National Agreement Summary Statement February 2012

SUMMARY STATEMENT OF TENTATIVE NATIONAL AGREEMENT

PROVIDED PURSUANT TO ARTICLE XIX, SECTION 14 OF THE BYLAWS OF THE NATIONAL DIVISION

The terms of the tentative National Agreement, save those Railroad-specific arrangements regarding allowances for employees working away from home, are identical to the agreements reached by the other members of the Rail Labor Bargaining Coalition.

Wages

General wage increases in the following percentage amounts:

July 1, 2010 .............. 2.0%
July 1, 2011 .............. 2.5%
July 1, 2012 .............. 4.3%
July 1, 2013 .............. 3.0%
July 1, 2014 .............. 3.8%
January 1, 2015 ........ 3.0%

Wage increases for the period July 1, 2010 until effective date of the agreement will be paid retroactively within 60 days of ratification.

Lump sum payment consisting of 1.0% of straight time earnings between November 1, 2010 and October 31, 2011 after rates have been adjusted to include the wage increases of July 1, 2010 and July 1, 2011. Payment made within 90 days of ratification.

Health & Welfare

Cost Sharing Payments:

Monthly employee cost-sharing payments frozen at the lesser of 15% of Carriers’ payment rate or $200.00 until July 1, 2016. After July 1, 2016, cost-sharing payments are the lesser of 15% of the Carriers’ payment rate or $230.00

Changes to MMCP:

Effective July 1, 2012, the following changes are made to the Managed Medical Care Program (“MMCP” or “Network Provider”):

Emergency Room co-payment for in-network services -- $75.00

Urgent Care Center co-payment -- $20.00

“Convenient Care Clinic” co-payment -- $10.00

· No other changes to co-payment amounts for primary care or specialists

Establishment of first dollar deductible payment (amount you must pay before eligible for MMCP copayment schedule) as follows:

· July 1, 2012 through December 31, 2012 - $100 (single) / $200 (family)

· January 1, 2013 through December 31, 2013 - $150/$300

· January 1, 2014 until changed - $200/$400

Establishment of 95/5 co-insurance (insurance pays 95% of charges subject to the following “out of pocket payment” limits each year) as follows:

· July 1, 2012 – December 31, 2012 - $500 (single)/ $1000 (family)

· January 1, 2013 through December 31, 2013 - $750 (single)/ $1500 (family)

· January 1, 2014 until changed by later agreement - $1000 (single)/ $2000 (family)

The co-insurance payment is 5% of the doctor’s charges for which the fixed dollar co-payment under MMCP does not apply.

Changes to Prescription Drug Benefits:

Prescription drug co-payments as follows:

	Retail (21 day supply)	Mail Order (90 day supply)
Generic	$5.00	$5.00
Brand Name formulary	$25.00	$50.00
Brand Name non-formulary	$45.00	$90.00

Prior authorization, “step therapy” and “quantity/duration limits” by pharmacy benefit manager for drugs listed on Exhibit C (attached). Prescriptions for such drugs are subject to approval by Medco, which also will specify the type, amount and duration of the prescription for such drugs subject to an appeal process. No new drugs can be placed on the list without agreement of Labor and Management. (These same prior authorization rules apply to employees who retire on or after July 1, 2012 – those who retired earlier are unaffected by the changes.)

Flexible Spending Account:

Effective January 1, 2013, establishment of a Flexible Spending Account (FSA) which permits an employee to have deducted on a pre-tax basis up to $2500 from his/her wages to be used to pay medical expenses (doctor visits, eyeglasses, prescription drugs, dental, etc.)

Supplemental Sickness

Benefits are adjusted to restore the same ratio of benefits to rates of pay that existed on December 31, 2009. On July 1, 2012 and each July 1st thereafter until changed by agreement, the benefits will be adjusted to keep the same ratio as existed on December 31, 2009. This provision keeps the value of the benefits current with all general wage increases.

Moratorium

Agreement effective through January 1, 2015. On or after November 1, 2014 BMWED or Carriers may serve notice to change terms of the agreement, such changes to be effective no earlier than January 1, 2015.

Away From Home Expense Allowances

Employees working for Canadian Pacific (Soo), CSX, Kansas City Southern (and subsidiaries), Norfolk Southern, Union Pacific and Burlington Northern Santa Fe subject to property-specific agreement changing current away from home expense allowances. Details will be provided on a carrier by carrier basis to affected employees.

Norfolk Southern Rate Disparities

Side Letter No. 5 provides that BMWED and NS may engage in continued peaceful handling of the dispute until at least December 31, 2012. The Side Letter does not permit BMWED to strike after December 31, 2012 if the issue remains unresolved.

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