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Within the next month, the Fund
office will send all retirees a
Retiree Information Form (RIF) to be
completed and returned to the Fund
office. The form asks questions about
your current address, beneficiary
information, and employment
information (if you are employed
after retirement).
It is very important that you review all
sections of this form to be certain the
information is correct. If necessary, mark
corrections on the form and promptly
send it back to the Fund office. If we
don’t receive your RIF, your benefits
may be suspended until it is received.
To assist you, the Fund office will include
a postage-paid, return envelope with the
first mailing.
No one but the participant can sign the
RIF, unless there is a Power of Attorney.
If so, a copy of the Power of Attorney
must be on file with the Fund office. If,
for health reasons, the retiree is unable
to sign the form and there is no Power
of Attorney on file, then the retiree
must sign an “x” on the RIF and have it
notarized showing the Notary Public seal.
ForYour BenefitOperating Engineers Local No. 77 Funds April 2010 Vol. 10, No. 2
www.associated-admin.com
The purpose of this newsletter is to explain your benefits in easy, uncomplicated language. It is not as specific or detailed as the formal Plan documents. Nothing in this newsletter is intended to be specific medical, financial, tax, or personal guidance for you to follow. If for any reason, the information in this newsletter conflicts with the formal Plan documents, the formal Plan documents always govern.
retirees: return rIFs Promptly to avoid Suspension of Benefits
Effective April 1, 2010, the Board of
Trustees approved a change in the
co-pay rate for generic drugs when filled
at a CVS Pharmacy or through CVS
Caremark Mail Service Pharmacy. The
chart below shows the new prescription
benefit program.
Four EaSY WaYS ToConTaCT CVS CarEMark:
1. Caremark.com
Caremark.com is an easy, round-the
clock way to order refill prescriptions,
check order status and get important
medication information.
2. Automated Phone System
Call toll-free 1-866-282-8503 for the
CVS Caremark fully automated refill
phone service.
This issue— RETIREES: RETURN RIFS PROMPTLy
TO AVOID SUSPENSION OF BENEFITS . .1
CHANgE IN CO-PAyMENT
FOR gENERIC DRUgS . . . . . . . . . . . . . .1
MICHELLE’S LAW ExTENDS STUDENT
COVERAgE DURINg ILLNESS . . . . . . . .3
Q&A: WHEN MEDICATION PREVENTS
yOU FROM OPERATINg EqUIPMENT . . .3
gETTINg yOUR PRESCRIPTION FILLED . .4
RETIREES: WHEN yOU WORk MORE
THAN 39 HOURS A MONTH, yOUR
PENSION BENEFITS ARE SUSPENDED . . .4
IS yOUR MEDICAL PROVIDER SENDINg
CLAIMS TO CAREFIRST? . . . . . . . . . . . . .5
OPEN ENROLLMENT FOR THE 401(k)
OPTION IS JULy 1ST . . . . . . . . . . . . . . .5
SUMMARy OF
MATERIAL MODIFICATIONS . . . . . . . . . .6
HELP yOUR CLAIMS BE PAID qUICkLy .8
Questions about Your Benefits? Call the Fund office at
(877) 850-0977. Press “1” to reach the Automated Benefit
Information System or Press “2” to speak with a representative.
Material
Modification
Summary of Material Modifications(Changes) This Issue!
Operating Engineers Union
Local No. 77 Health and Welfare Fund
Operating Engineers Union
Local No. 77 Pension Fund
Operating Engineers Union
Local No. 77 Individual Account FundContinued on page 2
Change in Co-Payment for Generic Drugs
The following is a Material Modification (change) to your Health and Welfare Program Summary Plan Description (“SPD”).
Please keep this notice with your benefits materials.
2
3. Customer Care
If you need assistance you can contact
Customer Care 24 hours a day,
7 days a week. you have two easy
ways to reach them: by email at
or call toll-free at 1-866-282-8503.
4.Telecommunications Device (TDD)
If you have a hearing impairment
and need TDD assistance, please
call toll-free 1-800-231-4403.
WHEn You Call or loG In, BE rEaDY To ProVIDE:
• your Employee ID number
• your date of birth
• your VISA, Discover, MasterCard
or American Express number with
expiration date or your Bill Me
Later and electronic check processing
information (registration is required),
if you are paying the prescription
co-payment.
Do You nEED anoTHErPrESCrIPTIon CarD?Additional prescription cards can be
obtained by calling Customer Care
toll-free at 1-866-282-8503.
