lower increases vs. prior contract for 2021-2023. Low- or no-cost medications; enhanced coverage for chiropractic, obesity surgery and hearing aids; Maternity Care Select

What’s new

100% coverage*

• Certain generic high blood pressure medications

• 10-day supply of certain generic antibiotics

• Select medications to treat opioid addiction

Low costfor certain asthma

medications*

• Retail 30-day supply: $12 co-pay

• Mail order 90-day supply: $24 co-pay

Specialty Drugs at $4

per day*

• $120 co-pay for 30-day supply

• $360 co-pay for 90-day supply

* Not subject to annual deductible for Options 1 and 2. Option 3 must satisfy annual deductible.

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FOCUS: 2019 GE CONTRACTHealth Care Benefits

Other health care improvements

Increased chiropractic visitsChiropractic visits will increase from 15 to 24 visits per calendar year (one visit per day).

Changes to obesity surgery100% coverage for inpatient revisional bariatric surgery when medically necessary.

Improved hearing aid benefitHearing aids will now be covered every two years for up to $3,000 per ear.

New! Maternity Care Select Routine prenatal care, inpatient hospital stays and delivery through a Center of Excellence may be covered at 100% and not subject to the annual deductible for Options 1 or 2. Option 3 provides 100% coverage after the annual deductible. Employees must participate in GE Health Benefits, enroll early in their pregnancy and meet plan and clinical eligibility.

Maternity Care Select is currently available in these areas:

Schenectady, New York —

Bellevue Woman’s Center*

Cincinnati, Ohio — Good Samaritan &

Bethesda North

Lynn, Massachusetts —

Beverly Hospital

Greenville, South Carolina — St. Francis Eastside

Waukesha, Wisconsin — Waukesha Memorial &

Oconomowoc Memorial

* Options 1, 2 and 3 must satisfy annual deductible — 100% coverage after deductible is met.

Call Health Coach from GE at 1-866-272-6007 for eligibility requirements and to enroll.

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New dental and vision plan optionsTo be eligible for dental or vision coverage, you must be enrolled in GE Health Benefits with matching coverage for you and your dependents.

Dental You may choose one of the two dental options.

Vision You may choose one of the two vision options.

Dental Preventive Care Option

• Annual maximum benefit for select preventive services:

• Clinical oral exams

• Preventive cleanings

• X-rays

• Discounts for in-network covered preventive services once annual maximum is reached

Vision Preventive Care Option

• Free exam — one per member, per year

• In-network discounts on lenses, frames, coatings, tinting, contacts, laser surgery and additional exams (in excess of one per year)

Vision Premium Option • Payroll contributions are required

• 100% coverage in-network for annual exam

• $200 annual allowance per person for frames and lenses

• Network expanded to include Warby Parker online and in stores

Contributions: (same for all wage tiers)

• $15.50 (1-person) per month

• $31.00 (2-persons) per month

• $46.00 (3-or-more persons) per month

Contributions: (same for all wage tiers)

• $9.00 (1-person) per month

• $18.25 (2-persons) per month

• $27.75 (3-or-more persons) per month

No contributions are required No contributions are required

Dental Premium Option • Payroll contributions are required

• $50 annual deductible per person, $150 family maximum

• Similar design and coverages as today — preventive services still covered at 100%

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Keeping GE Health Benefits for Production Employees coverage affordable Tiered contribution structure ensures that those who earn less, pay less.

• No contribution increases in 2020, lower increases vs. prior contract for 2021-2023.

• No increase to the Annual Out-of-Pocket Maximum

• Modest increase to the Annual Deductible

Example: GE Health Benefits for Production Employees Option 1 Weekly contribution rates — employees earning $50,000–$74,999

WEEKLY CONTRIBUTIONS

Coverage Annual Deductible

Annual Co-Insurance Maximum

2020 2021 2022 2023

One-person $100 increase No increase $34.79 (No increase)

$36.84 $39.01 $41.31

Two-persons $200 increase No increase $69.60 (No increase)

$73.71 $78.06 $82.67

Three-or-more persons

$250 increase No increase $86.99 (No increase)

$92.12 $97.56 $103.32

Full rate sheets will be available during Annual Enrollment

No increase to smoking surcharge; remains $625 per year.

