![]() In December 2007, UPS sent a revised SMM to Local 705 retirees in which UPS stated that he average cost per participant for the UPS Health and Welfare Package for Retired Employees has exceeded $6,250. Juan Campos, Local 705's recording secretary, protested to Dan Hoyer, UPS's North Central Regional Labor Relations Manager, that this notice was premature because negotiations for a new CBA were not expected to begin until the summer of 2008. Therefore, effective January 1, 2008, the per retiree contribution of $50 per month will increase to $114.33 per month." Def. In October 2007, UPS sent a Summary of Material Modifications (SMM) to all IBT International and Local 705 retirees in which it stated that the average annual cost per participant of the HWP exceeded $6,250 and that "each retiree will share equally in the cost above the $6,250 maximum by making an additional contribution. Alan Rapp, UPS's Corporate Healthcare Manager, testified that the average annual cost per participant has been at least $7,000 since 2006. If required, the additional contributions *925 would not be implemented until after the expiration of the current collective bargaining agreement.īeginning in 2006, the average annual cost per Plan participant exceeded the $6,250 cap. The $6,250 maximum cost per participant is subject to future negotiations. If the average annual cost per participant exceeds $6,250, each retired employee will share equally in the cost above the $6,250 maximum by making an additional contribution. Each retired employee, each spouse, and each eligible dependent would be considered a Plan participant. The SPD further stated, however, that an additional contribution may be imposed based on the average annual cost per participant: The average annual cost per participant is defined as the total claims paid by the Plan in a calendar year, divided by the total number of Plan participants during that year. This contribution covers the retired employee, spouse and any eligible dependent children." Def. With respect to retired employees' contributions to the HWP, the Summary Plan Description (SPD) stated that "ll retired employees are responsible for a $50 per month contribution for their medical coverage. ![]() The CBA stated that "Health and Welfare insurance will be provided for full-time employees and retired employees during the term of this Agreement as outlined in the new UPS Health & Welfare Package Summary Plan Description." Def. As part of that agreement, UPS agreed to provide health insurance to retired employees in the form of the Health and Welfare Package (HWP). In 2002, UPS and Local 705 negotiated and agreed on a CBA that would expire in July 2008. IBT Local 705 is one of the local unions that negotiates a separate CBA with UPS. UPS employs members of the International Brotherhood of Teamsters (IBT) and negotiates collective bargaining agreements (CBA) with the international union (IBT International) and separately with a few IBT locals. This constitutes the Court's findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a). ![]() In addition, the parties agreed to a certification of a class of similarly situated persons pursuant to Federal Rule of Civil Procedure 23(b)(2). During the preliminary injunction hearing, the Court, with the parties' consent, consolidated the hearing with the trial on the merits pursuant to Federal Rule of Civil Procedure 65(a)(2). ![]() Plaintiffs moved for a preliminary injunction pursuant to Federal Rule of Civil Procedure 65 and section 502(a)(3) of ERISA, 29 U.S.C. Plaintiffs contend that defendants raised the amount of contributions required of retirees for health insurance in violation of the terms of the Plan. (UPS), alleging a violation of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. Ignacy Green and Patrick Cooper filed this suit on behalf of a putative class against the UPS Health and Welfare Package for Retired Employees (Plan) and United Parcel Service of America, Inc. Clark, John Allen Klages, Andrew Fisher Hettinga, Quarles & Brady LLP, Chicago, IL, for Defendants. Ryan, Baum Sigman Auerbach & Neuman, Ltd., Chicago, IL, for Plaintiffs. *924 Jeffrey Bensley Gilbert, Johnson, Jones, Snelling & Gilbert, Stephen Jay Rosenblat, Baum, Sigman, Auerbach, Pierson, Neuman & Katsaros, Ltd., Patrick N. The UPS HEALTH AND WELFARE PACKAGE FOR RETIRED EMPLOYEES, United Parcel Service of America, Inc., and Plan Administrator, Defendants. 746 F.Supp.2d 921 (2009) Ignacy GREEN, Patrick Cooper, and all those similarly situated, Plaintiffs,
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