Change in Co-Payment for Generic Drugs (Continued from page 1)
network retail Mail Service Pharmacy
CVS/pharmacy Pharmacy
For immediate For immediate For immediate
and long-term* and long-term* and long-term*
medicine needs medicine needs medicine needs
Up to a • $5 for each • $5 for each
30-Day Supply generic medicine generic medicine
• 40% for each 40% for each
brand-name brand-name Up to a 90-day supply
medicine on the medicine on the
drug list drug list
Maximum
Allowable $10,000 per year $10,000 per year
Benefit
Refill Limit One initial fill plus One initial fill plus • $10 for each
three refills for three refills for generic medicine
long-term* long-term*
medicines per medicines per • 40% for each
rolling year rolling year brand-name
medicine on
the drug list
90-Day Supply Not Available • $10 for each
generic medicine
• 40% for each
brand-name
medicine on the
drug list
* A long-term medicine is taken regularly for chronic conditions or long-term therapy. A few examples include medicines for managing high blood
pressure, asthma, diabetes, or high cholesterol.
3
Michelle’s law Extends Student Coverage During Illness
The following is a Material Modification (change) to your Health and Welfare Summary Plan Description (“SPD”). Please keep this notice with your benefits materials.
The Board of Trustees has adopted
the following change to the Health
and Welfare Fund.
Effective January 1, 2010, the following
language is added at the end of the
section entitled “Student Coverage”
in your SPD:
If a dependent child enrolled in Student
Coverage ceases to be a full-time student
at an accredited school because of a
medically necessary leave of absence
resulting from a serious injury or illness,
coverage under this Plan will be extended
to the dependent during his or her
leave of absence until the earlier of:
1. the one-year anniversary of the date
on which the dependent child’s leave
of absence began, or
2. the date on which the dependent
child’s coverage under the Plan would
otherwise terminate in accordance
with this section.
To be eligible for this extended coverage,
you must provide the Plan with written
certification from the dependent child’s
treating physician that his or her leave
of absence from school is medically
necessary and is as a result of a serious
illness or injury. The extended coverage
will not be provided until the date such
certification is received by the Fund, but
will be retroactive to the date on which
his/her leave of absence began.
Material
Modification
When Medication Prevents Youfrom operating Equipment
Q A yes. If you are taking a prescribed medication which
prevents you from operating machinery, you may be
eligible for Weekly Accident & Sickness benefits for a
maximum of six weeks (or the length of time you take
the medication, whichever is less).
To be eligible for benefits, the Fund office must receive
a note from your doctor. The doctor must indicate the
medication prescribed, the length of time you must take
the medication and that it is a medicine that prevents
you from operating machinery.
For more information about this provision, call the Fund
office at (877) 850-0977 and ask for the Accident &
Sickness Department.
&Q AMy doctor prescribed a medication that
instructs me not to operate machinery.
Since I’m a machine operator, can I receive
Weekly Accident & Sickness benefits?
4
Getting Your Prescription Filled
WHEn You nEED a90-DaY SuPPlY:
CVS/PHarMaCY you have the convenience of getting
your 90-day medications at one of our
6,900 CVS/pharmacy locations for your
mail service co-pay. At CVS/pharmacy
you can speak with a pharmacist face-
to-face and enjoy same day prescription
availability.
CVS CarEMark MaIlSErVICE PHarMaCYCVS Caremark Mail Service Pharmacy
operates five mail service pharmacies
across the United States to provide
quick service to plan participants
wherever they live. To ensure your safety,
CVS mail service pharmacies are staffed
by registered pharmacists. Just like your
neighborhood pharmacist, a CVS
pharmacist checks each prescription
to make sure it is filled correctly. In
addition, your prescription history is
reviewed to identify possible drug inter-
actions or allergies you may have with
new medications you are prescribed.
ConVEnIEnT HoME DElIVErYPlease allow 7-10 days for delivery
from the time your order is placed. your
package will include a new mail service
order form and an invoice, if applicable.
you will also receive the same type
of information about any prescription
medication that you would receive
from a retail pharmacy.
DaY SuPPlY lIMITyou can get a 90-day supply of medica-
tion when you get your prescription
filled at a CVS/pharmacy location or
through the CVS Caremark Mail Service
Pharmacy. Ask your doctor or to write
a prescription for a 90-day supply plus
refills, when clinically appropriate.
WHEn You nEED a30-DaY SuPPlY:you can get up to a 30-day supply
of medication each time you have a
prescription filled at a participating retail
pharmacy. Ask your doctor to write a
prescription for up to a 30-day supply
plus refills, when clinically appropriate.
Please Note: By law, CVS Caremark must
fill your prescription for the exact quantity
of medication prescribed by your doctor,
up to the 90-day supply limit. “30-days
plus two refills” does not equal one
prescription written for “90-days.”