GE Health Benefits for Production Retirees Contributions For employees hired prior to January 1, 2008

Effective January 1, 2020, for the purpose of calculating contributions for eligible Retirees who were hired prior to January 1, 2008, “Annual Pay” will be defined as:

• For Retirees whose Normal Straight Time Annual Earnings immediately prior to retirement equaled or exceeded $76,000: Final Normal Straight Time Annual Earnings.

• For Retirees whose Normal Straight Time Annual Earnings immediately prior to retirement were less than $76,000: Annual retirement income under the GE Pension Plan and any other Company pension plan.

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Improvements and updates to Other Benefits

Time off • Enhanced pay for military service

Full pay for up to 30 days a year for annual encampment, training duty or temporary emergency duty

• Immediate eligibility for holiday pay Employees will be eligible for any paid holiday following hire date

• Additional time off for preventive screening Two paid days off for a colonoscopy

Life insurance benefits • Life insurance

• Life insurance benefit changed from 2.5 times an employee’s pay to 2.0 times an employee’s pay, and the benefit, combined with Accidental Death or Dismemberment (ADD), will not exceed $5 million.

• The living benefit for GE Life Insurance increases to 80% of the employee’s life insurance benefit up to a maximum of $500,000 (was 50%, up to $250,000) for applications submitted on or after January 1, 2020.

• The GE Life Insurance advance lump sum increases from $5,000 to $10,000 for new requests submitted on or after January 1, 2020.

• Enhanced survivor support Free access to financial counseling is increased from six months to 12 months for new counseling claims initiated on or after January 1, 2020.

• Enhanced Personal Accident Insurance coverage Additional covered conditions are available including coma and brain damage.

Work and Family• GE Educational Loan Program changes

• Maximum of one new loan (lifetime), maximum dollar limit remains $8,000

• The repayment term is changed from 10 years to eight years for loans applied for beginning on or after January 1, 2020.

• Eligibility for a new loan will end for employees notified of a disposition, permanent reduction in force or a plant closing announced on or after January 1, 2020.

Paid Parental Leave

Up to three weeks of paid leave for new parents for use within 12 months of the birth or placement for adoption of a child or children on or after January 1, 2020


Improvements and updates to Other Benefits FOCUS: 2019 GE CONTRACT

Additional Updates• Return to former classification

Employees transferred to jobs outside of a bargaining unit may return to their former classification in the bargaining unit during the three-month period following the first transfer to a job outside the bargaining unit.

• New hire orientation Local unions may provide a representative to give a presentation not to exceed one hour to all newly hired employees as part of the employee’s new-hire orientation.

Emergency Aid • Disaster relief

Emergency Aid (EMAID) grants up to $3,750 per household for damage due to earthquake, fire, flood, hurricane or tornado in disaster areas designated by federal, state or local authorities.

• Personal emergency Personal emergency grants no longer available.

Service Shop updates• Job preservation meetings increased from annually to quarterly for shops with less

than 25 employees

• Travel allowances will be negotiated locally

• If working for three or more consecutive weeks, employees may take one day off without pay, and the day is taken within six months of the date is was accrued

• Maximums for shoe and tool allowances remain unchanged ($250 and $350, respectively), and unused allowances do not roll over

Benefits effective January 1, 2020, unless otherwise noted.

Disability• Short-Term Disability Insurance

• Maximum weekly benefit increases by $50 to $950

• Minimum weekly benefit increases by $25 to $400

• The one-half reduction in benefit payment has been removed for claims filed more than seven business days after the claim occurs.

• Long-Term Disability Income Plan• The monthly minimum benefit amount increases by $50 to $400 effective for disabilities beginning

on or after January 1, 2020.

• Appeals• Denied claims may be appealed up to two times for both short-term and long-term disability

plans (was three).

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Focuson the 2019 GE Contract

2019 - U

GE1 River RoadSchenectady, NY 12345

on the 2019 ge contract · union employees covered by the contract will receive the bonus if the...

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