ARTICLE XI: Insured Benefits

Life Insurance

11.1.1 The Employer agrees to pay for all full-time employees, on the first day of the next full month following a thirty (30) day waiting period the premiums required to provide Twelve Thousand Five Hundred dollars ($12,500) of group life insurance. The Employer agrees to pay for all full-time employees on the payroll who have ten (10) or more years of service with the Employer, the premiums required to provide an amount of group life insurance coverage equal to the employee's annual straight-time base pay in lieu of severance pay provided for in the previous contract.

11.1.2 The Employer shall continue the Five Hundred dollar ($500) life insurance policy for eligible employees who retired on or before December 3 1, 197 1, or at its sole discretion, pay the Five Hundred dollar ($500) amount to such eligible retired employees and terminate the continuing obligation to provide such life insurance policy.

11.1.3 The Employer shall continue the One Thousand Five Hundred dollar ($1,500) life insurance policy for those employees who retired after December 3 1, 197 1 but before May 1, 1987, or, at its sole discretion, pay the One Thousand Five Hundred dollars ($1,500) to each such eligible retired employee and terminate the continuing obligation to provide such life insurance policy.

11.1.4 The Employer shall continue the Two Thousand Five Hundred dollar ($2,500) life insurance policy for those employees who retired after on or after May 1987 but prior to December 1,2001 or, at its sole discretion, pay the Two Thousand Five Hundred dollars ($2,500) to each such eligible retired employee and terminate the continuing obligation to provide such life insurance policy.

11.1.5 The selection of the insurance carrier to provide the life insurance coverage referred to above shall be the sole prerogative of the Employer.

Medical Coverage

11.2.1 The Employer agrees to provide medical coverage for full-time employees and their eligible dependents through the medical coverage plan now being provided through Anthem Blue Cross and Blue Shield of Maine. The Employer reserves the right to change insurance carriers or self-insure the plan provided the terms of any new coverage or plan are substantially equivalent to the existing Anthem Blue Cross and Blue Shield of Maine plan which has been in effect since January 1, 1997.

11.2.2 The Employer continues to explore alternatives to the existing medical coverage plan and managed care option that are less costly to both the Employer and employees. The parties agree that should the Employer request a meeting to explore creating new, different or additional medical coverage plans or managed care options providing employees with less costly medical coverage options, the Union will meet with the Employer and engage in a good faith effort to determine whether the parties can agree upon such new, different or additional medical coverage plan or managed care option during the term of this Agreement.

11.2.3 The Union's obligation to meet and engage in a good faith effort to determine whether agreement can be reached which provide employees with a less costly medical coverage plan or medical coverage options in no way obligates it to agree to such new, different or additional medical coverage plan or managed care option. It is understood the above sentence does not restrict or change the right reserved by the Employer to change insurance carriers or self insure the medical coverage plan or managed care option provided the terms of any new coverage or plan are substantially equivalent to the existing plan which has been in effect since January 1, 1997.

11.2.4 The Employer shall also offer eligible employees a managed care option for medical insurance. The current option is HMO Choice from Anthem Blue Cross and Blue Shield of Maine. The Employer reserves the right to change insurance carriers for this option, provided the terms are substantially equivalent to those of the current managed care option.

11.2.5 The Employer shall also offer eligible employees a third choice for medical coverage offered through Anthem Blue Cross and Blue Shield of Maine called Blue Choice. The Employer reserves the right to change insurance carriers for this option, provided the terms are substantially equivalent to those of the current managed care option.

11.2.6 In accordance with the terms of the expiring Supplemental Agreement, effective January 1,2003, the Employer will pay eighty-five percent (85%) of the cost of the medical premium, including any premium rate increases for calendar year 2003 of up to fifteen percent (15%), for a participating employee and his/her enrolled dependents, if any, through calendar year 2003. The participating employee's share of the cost of his/her medical premium for calendar year 2003, including any premium rate increases in 2003 of up to fifteen percent (15%), shall be fifteen percent (15%).

11.2.7 Effective January 1,2005, the Employer will pay eighty percent (80%) of the cost of the medical premium, including any premium rate increases of up to fifteen percent (15%), for a participating employee and his/her enrolled dependents. The participating employee's share of the cost of his/her medical premium for calendar year 2005 and the remainder of the term of this Agreement, including any premium rate increases of up to fifteen percent (15%), shall be twenty percent (20%). If the premium rate increase for calendar year 2005, or any subsequent year during the term of this Agreement, exceeds fifteen percent (1 5%), in addition to paying its share of such premium rate increase, the Employer will pay one-half (112) of the employee's share of the premium rate increase in excess of fifteen percent (1 5%).

