To: FCA of Illinois and NIPDI Members
It is an understatement that the current pandemic has caused all of us to make changes in many ways.
Along with our upcoming annual June 1st FCAI/PDC 30 contractual increase, you will find some unprecedented adjustments.
The Union, in consultation with Trustees of the Pension and Health and Welfare Funds, has determined it is necessary to temporarily reallocate a portion of future contributions to the PDC 30 Pension Fund to go instead into the PDC 30 Health & Welfare Fund. The rationale for this is explored in more detail in the Questions & Answers about the 2020 Reallocation link…
Under this plan, in addition to the reallocation of a portion of the hourly contribution rate from the PDC 30 Pension Fund, the District Council will continue to devote a portion of the contractual increase to the PDC 30 Health & Welfare Fund.
This reallocation is temporary and planned for two years.
In addition, the Collective Bargaining Agreement calls for a contractual increase of $2.00 in Zone A, $2.00 in Zone B, and $1.50 in Zone C; effective June 1, 2020, through May 31, 2021.
These distributions and the reallocation distributions can be found in the new Wage Rate Sheet,
The main reason for the reallocation is to address the effects of the COVID-19 crisis, which has caused both an economic and a health care crisis in the United States and throughout the world. The crisis is likely to be especially challenging for self-funded health plans like ours, because such plans will experience reduced annual income from contributions (due to lost work), and potentially lower annual income from investments as the stock market takes a hit throughout the year.
Added to those factors are expenses to treat COVID-19 infection and related health care needs of members and their dependents, in addition to steadily higher overall health care costs and increasingly higher dollar claims over the past few years.
PDC 30 has mailed to all signatory contractors comprehensive information outlining the above changes and the reasons for doing so. Should you have any further questions, please do not hesitate to contact the FCAI office.