OE News Special Edition July 2013

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Benefits Plan Cost Analysis for 2011/12 As the tables below show, total benefit costs continue to increase year over year. Total costs for the fiscal year ended December 31, 2012 were $17,005,282 (pre-audit) as compared to $15,491,620 in 2011 amounting to an increase of $1,513,663 or 9.8%. The cost of providing all benefits per member per month was $310.76 in 2012 versus $306.45 in 2011. The hourly cost rose from $2.45 to $2.59. With the exception of Life Insurance and Long Term Disability all other benefits were higher in 2012. The one constant: your Plan continues to subsidize members’ medical benefits. Benefits Plan cOst analysis fOr 2011/2012 2012 Cost Breakdown Pre-audit 2012 costs 14 News Special Edition Summer 2013 Average Eligible Members Cost per Member per Month Cost per Hour Medical 5,820,815 4,483 $108.20 $0.87 Dental 4,628,679 4,338 $88.92 $0.71 Extended Health 4,576,920 5,173 $73.73 $0.59 Weekly Disability 800,104 3,443 $19.37 $0.15 Life Insurance 844,963 5,154 $13.66 $0.11 Long-term Disability 132,259 3,392 $3.25 $0.026 Family Assistance 125,091 5,173 $2.02 $0.016 AD&D Insurance 76,451 3,940 $1.62 $0.013 17,005,282 2011 Cost Breakdown Audited 2011 costs Average Eligible Members $310.76 $2.49 Cost per Member per Month Cost per Hour Medical 5,000,678 4,167 $100.01 $0.80 Dental 4,119,029 3,931 $87.32 $0.70 Extended Health 4,262,100 4,798 $74.03 $0.59 Weekly Disability 666,838 3,071 $18.10 $0.14 Life Insurance 1,127,900 4,777 $19.68 $0.16 Long-term Disability 136,154 3,019 $3.76 $0.030 Family Assistance 109,660 4,798 $1.90 $0.015 AD&D Insurance 69,261 3,455 $1.67 $0.013 15,491,620 $306.45 $2.45
The three largest cost centers Medical, Dental & Extended Health have risen significantly over the past twelve years. In 2012 their combined total was $15,026,413 – almost as much as all of the benefits in 2011. While the two pie charts below look very similar they are indeed different as their titles indicate. You can clearly see how Medical, Dental & Extended Health make up the majority total benefit costs. Benefits cOst DistriButiOn 2012 AD&D Insurance $76,451 Extended Health $4,576,920 Benefits cOst DistriButiOn 2011 AD&D Insurance $69,261 Extended Health $4,262,100 Dental $4,628,679 Dental $4,119.029 Medical $5,820,815 Medical $5,000,678 Family Assistance $125,091 Weekly Disability $800,104 Life Insurance $844,963 Long-term Disability $132,259 Family Assistance $109,660 Weekly Disability $666,838 Life Insurance $1,127,900 Long-term Disability $136,154 Special Edition Summer 2013 News 15
Page 1 and 2: News Special Edition: 38 th Annual
Page 3 and 4: MEssagE FRoM thE ChaiRMan Staying t
Page 5 and 6: a MEssagE FRoM thE tRustEEs Investm
Page 7 and 8: E & E May 7, 2013 ELLEMENT & ELLEME
Page 9 and 10: The interest rate impact The follow
Page 11 and 12: Greater certainty in all investment
Page 13 and 14: is this: for every 1% drop in long
Page 15: sOlvency valuatiOn Balance sheet AS
Page 19 and 20: aDministratiOn exPenses The followi
Page 21 and 22: REPORT OF THE INDEPENDENT AUDITOR O
Page 23 and 24: OPERATING ENGINEERS' PENSION PLAN S
Page 25 and 26: 34th annuaL pEnsion soCiaL Retirees
Page 27 and 28: 34th Annual Retirees’ Social Even
Page 29 and 30: 34th Annual Retirees’ Social Even
Page 31 and 32: REPORT OF THE INDEPENDENT AUDITOR O
Page 33 and 34: OPERATING ENGINEERS' PENSION PLAN S
Page 35 and 36: Local Union Offices District 1 and

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