As previously announced, the NSF has renewed the five year Cooperative Agreement with UCAR to operate the National Center for Atmospheric Center through September 30, 2008. Renewal of this agreement is good news to UCAR employees and retirees. The NSF plays an important role in supporting benefits provided to employees and retirees.

UCAR’s Employee Medical Plan provides important benefits to eligible retirees. Retirees have access to a medical insurance that may not be available elsewhere, and the cost of the insurance is partially paid by UCAR. Currently, UCAR subsidizes the cost of retiree insurance, relying on NSF and other funding agencies to fund this subsidy. Should UCAR lose NSF funding, the cost of medical coverage to retirees would be raised to meet the full cost of insurance.

With the renewal of the cooperative agreement, it is expected that the current level of subsidy to retirees will continue until September 30, 2008. UCAR has modified the Medical Plan to bring it into agreement with the cooperative agreement. The subsidy to retirees will continue through the end of the cooperative agreement and will cease on September 30, 2008, unless UCAR takes positive action to extend the subsidy. As with all financial decisions, such action is contingent on the availability of funding and business conditions at that time.

This modification does not change any employee’s or retiree’s eligibility under the plan. Current and future retirees may obtain coverage under the plan beyond the end of the cooperative agreement; however, the cost of coverage will be determined by the plan provisions in effect at that time.

UCAR reserves the right to amend or terminate this plan or any other retirement benefit at any time.

The respective Summary Plan Descriptions have been updated to reflect this change:

CIGNA Dental Plan
CIGNA HMO Plan
CIGNA PPO Plan
Kaiser Permanente HMO Plan

August 2003