Employer Bulletin

State Agencies
Vol. 20, State B
May 28, 2003

Union Contracts Settled; Bulletin Clarifies Effective Dates and Earnings Offsets for Income Continuation Insurance for Represented and Non-Represented Employees

The Legislature and Governor have approved the State labor union contracts that went into effect May 18, 2003. Non-represented employee's salaries are to be adjusted at the same time.

These settlements and adjustments have an effect on Income Continuation Insurance (ICI) benefits paid and payable to certain ICI claimants under these contracts, and will require benefit adjustments and earnings offsets by CORE, INC., the ICI plan administrator. CORE will identify the employees requiring a benefit adjustment and contact employers to provide corrected salary information.

For ICI claimants whose claims are still open, any earnings they are paid on or after May 18, 2003 (check date on or after May 18, 2003) will have their ICI benefits offset at 75% of the earnings reported. This will include any lump sum payment(s) they receive per the administrative adjustment under the union contracts and the non-represented adjustment. This is done by check date, as the Group Insurance Board amended the State ICI plan to offset earnings from ICI benefits based on the check date – not the period covered. Employers must complete the ET-5901 (ICI Report of Employment and Earnings).

Employees disabled prior to the dates specified for each contract are not eligible for an ICI benefit adjustment. The issuance of the lump sum payment as a result of the delay in the contracts being settled is designated an administrative adjustment by the contracts, not a retroactive salary increase.

Please note that those ICI claimants under the ICI UW Faculty plan will have no benefit adjustment. Earnings will be offset at 75% based on check date.

Please direct question concerning ICI claims to CORE, INC., at 1-800-960-0052 or e-mail ICILTDI@COREINC.com.

WSEU, WEAC Contract Settlement and Non-Represented Changes – ICI Reporting

WSEU, WEAC and non-represented employee's salary increases were effective April 6, 2003. Those WSEU, WEAC and non-represented employees that CORE determines to be disabled on or after April 20, 2003 are eligible for the ICI benefit at the new salary rate. However, WSEU, WEAC, and non-represented employees whose disability has been established prior to April 20, 2003 are not eligible for an ICI benefit adjustment.

Any earnings paid to current ICI claimants will be offset at 75% of the earnings reported based on the check date through the ET-5901.

WPEC Contract Settlement – ICI Reporting

WPEC employee's salary increases were effective April 20, 2003. Those WPEC employees that CORE determines to be disabled on or after May 4, 2003 are eligible for the ICI benefit at the new salary rate. However, WPEC employees whose disability was established prior to May 4, 2003 are not eligible for an ICI benefit adjustment.

Any earnings paid to current ICI claimants will be offset at 75% of the earnings reported based on the check date through the ET-5901.