11.2.8 New full-time employees shall become eligible for coverage under the medical plan provided herein the first day of the next full month following a thirty (30) day waiting period following their date of hire.

11.2.9 The following named full-time employees who were fifty-five (55) years of age and who had twenty (20) years of continuous service as of December 1,2001, who retire after their sixtieth (60th) birthday but before their sixty-fifth (65th) birthday with twenty- five (25) years of continuous service shall have that percentage of the premium cost of the medical plan coverage for such employee which is paid by the Employer, paid until his/her sixty-fifth (65~) birthday. The employee shall pay the balance of the cost of such medical plan coverage. The Employer's obligation to pay such percentage of the premium cost of the employee's medical plan coverage shall cease when the employee reaches his/her sixty-fifth (65th) birthday. This paragraph does not apply to any full-time employee who becomes fifty-five (55) years of age after December 1,2001.

Menario, Joseph
Boissonneau, Terry
Crosby, Douglas
Seeley, Joseph
Connors, Joseph
Chase, Gerald

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11.2.10 To facilitate the administration of eligibility for coverage of part-time employees for medical insurance described above, the following provisions shall apply:

(a) Definitions:

Workweek shall be construed to mean the thirty-seven hours (37 hours) workweek as provided in this Agreement in Article 111, Section 3.1.

Regular hours shall be construed to mean all hours computed at the regular rate and paid to a part-time employee, not to include any overtime or any premium hours computed and paid for at one-and-one-half times the regular rate.

A part-time employee shall be construed to mean an employee covered by the provisions of this Agreement who works less than the fill workweek.

"Year" and: "six-month periods" unless otherwise stipulated, shall be construed to mean Employer's fiscal year which is fifty-two (52) or fifty- three (53) week period approximately coinciding with the calendar year January 1 through December 3 1 and the two (2) six-month fiscal periods approximately coinciding with the calendar six-month period January 1 through June 30, or, July 1 through December 3 1. It is understood the Employer's use of fiscal year and fiscal six-month period for accounting purposes may cause slight deviations from calculations based on the standard fifty-two (52) week calendar year.

Qualifying period shall be Employer's fiscal six (6) month period which approximately coincides with either the calendar six (6) month period January 1 through June 30, or, July 1 through December 31.

Eligibility period shall be the Employer's fiscal six (6) month period which approximately coincides with either the calendar period extending from February 1 through July 31st of the current year, or the six (6) month calendar period extending from August 1 of the current year through January 3 1 of the next year.

(b) Eligibility: If a part-time employee's regular hours average more than fifty percent (50%) of the contractual thirty-seven (37) hour workweek during a six (6) month qualifying period, such employee may elect to participate in the medical insurance coverage provided for above for the six (6) month eligibility period immediately following by paying a prorata share of the premium, with the Employer paying a prorata share of such premium cost equivalent to the percentage of the thirty-seven (37) hour workweek the employee averages during the six (6) month qualifying period.

The Employer shall pay a portion of the premium costs for eligible part- time employees who opt to participate in the program. The Employer's contribution shall be the dollar amount of the premium and any increase in the premium rate that the Employer pays, pursuant to Sections 11.2.6 and

11.2.7 of Article XI, Insured Benefits, for full-time employees with like coverage discounted by the percentage of the full-time workweek that a part-time employee averages. Eligible part-time employees who opt to participate in this program shall pay a pro-rata share of the Employer's cost.

Example: Full-time Employees

Assume Employer's cost for Group Medical Insurance is $700 per month. Full-time employee pays the contractually specified premium share and the Employer pays the remainder. If the Employer's cost is $700 and premium share is 15% the full-time employee pays $105 and Employer $595 for the coverage.

Example: Part-time Employees

If an eligible part-time employee works 415 (80%) of the workweek, premium costs would be shared as follows: Employer's share -$595 prem. paid for f/t employees x 80% = $476 Employee share -$700 total prem. -$476 Employer's share = $224 Total premium = $700

If the part-time employee averages less than fifty percent (50%) of the workweek for the six (6) month period from the date of hire, or any subsequent six (6) month qualifying period, he/she shall not be eligible for participation in the group medical programs or for prorated payment of premiums by the Employer until the employee has met the eligibility requirements set forth above.

Domestic Partner Coverage

11.3 Insurance coverage for same sex domestic partners and eligible dependents is available for the partners of eligible full-time employees covered by this agreement for medical and dental insurance coverage and the employee assistance program. Part-time employees who are eligible for medical coverage may cover their same sex domestic partners and eligible dependents under the medical insurance plan and they also may participate in the employee assistance plan.

