Retiree Health Trust Fund (RHTF) – Q&A

The benefit plan for Unionized retirees of Magellan Aerospace has been in operation for 20+ years now, but there are many aspects that still remain either unknown or poorly understood amongst the membership. Both active and retired members often have questions that require clear answers to. The following is an attempt to provide concise and clear answers on the plan’s structure and operations.

Q – What is the purpose of the RHTF plan?

A –  The RHTF is a plan that provides medical benefits to eligible Union members who retire from Magellan (Bristol) Aerospace.

Q – Who is eligible for benefits under the RHTF plan?

A – To be eligible for benefits, you must be 55 years of age or over, be a member in good standing upon retiring from Magellan (Bristol) Aerospace, and have completed a minimum of ten (10) full years of service as a member of Unifor Local 3005. Severing service with the Company because of termination, lay-off, or by your own volition without declaring your intention to retire, will not qualify you as eligible under the plan.

Q – Does the plan cover anyone other than Retired members?

A – The RHTF will also pay benefits for the spouse of an eligible member on record at the time of the member’s retirement from Magellan (Bristol) Aerospace.

Q – How is the Plan funded?

A – The RHTF is funded by the company at the rate of $0.50 per hour worked by Unifor Local 3005 members as employees of Magellan (Bristol) Aerospace.

Q – What drugs are covered by the RHTF plan?

A – The RHTF will reimburse the cost of prescribed drugs that are approved under the Manitoba Pharmacare program, including those approved under the EDS formulary.

Q – Are Dental benefits covered by the RHTF plan?

A – The RHTF does not reimburse any Dental costs.

Q – What other benefits are covered by the RHTF plan?

A – In addition to prescription drugs, the RHTF has provisions for Vision Care, Physiotherapy, Ambulance, Foot Care and certain other medical supplies as stated in the Benefit Policy Summary.

Q – What vision care benefits are covered by the RHTF?

A -  The RHTF plan covers Vision care benefits, including exams, eye glasses and surgeries,  at 80% of cost. The maximum reimbursed is $250.00 every two years beginning immediately after retiring. This benefit may be accumulated if not used for a period of 4 years providing the accumulated total does not exceed $400.00 over the 48 months.

Q – Are covered benefits reimbursed 100%.

A – The RHTF only reimburses 80% of what a member actually pays for the eligible items purchased.

Q – What happens when a member and the spouse are both members of the plan on their own, as retired members of Local 3005?

A – If both spouses were retired from Magellan as members of Local 3005, the benefits are co-ordinated to provide coverage at 100% of the cost incurred (subject to annual maximum).

Q – How long is the RHTF coverage good for?

A – The RHTF will cover eligible members, including the member’s spouse, for the life of the member. Benefits terminate upon death of the member.

Q – Does the plan cover members out of country?

A – The RHTF covers members while residents of Canada. The plan does not provide benefits when living out of Canada.

Q – Who oversees the RHTF?

A – The RHTF is governed by a Board of Trustee composed of three Trustees that include the President of Local 3005, the Plant Chairperson, and a retiree Representative. The retiree representative is elected by retirees for a 3 year term. The President and Plant Chairperson hold the position ex-officio.

Q – Who processes claims and how are benefits paid?

A – Claims are review and processed for payment by an internal Plan Administrator, chosen and appointed by the RHTF board of Trustees, with the approval of the Local Executive, and by the membership at a subsequent General meeting.

Q – Can the Plan be amended?

A – The plan can be amended under the recommendation of the Plan’s Board of Trustees, subject to the approval of the membership (all affected members, both active and retired members). The process would be similar to changing the Collective Bargaining Agreement (except that changes to the CBA can only be voted by active members).