The Railroad Employees National Early Retirement Major Medical
Benefit (ERMA) Plan 2020 Lifetime Maximum
Railroad Accounts November 19, 2019
185 Asylum Street, Hartford, CT 06103
PO Box 150476
Hartford, CT 06115-0476
Mr. David Marcus
Director Employee Benefits
National Railway Labor Conference
251 – 18th Street South, Suite 750
Arlington, V.A. 22202
At the end of 2001, Labor and Management had agreed on various procedures to administer the annual changes in the amount of the lifetime maximum benefit under the ERMA Plan. This letter provides information for 2020 consistent with these procedures.
1. In conjunction with the formula established in 2001, we have calculated the new lifetime maximum by utilizing the October 2019 CPI data for Hospital and Related Services and Physician Services. We weighted these individual components using Plan specific types of service and applied this composite product to the current lifetime maximum to obtain the incremental value for the upcoming year. The result is a lifetime maximum for 2020 of $171,100.
2. For individuals who have reached the lifetime maximum, the incremental maximum available is applied to eligible expenses submitted for dates of service on or after the effective date of the new maximum. For 2020, this amount will be $4,700.
3. This change will apply to all railroads and crafts participating in ERMA.
This information will be communicated to our service center operations so that they may respond to inquiries on behalf of railroad employees seeking to understand the changes in the lifetime maximum and their retirement plans.
I hope this information is helpful.Paused
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