WHaT IF You uSE a non-ParTICIPaTInGPHarMaCY or Don’T HaVE Your PrESCrIPTIonCarD WITH You?you will be asked to pay 100 percent
of the prescription price at the pharmacy
should you lose or forget your
prescription card. If you paid the full
prescription price, you will need to
submit a paper claim form, along with
the original prescription receipt(s), to
CVS Caremark for reimbursement of
covered expenses. you can download
and print a claim form when you log
in to Caremark.com or call the
Customer Care toll-free number
on your prescription card.
retirees: When You Work More Than 39 Hours a Month, Your Pension Benefits are Suspended
The following article applies to active participants in the Local 77 Pension Fund and all retirees actively collecting a pension benefit under Local 77.
If you are a retiree and employed
as an Operating Engineer within the
geographic jurisdiction of Local 77 for
more than 39 hours in a month, your
pension benefit payments will be
suspended. Benefits will resume once
you stop working or work less than
40 hours in the calendar month.
Remember these rules:
• Retirees under age 65 cannot
work at all.
• Retirees over age 65 can work
39 hours or less.
• Retirees age 70 ½ and over can work
without limits.
Please be advised that any work
as an Operating Engineer within the
geographic jurisdiction of Local 77
must be dispatched from the union hall.
If there are circumstances in which you
become employed and are uncertain
whether the suspension of benefit rules
will apply to you, contact the Union
office or the Fund office and your
specific situation will be reviewed by
the Board of Trustees.
5
Is Your Medical Provider Sending Claims to CareFirst?
Whenever you go to a provider
(whether a hospital, physician, or
another health care provider), be sure to
let him/her know that your Plan no
longer uses OneNet PPO, but now uses
CareFirst PPO. Show the office staff your
new medical ID card and point out that
all claims MUST be sent to CareFirst (notOneNet) in order to be paid.
If your claim is sent to OneNet, the
Fund office may not receive it within
the Plan’s 365-day filing deadline. It is
ultimately your responsibility to be sure
your claim is filed with the Fund office.
Remember, all claims, including secondary
claims, must be filed within 365 days.
HoW Can I BE SurE MYClaIM WaS SEnT ToCarEFIrST?Call the Automated Benefit Information
System toll-free at (877) 850-0977
(available 24-hours a day, 7 days a week),
or talk to one of our Participant Service
representatives to check the status
of a claim.
Look for an Explanation of Benefits
(“EOB”) in the mail from the Fund
office. This will let you know your claim
has been received. Normally, an EOB is
sent to you and the provider in four to
six weeks.
If you think we did not receive your
claim, you should contact the provider
and ask that the claim be filed with
CareFirst immediately.
open Enrollment for the 401(k) option Is July 1st
If you have not enrolled in the 401(k)
Option and are interested in doing so,
now is the time!This Option is a provision
of the Individual Account Plan (Annuity
Fund). It allows your savings to go
further because the money is saved
on a pre-tax basis.
HoW DoES a 401(k) Work?Saving in a 401(k) Option is easy
through payroll deduction. Because your
contribution is taken before your check
is taxed, it’s worth more to you in
the 401(k) than it would be in your
paycheck, where it would be reduced
by income taxes.
HoW MuCH Can I PuTInTo THE 401(k)?you can contribute up to a maximum
of $3.00 per hour worked, in 50-cent
increments. For example, you may
choose to save $.50 an hour, $1.00,
$1.50, $2.00, $2.50, or even $3.00 per
hour worked. And, very importantly,
your contribution is pre-tax.
As an example, let’s say Justin earns
$25,000 a year. His federal income tax
rate is 28%, and his state and local taxes
add up to another 4% for a total 32%
tax rate. Justin contributes $1,000 a year
to the 401(k) Plan. That reduces his
taxable salary to $24,000. But it also
cuts his income taxes by $320 (32%
of $1,000).
Justin has saved $1,000 but his
take-home pay isn’t reduced by $1,000
a year. It’s only reduced by $680.
HoW Do I knoW HoWWEll MY InVESTMEnTS arE DoInG?you’ll receive a financial statement of
your 401(k) account on a quarterly
basis from MassMutual Financial
group that shows the amounts
you’ve contributed and how all
your investments have performed.
ParTICIPaTIon In THE 401(k)Participation in this Option is totally voluntary. you may stop making
contributions or change the amount
every six months (January 1st and July
1st) by completing a Participant
Information Change form.
For MorE InForMaTIonyou can receive answers to questions
about the 401(k) Plan, investment
options, or account information by
calling Mass Mutual at (800) 743-5274
or logging onto www.massmutual.com.
