ARTICLE XIII

 

Group Life, Hospitalization Insurance,
Retirement Plan and Employee Savings Plan
SECTION 1. The benefits applicable to employees under the group life, group medical (including prescription) plans in effect at this date will be continued for all employees, including those on Workers' Compensation, during the term of this Agreement.
 
From December 1, 2009 through November 30, 2013, pre-Medicare eligible retirees, who retire during the term of this agreement, will pay the same amount for medical as active employees. Upon expiration of this agreement they will pay the then applicable retiree medical rate.
Medicare eligible retirees will continue to pay the applicable retiree rate for their Medicare supplemental plan.
Employees hired on or after December 1, 2009 will not be eligible for the Company Retiree Health Plan and may participate in the Access Only alternative by paying the full cost of such benefits.

SECTION 2. Each employee will be insured for Forty-Six Thousand Dollars ($46,000) effective,  1/1/08, with an Accidental Death and Dismemberment provision while in active employment. Each employee will be offered the opportunity to purchase either Fifteen Thousand Dollars ($15,000) or Thirty Thousand Dollars ($30,000) of additional term life insurance at a cost of thirty-three cents ($.33) per thousand per month, which will be made available during the initial open enrollment period without a qualifying physical, or for new employees, at date of hire. For work related accidental death on the job, the benefit will be triple the life insurance benefit. Employees who retire after December 1, 1988 will receive a death benefit of Ten Thousand Dollars ($10,000) at retirement. This benefit will reduce to Five Thousand Dollars ($5,000) at the rate of One Thousand Dollars ($1,000) per year for the first five (5) years of retirement. The benefit will remain at Five Thousand Dollars ($5,000) until age seventy (70), at which time it reduces to Four Thousand Dollars ($4,000). However, if during the first five (5) years of retirement the employee reaches age seventy (70), the benefit will immediately reduce to Four Thousand Dollars ($4,000) upon reaching age seventy (70).   Employees hired on or after December 1, 2009 will not be eligible for a death benefit upon retirement.
 
The Company will assume the cost of medical, prescription, dental and vision care insurance coverage, relating to the individual employee and his/her eligible dependents less the following employee contributions for medical coverage:
 
1.         Medical:
CTCare HMO and Excellus EPO (TEN Employees)
 
Weekly employee contribution amounts:                                  
 
Coverage
January 1, 2010
January 1, 2011
January 1, 2012
January 1, 2013
Single
$27.26
$29.17
$31.21
$33.40
Family
$70.00
$74.91
$80.15
$85.76
           
 
2.         If elected, Vision and/or Dental: 20% employee contribution.  Employees will be given the option to make contributions on a pre-tax basis.
 
Annually, prior to open enrollment, the Company will, at the Union’s request supply the Union with documentation of the prior year’s medical, dental and vision insurance experience including renewal rates and employee contributions for such insurance as derived from such information.
 
Effective January 1, 2003, the Company will implement a medical and dental spousal coverage plan. If a spouse works full-time (as defined by his or her employer) for a Company that offers medical and/or dental coverage and the Company shares in the cost of these coverages, the spouse must enroll in his or her employer's plans first. The employee can then enroll the spouse in CNG's plan if desired. The two plans will coordinate benefits. If neither the employee, their spouse and other family members elect coverage under the CNG medical benefit plan, the employee will receive a One Thousand Dollar ($1,000) annual credit amortized over the employee’s normal annual pay periods (Employee Medical Opt Out).
 
For the period December 1, 2009 through November 30, 2013, only, the Company will reimburse the premium contribution cost of single medical/dental coverage paid by any employee's spouse who receives primary medical/dental coverage from his/her employer, providing that the total premium cost to the employee does not exceed the cost to the Company to include the spouse as a dependent. The employee must present documentation satisfactory to the Company to receive reimbursement.
 
3.      The current Rx co-pays effective January 1, 2010 are:
4.         The Company and Union will jointly review and mutually agree to any alternative health insurance plans to be offered effective January 1, 2011 as an option in addition to the existing plans (ConnectiCare and Excellus EPO).
 
SECTION 3. The Retirement Plan (The Connecticut Natural Gas Corporation Retirement Plan), dated January 1, 1941 and as amended effective December 31, 1967, shall continue for the life of this Agreement, dated December 1, 1985 and succeeding Agreements subject to such modifications as may be mutually agreed upon by the parties hereto. Furthermore, in appointing the Retirement Committee provided under Article 12 of the Retirement Plan, the Company will appoint a member designated by the Union for each member designated and appointed by the Company.
 
Any employee who retires on or after December 1, 2009 and who is vested in the CNG Retirement Plan, has 10 years of service, and who subsequently receives a Disability Retirement, shall be paid the greater of their accrued benefit or a minimum monthly benefit of $1,850 per month.
 
Minimum Normal Retirement Benefit - Plan Article 5, Section 5.2(d): In the case of an Employee who is credited with 30 years of credited service at retirement, the minimum monthly flat dollar amount of retirement benefit will be $1,850 for employees who retire on or after January 1, 2010.
 
Employees submitting a written notification of retirement will receive a Retirement Plan benefit calculation and will also receive appropriate documentation regarding retirement benefits.
 
Effective January 1, 2004 (1/1/04), the Company will implement a cash balance plan for employees hired on or after 1/1/04.
 
Cash Balance Plan Formula: The Company will credit the participants' cash balance account with a flat dollar amount of $3,500 per year and such credit will be applied at the end of each plan year. For plan years starting on and after January 1, 2010 the flat dollar amount will be $5,000 per year. Balances will earn interest equal to the 30-year treasury rate (or other comparable government index) but not less than 4% in effect on December 31 of the prior year and credited at the end of the subsequent year. Three year vesting will apply. Employees hired on or after December 1, 2009 will not be eligible to participate in the Company’s defined benefit pension plans.
 
For active employees who are 55 or older, and have at least 30 years of service, the survivor death benefit percentage will be 75% of the employee’s unreduced benefit or the minimum monthly flat retirement benefit, whichever is greater.
 
Effective December 1, 2005, an Employee who retires having fulfilled the requirements for a disability benefit will be entitled to a disability benefit equal to the greater of:
 
(a)      the normal retirement benefit he/she has accrued up to the date his/her employment terminates on account of such disability or
(b)       a minimum monthly benefit equal to the Minimum Normal Retirement Benefit.
 
SECTION 4. Effective July 1, 1988, all eligible employees covered by this Agreement may elect to participate in the Connecticut Natural Gas Corporation Union Employee Savings Plan and receive the company match as outlined below.
 
 

Years of Service                            Age                 Match

20 or more or                                   45       =         4.5%
10 or                                                35       =          3%
Less than 10 and under                   35       =          2%.
 
Said plan shall continue for the life of the Agreement entered into December 1, 1988 and succeeding Agreements subject to such modifications as may be mutually agreed upon by the parties thereto.
 
For employees hired on or after December 1, 2009, the Company’s matching contribution under the CNG 401k Savings Plan will be 1.50 times the employee’s contribution. The Company’s matching contribution will only apply to the first 6% of an employee’s contribution during a calendar year. This benefit is in lieu of any other pension plan benefit for employees hired on or after December 1, 2009.
 
Effective July 1, 2010, the Plan will be amended to include a Roth investment option which will be available to all employees eligible to participate in the Company’s 401k plan.
 
Effective July 1, 2010, the Plan will be amended to include withdrawals beginning at 59½ years of age.
 
NOTE: Retirement Plan, 401k Plan incorporated by reference. CD’s available upon request.