Health Care Accounts

11.4.1 The Employer will continue Section 125 pre-tax premium paid for employee-paid group health insurance premiums. This plan will enable employees to pay their share of the health insurance premium by payroll deduction before State, Federal, and Social Security taxes are calculated and withheld. This plan is contingent on continuing approval from the IRS.

11.4.2 The Employer will continue its Health Care Spending Account established in accordance with Section 125 and 129 of the Internal Revenue Code, for the reimbursement of certain non-covered expenses under the group medical insurance plan. The maximum amount of pre-tax contribution which will be permitted for deposit into the plan will be set by the Employer each year. Year-to-year continuation of the plan is contingent upon compliance with applicable Federal and State laws, rules and regulations, and continuing approval from the Internal Revenue Service.

Dependent Care

11.5.1 The Employer will offer a "Dependent Care Reimbursement Plan" in accordance with Sections 125 and 129 of the Internal Revenue Code. Establishment of such a Plan will be contingent on a minimum commitment of five (5) eligible employees. These eligible participants must, as a group, pass appropriate non-discrimination tests for extension of the Plan.

11.5.2 From year-to-year continuation of the Plan will be contingent upon the minimum number outlined above, compliance with all testing, as well as compliance with any other applicable Federal or State laws, rules, or regulations.

Dental Plan

11.6 Full-time employees shall be eligible to participate in the Employer's dental insurance plan currently provided by Northeast Delta Dental. New full-time employees shall become eligible for dental coverage the first day of the next full month following a thirty (30) day waiting period following their date of hire. The Employer reserves the right to change insurance carriers or to self-insure the dental plan provided the terms are substantially equivalent to those of the existing dental plan. The Employer shall pay the full cost or premium for employee coverage. The employee shall pay the full cost or premium for any spouse and/or children covered by the dental plan.

Opt-out Plan

11.7 Once eligible, full-time employees may decide for themselves and their eligible dependents to be covered by the medical insurance plan, each year at the time of open enrollment. Eligible full-time employees may have the option of opting out of medical insurance coverage during the open enrollment period and back in during any subsequent open enrollment period or upon a change in qualifying conditions. The opt-out bonus currently is nine percent (9%) of the Employer's share of the cost of the coverage for which the employee is eligible or from which the employee opted-out in the case of a participating employee. In calendar year 2005 and thereafter, the aforesaid percentage shall be increased to ten percent (10%). The opt-out bonus will be paid in March of each year. No payments will be made to an employee who is terminated or who terminates his/her employment during the calendar year he/she opted-out on and after the employee's last day of employment.

Employee Assistance Program

11.8.1 The Employer will make available to eligible employees a voluntary Employee Assistance Program (EAP) subject to the following understandings:

11.8.2 The EAP shall be administered solely by the Employer; while it is the Employer's intention to continue this plan indefinitely, the Employer reserves the right to change providers and/or plan provision, or to terminate the plan should the employee participation fall too low to justify continuation, if legislation/regulation impact the pricing or administration of the plan beyond the current state or an alternative is more favorable. The Employer and EAP provider shall periodically conduct voluntary seminars for employees interested in participating in this plan so they can make an informed choice to participate or not. The Employer commits to advise the union of any changes in the design or administration of the plan in advance of such changes.

Eye Care -Video Display Terminals

11.9 The following applies to employees regularly assigned to operate Video Display Terminals (VDT). Any employee so assigned who experienced difficulties with his/her vision, shall be eligible for an eye exam by an optometrist of his/her choice or as recommended by Human Resources. The Employer shall pay one hundred percent (1 00%) of the cost of such eye examination as are not paid for by the Employer's medical insurance plan, if required. If it is determined that special lenses and/or tint (other than contact lenses) are required exclusively for any such employee to operate a VDT, and that the employee would not otherwise have a need for such lenses and/or tint, the Employer shall pay for their reasonable cost. Additionally, the Employer shall provide an allowance for frames not to exceed seventy-five dollars ($75.00). Any cost for frames in excess of this amount shall be paid by the employee. Should bifocals, trifocals or progressive lenses be prescribed as a result of the examination, but only one focal plane be required to operate a VDT, the Employer shall pay the appropriate prorated amount (be it 50 percent or 33.3 percent) of the cost of such lenses and/or tint. Payment for eye examinations and/or lenses and/or tint and/or frames exclusively required for VDT use would be made by the Employer once during any two-year period.