6
Summary of Material ModificationsBelow are Summary of Material Modifications (changes) made to your Plans during the past year. Please readover them and clip them where indicated so you can keep them with your Summary Plan Description (“SPD”)
booklets and your other benefits information.
oPEraTInG EnGInEErSunIon loCal no. 77HEalTH anD WElFarEFunD
• Effective April 1, 2010, the Board of
Trustees approved a change in the
co-pay rate for generic drugs when
filled at a CVS Pharmacy or through
CVS Caremark Mail Service
Pharmacy. The chart below shows the
new prescription benefit program.
Four EaSY WaYS ToConTaCT CVS CarEMark:
1. Caremark.com
Caremark.com is an easy, round-the
clock way to order refill prescriptions,
check order status and get important
medication information.
2. Automated Phone System
Call toll-free 1-866-282-8503 for the
CVS Caremark fully automated refill
phone service.
3. Customer Care
If you need assistance you can
contact Customer Care 24 hours a
day, 7 days a week. you have two easy
ways to reach them: by email at
call toll-free at 1-866-282-8503.
4. Telecommunications Device (TDD)
If you have a hearing impairment
and need TDD assistance, please call
toll-free 1-800-231-4403.
WHEn You Call or loGIn, BE rEaDY To ProVIDE:
• your Employee ID number
• your date of birth
• your VISA, Discover, MasterCard or
American Express number with
expiration date or your Bill Me Later
and Electronic check Processing
information (registration is required),
if you are paying the prescription
co-payment.
Do You nEED anoTHErPrESCrIPTIon CarD?Additional prescription cards can be
obtained by calling Customer Care
toll-free at 1-866-282-8503.
• Effective January 1, 2010, CareFirst
BlueCross Blue Shield replaced
OneNet PPO as your new Preferred
Provider Organization (“PPO”).
Starting January 1, 2010, when you
use a provider (whether a hospital,
physician, or other health care
provider) who is in the CareFirst
PPO network, you will receive
discounted rates that are generally
lower than usual provider fees for
covered services.
TWO new ID cards
A new Medical ID card was sent to
you around the end of December.
you either received a white card or
a blue/green card, depending on your
geographic location. It is very important
that you show this new ID card to all
providers of care and tell them your
coverage has changed. This will ensure
your claim is filed on time, and to the
right place.
A separate Prescription ID card
was also sent to you directly from
Caremark. While your prescription
benefits are not changing, you will
now have two ID cards: one for
Prescription and one for Medical.
How do I find a CareFirst provider?
To find a participating provider, you
may call CareFirst at the number
shown on your ID card or go online
to the CareFirst website.
Blue-Green Card Holders:
Blue-green ID card holders should
call 1-800-235-5160. To find a
provider online:
• go to www.CareFirst.com
• Click on “Members and Visitors”
• Click on “Find a Doctor”
• Under “Search by Provider Type”
click on either “Medical (including
Primary Care, Specialists, and
Mental Health)” or “Facilities
(Hospitals, Labs, Urgent Care, x-ray,
Medical Supplies, etc.),” depending
upon your needs
Continued on page 7
7
Summary of Material Modifications (Continued from page 6)
• Under the header “Select your
Medical Plan,” click on “Select
Preferred Providers (PPO)”
White ID Card Holders:
White ID card holders should call
1-800-810-2583. To find a provider
online:
• go to www.CareFirst.com
• Click on “Members and Visitors”
• Click on “Find a Doctor”
• Under “Search by Provider Type”
click on either “Medical (including
Primary Care, Specialists, and
Mental Health)” or “Facilities
(Hospitals, Labs, Urgent Care, x-ray,
Medical Supplies, etc.),” depending
upon your needs
• Under the heading at the bottom
of the page which says, “Other
Networks,” click on the “PPO-
National/International Blue Cross
Blue Shield Directory” link.
• Effective January 1, 2010, Nationwide
Better Health (“Nationwide”)
replaced Optum/CARE Programs as
your new Utilization Management
(“UM”) provider. This is the provider
which certifies your inpatient hospital
stays and many outpatient procedures
as well.
Starting January 1, 2010, you must
contact Nationwide to pre-certify
ALL non-emergency or elective hos-
pital stays and within 24 hours after
an emergency admission, as well as to
certify all in- or out-patient mental
health or substance abuse treatment.
To pre-certify, call Nationwide Better
Health at (800) 925-8573.
