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Health Care Settlement Major Benefit to Union
Members
In July of 2006, WPEA (as a member of the
Health Care Bargaining Coalition) filed a grievance on
behalf of all general government and higher education
bargaining unit employees. We asserted that the State had
bargained to contribute a specific amount ($744) on behalf
of each bargaining unit member, and when the cost of health
care came in below that rate, the State decided to keep the
difference.
We felt we had a strong case for arbitration.
Within days of filing, the State agreed to settle the
grievance by paying a lump sum payment of $756 to each
bargaining unit employee represented by the Coalition for a
total cost to the state of approximately $55 million. The
settlement is part of the 2007-2009 collective bargaining
agreements. The Legislature will vote whether to fund those
agreements in the 2007 session.
Following are some frequently asked
questions regarding the settlement:
Will I receive the payment?
In order to receive the $756 lump sum, you must meet two
requirements:
1) You must be insurance eligible for the month of June
2007; and
2) You must be covered by a 2007-2009 collective bargaining
agreement negotiated pursuant to RCW 41.80. (All WPEA master
contracts covering general government and community college
employees meet this element, as well as the YVCC contract.)
What is insurance eligible?
You are insurance eligible if you are employed in a position
in which you could receive health insurance benefits if you
wanted. Even if you have declined coverage, as long as you
are in a covered position, you will receive the lump sum
payment.
FOR EXAMPLE: A husband and wife are both
bargaining unit employees in state service; however, the
wife has declined health care coverage through her job and
is instead covered under her husband’s medical plan. Both
employees will receive the lump sum. Each meets the two
requirements under the settlement agreement. Even though the
wife declined coverage, she is still eligible for coverage.
Will an employee covered under a federal
program, such as Tri-Care, who has declined State health
insurance coverage still receive the lump sum?
Yes. The employee still meets the two requirements to
receive the lump sum payment. Although the employee may have
declined coverage, the employee is still insurance eligible
for June 2007.
Do I have to do anything to receive it?
No. If you meet the two requirements, the lump sum amount
will be automatically added to your July 25, 2007, paycheck.
Is the lump sum subject to the usual tax
deduction?
Yes. The lump sum must be treated like any other wage amount
you receive from your employer due to IRS regulations.
Why is the solution to a grievance a part
of the 2007-09 contracts?
Incorporating the settlement into the contracts was the most
effective method to have the Legislature fund the
settlement.
Why do we have to wait until July 2007?
The payment will be made in July 2007, because the
settlement will be funded under the 2007-2009 contracts,
which do not become effective until July 1, 2007.
I plan to leave state service on June 15.
Will I still get the lump sum?
No. Although you meet the first requirement (being insurance
eligible for the month of June 2007), you don’t meet the
second requirement, which is that you are covered by the
2007-2009 contract, which does not take effect until July 1,
2007.
Do you have to be a union member to get
the lump sum?
No. You must simply be covered by one of the 2007-2009
contracts, which means you must be in a bargaining unit. All
bargaining unit employees, regardless of their union
membership status, are eligible for the lump sum as long as
they are also insurance eligible for June 2007.
Why don’t unrepresented employees get the
lump sum?
The union negotiated in the 2005-2007 contracts that each
employer would contribute a specific dollar amount for each
represented employee’s health care premium. This specific
guarantee was at the heart of the coalition’s grievance. The
Legislature was not required to fund unrepresented employees
at the same level and did not.
If I’m on Family Medical Leave in July
will I still get the lump sum?
Yes. You will still receive the lump sum as long as you were
insurance eligible in June and covered by one of the
2007-2009 contracts in July 2007.
If I have run out of FMLA and am on shared
leave in July, will I get the lump sum?
Yes. The same test applies. You just have to be insurance
eligible in June and covered by one of the 2007-2009
contracts in July 2007.
If I think I’m eligible for the lump sum
and don’t get it, what do I do?
If you are certain you meet the two requirements, you should
first contact your payroll office. If you still don’t
receive it even after speaking with payroll, you should
contact WPEA. |
2007 Monthly Rates