3.7 Termination and Cancellation of Coverage
3.7.1 Voluntarily Terminating Your Coverage
You can terminate your Retiree Health Plan coverage by sending a written request to the Administrative Office.
You can terminate your Spouse's Retiree Health Plan coverage by sending a written request to the Administrative Office. You and your Spouse must sign the written notice, and your signatures must be notarized.
When the Administrative Office receives your termination request, coverage will be terminated effective on the last day of the following month.
For example, if the Administrative Office receives your request on May 15, coverage will end on June 30.
Once Retiree Health Plan coverage has been terminated for you and/or your Spouse, the individual whose coverage was terminated will not be permitted to re-enroll in Retiree Health Plan coverage.
If you terminate your Retiree Health Plan coverage, your Spouse's coverage will also be terminated.
3.7.2 Non-Covered Electrical Employment
Non-Covered Electrical Employment is defined by the Southern California IBEW-NECA Pension Plan Document at Article 1, Section 16 as "any kind of work which is performed:
- in the jurisdiction of any union whose members are Participants in the Southern California IBEW-NECA Pension Plan or in the jurisdiction of any other local of the International Brotherhood of Electrical Workers (IBEW) that maintains a Related Plan, and
- both on or after October 1, 1987, and on or after the date the Participant becomes an Active Participant in the Southern California IBEW-NECA Pension Plan, and
- as an employee, supervisor, sole proprietor, officer, director, partner or corporate owner, and
- for an entity or as a sole-proprietor, partner or owner performing services in the same trade, craft or industry covered by the Plan, and
- is not subject to a collective bargaining agreement requiring contributions to the Southern California IBEW-NECA Pension Plan or a like or Related Plan between the Union and an Employer sponsored by either a local Chapter of NECA or an affiliated local Union of the IBEW.
- Employment which is not subject to a collective bargaining agreement for an Employer who is signatory to a collective bargaining agreement with the Union or an affiliated local Union of the IBEW shall not constitute Non-Covered Electrical Employment.
- Any work or employment on or after March 1, 2005 for an electrical instruction program, electrical training program, or retail-based instruction other than an IBEW-NECA sponsored training program shall be considered to constitute ‘Non-Covered Electrical Employment.' In the event a Participant engages in the aforementioned work or employment under this sub-section (g) on or after March 1, 2005, all benefits accrued by the Participant on or after March 1, 2005 shall be suspended until the Participant attains Normal Retirement Age.
- This Subsection is added as a reforming remedial Amendment in accord with Revenue Procedure 2005-23. Effective June 1, 2004, all provisions of the Southern California IBEW-NECA Pension Plan requiring suspension of Early Retirement Benefits until Normal Retirement Age and/or ineligibility for Early Retirement Benefits due to Non-Covered Electrical Employment shall apply solely to benefits accrued on and after October 1, 1987. The provisions of Southern California IBEW-NECA Pension Plan at Article 9, Section 9.7, providing for month-to-month suspension of benefits for Suspendible Employment, including but not limited to Non-Covered Electrical Employment, shall continue to apply to all benefit accruals and to the remedial payments under this Subsection. A separate and distinct remedial Amendment shall be adopted related to Suspendible Employment."
For purposes of the Retiree Health Plan, if you engage in Non-Covered Electrical Employment after you first qualify for coverage under the Active Health Plan, or while you are covered under Retiree Health Plan coverage, your rights to Retiree Health Plan coverage (if any, ongoing or future) are lost; and
If you later earn at least five (5) years of Credited Service under the Southern California IBEW-NECA Pension Plan after the date you first engaged in Non-Covered Electrical Employment, you could regain eligibility for Retiree Health Plan coverage. However, if you again engage in Non-Covered Electrical Employment after you have regained eligibility rights for Retiree Health Plan coverage, you will permanently lose your eligibility rights and will not be able to regain the ability to elect Retiree Health Plan coverage.
If your Retiree Health Plan coverage is terminated due to Non-Covered Electrical Employment, you and your Eligible Spouse will be offered non-subsidized COBRA coverage and conversion rights to the extent required by applicable law.
3.7.3 Double Coverage Cancellations
Medicare rules do not allow a Medicare-eligible Retiree to be enrolled in two Medicare at-risk health plans. This restriction also applies when you are covered under two health plans with the same benefit option. For example:
- You have coverage as a Participant in the Retiree Health Plan and select the Kaiser Permanente HMO; AND
- You have coverage as Dependent under your Spouse's health coverage and select the Kaiser Permanente HMO.
If you have coverage under two Medicare-at-risk health plans, you will be advised that you must cancel your coverage under one of your health plans.
If you cancel coverage under the Retiree Health Plan because you received a double-coverage notice, you can later enroll in Retiree Health Plan coverage when your coverage from the other health plan ends.
You must enroll in Retiree Health Plan coverage within 30 days of the date your other health plan coverage ends. At the time of re-enrollment, you must provide written documentation demonstrating that:
- You canceled your Retiree Health Plan coverage due to a double coverage notice;
- Your other health plan coverage is ending; and
- You have been covered under the other health plan, without interruption, since the date your Retiree Health Plan coverage was canceled.
If you do not complete Retiree Health Plan re-enrollment within 30 days of the end of your other coverage, you will permanently lose the ability to enroll in Retiree Health Plan coverage.
3.7.4 Other Terminations
- The Board of Trustees may change, modify, reduce or terminate the Retiree Health Plan at any time.
- Coverage for your spouse will be terminated if your spouse ceases to meet the definition of an eligible dependent under the Retiree Health Plan.
- A retiree who has his monthly pension benefit withheld or suspended, in whole or in part, by the Southern California IBEW-NECA Pension Plan, (for example due to the Annual Verification Process) will have his retiree health coverage cancelled commencing with the first day of the month following the month in which the Pension Plan issues the written suspension notice to the retiree. Unless otherwise provided in the Plan, your eligibility for retiree health coverage resumes in the month the Pension Fund next issues you a pension check(s).