• Effective January 1, 2010, (Michelle’s
Law). The following language is added
at the end of the section entitled
“Student Coverage” in your SPD:
If a dependent child enrolled in
Student Coverage ceases to be a full-
time student at an accredited school
because of a medically necessary
leave of absence resulting from a
serious injury or illness, coverage
under this Plan will be extended to
the dependent during his or her leave
of absence until the earlier of:
3. the one-year anniversary of the
date on which the dependent child’s
leave of absence began, or
4. the date on which the dependent
child’s coverage under the Plan would
otherwise terminate in accordance
with this section.
To be eligible for this extended
coverage, you must provide the Plan
with written certification from the
dependent child’s treating physician
that his or her leave of absence from
school is medically necessary and is as
a result of a serious illness or injury.
The extended coverage will not be
provided until the date such certifica-
tion is received by the Fund, but will
be retroactive to the date on which
his/her leave of absence began.
• Effective September 1, 2009, when
you enroll your newborn for medical
coverage, you must complete an
enrollment form and send it along
with the birth certificate to the Fund
office. The Fund office must have
a Social Security Number (“SSN”)
on record for you and your eligible
dependents to continue coverage.
Failure to provide us with the SSN
will result in suspension of benefits.
As of September 1, 2009, newborns
will have coverage from date of birth
through six (6) months of age without
a SSN. If a SSN has not been
received by the end of the 6th
month, coverage will terminate the
first of the 7th month.
• Effective July 1, 2009, you can either
have your long-term prescriptions
(maintenance drugs) filled at a CVS
Pharmacy or through CVS Caremark
Mail Service Pharmacy. you are now
allowed a maximum of four 30-day
fills of long-term prescriptions at any
retail pharmacy before you must get
a 90-day supply of a prescription filled
by a local CVS Pharmacy or by CVS
Caremark Mail Service Pharmacy.
Having the opportunity to get a 90-day
supply offers you significant savings.
Choose what works best for you!
Whether you choose to have your
prescription filled at a CVS Pharmacy
or with CVS Caremark Mail Service,
you pay the same co-pay.
Convenience with CVS Pharmacy
• Pick-up your long-term medicine
directly from the pharmacy at a
time that is convenient for you.
• Enjoy same-day prescription
availability.
• Talk face-to-face with a pharmacist.
Convenience with CVS Caremark
Mail Service
• Enjoy convenient home delivery.
• Receive medicine in confidential,
tamper-resistant and (when
necessary) temperature-controlled
packaging.
• Talk to a pharmacist by phone.
Learn more at www.caremark.com
• Access medicine and health
information.
• Investigate other cost savings
opportunities.
• Learn more about your
prescription benefit plan.
If you have questions, call CVS
Caremark’s Customer Care toll-free
at 1-866-282-8503.
oPEraTInG EnGInEErSunIon loCal no. 77PEnSIon FunDNo changes
oPEraTInG EnGInEErSunIon loCal no. 77InDIVIDual aCCounTFunDNo changes.
OPERATINGENGINEERSLOCALNO. 77 FUNDS
911 Ridgebrook Road
Sparks, MD 21152-9451
1ST CLASS PRSRT
U.S. POSTAGE
paid
PERMIT NO. 1608
BALTIMORE, MD
Help Your Claims Be Paid Quickly
Below are some reminders which
will help ensure your claims are
processed quickly and correctly.
• Respond immediately to the Fund
office when you get something in
the mail.
If the Fund office sends you an
inquiry in connection with a claim,
the sooner you respond, the sooner
your claim can be processed. If the
Fund office does not receive the
information from you, your claim
may be denied.
• Send your Explanation of
Benefits (“EOB”).
If the Fund is your secondary
medical coverage, please send your
Explanation of Benefits (“EOB”) from
the primary carrier as soon as possible.
The EOB will show how the primary
carrier processed the claim and will
allow us to properly process your
claim as the secondary insurer.
• Provide details of any accident.
If you or your dependent is involved
in an accident, be sure to provide
the Fund office with the details.
Remember, not all accidents are car
accidents. An accident could be a
bad fall or a severe cut to the hand.
• Send your Coordination
of Benefits Information
The Fund office may ask you to
send us a copy of your other benefits
information so we can coordinate
benefits with any other insurance
carrier you may have.
• New group coverage for
you or a family member?
If you or your dependent(s) are
offered, elect to enroll in, or lose
coverage under another group
health plan, please notify the Fund
office immediately.
• Change in dependent status?
If you have a change in dependent
status, be sure to file a new enrollment
form with the Fund office within 30
days. Also, remember to keep updated
your life insurance beneficiary.
• Keep your address updated.
Very important—tell the Fund office
every time you have a change in
address (even if temporary), name,
home/cell phone number, or
dependent status (which could be
due to marriage, divorce, adoption,
birth, etc.).
8
