Amendment No. 5
To
The Consolidated Edison
Retiree Health Program
For Management Employees
-------------------------
Dated: November 14, 1997
166214
Pursuant to resolutions adopted by the Board of Trustees of Consolidated
Edison Company of New York, Inc. at meetings duly called and held on November
24, 1992 and January 27, 1997 and to provisions in The Consolidated Edison
Retiree Health Program for Management Employees authorizing changes to the
retiree health benefits, the undersigned hereby approves the amendments set
forth below to The Consolidated Edison Retiree Health Program for Management
Employees, as heretofore amended by Amendments Nos. 1, 2, 3 and 4 thereto:
1. Effective February 1, 1997, a new Section 1.03 shall be added to read
as follows:
"Section 1.03 Transfers to Affiliates. Effective February 1, 1997, The
Program is amended to provide that Employees of the Company who are transferred
to and become employees of an Affiliate of the Company shall continue to be
eligible for retiree health benefits provided under the Program. The cost of
such Employees' retiree health benefits shall be allocated between the Company
and the Affiliate."
2. Effective February 1, 1997, Section 2.01 is amended by adding the following
definition at the end thereof:
"Affiliate means (a) any corporation which is a member of the same
controlled group of corporations (within the meaning of Section 414(b) of the
Code) as the Company, (b) any other trade or business (whether or not
incorporated) which is under common control with the Company within the meaning
of Section 414(c) of the Code, and (c) any organization which (along with the
Company) is a member of an affiliated service group (within the meaning of
Section 414(m) of the Code)."
3. Effective February 1, 1997, the definition of the following terms in Section
2.01 is amended to read as follows:
"Company means Consolidated Edison Company of New York, Inc., provided
that for any individual who is an Employee by reason of having transferred from
employment by Consolidated Edison Company of New York, Inc. to employment by an
Affiliate, any reference to `Company' shall include the Affiliate for purposes
of determining eligibility for benefits under the Management Plan.
"Employee means (a) any individual employed on the management payroll of
the Company and (b) any individual employed on the management payroll of the
Company who is transferred to the employment of an Affiliate."
4. Effective April 1, 1997, in Appendix I, Benefits, I. Hospital/Medical
Benefits (a) in the paragraph entitled Annual Deductibles-MEDICAL, the
individual annual deductible increases from $200 to $250, and the annual
deductible for families with four or more
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members increases from $600 to $750, and (b) the paragraph entitled Medical
Expense Copayments is changed to read as follows:
"After the individual annual deductible is met, 20% for expenses to $7,500
per person per year. None for expenses over $7,500 per person per year."
5. Effective April 1, 1997, as set forth in Section 5.01(b), the family annual
deductible increases from $25 to $50.
6. Effective January 1, 1998, the following sentences shall be added at the end
of Section 3.02(b):
"Each retired Employee or Surviving Spouse who first becomes eligible for
prescription drug benefits on or after January 1, 1998 shall be required to
enroll in the Retiree Health Program to obtain such benefits. The enrollment
procedure shall be similar to the enrollment procedure for medical/hospital
benefits set forth in Section 3.02(a) above. For those retired Employees and
Spouses who have other continuous group coverage for prescription drug benefits,
enrollment may be deferred on terms similar to those set forth in Section
3.01(b) above relating to medical/hospital benefits."
7. Effective January 1, 1998, Section 5.01(b) is amended to read as follows:
"Effective January 1, 1998, a contribution in the amount of $10 shall be
deducted each month from the pension or annuity payment to a retired Employee or
Surviving Spouse who enrolls or has prescription drug coverage. The monthly
contribution will cover the retired Employee or Surviving Spouse and any family
members covered for prescription drug benefits. An annual deductible of $50 per
family is required to be met before any prescription drugs may be obtained under
the prescription card program, and participants are required tomake a copayment
for each prescription or refill obtained under the prescription card program.
Effective July 1, 1996, the required copayment for basic coverage shall be $8.00
for brand name drugs and $5.00 for generic drugs."
8. Effective January 1, 1998, in paragraph I. under the heading Benefits
Hospital in Appendix I, I. Hospital/Medical Benefits, relating to the inpatient
treatment of alcoholism and substance abuse, delete the words ", but not more
than 60 days in a lifetime" in the two places the words appear. The lifetime
maximum of 60 days for the treatment of alcoholism or drug abuse shall no longer
apply.
9. Effective January 1, 1998, in paragraph B under the heading Benefits Medical,
in Appendix I, I. Hospital/Medical Benefits, delete the following words:
"Outpatient
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treatment of mental, psychoneurotic and personality disorders
(subject to a $1,500 annual maximum per person provided, however that a minimum
reimbursement of $30 a visit will apply)", and add a new paragraph E to read as
follows:
"Effective January 1, 1998, payment of 80% of reasonable and customary
charges, subject to deductible, of up to $70 for each outpatient visit in a
calendar year for treatment of mental, psychoneurotic or personality disorders,
and payment, subject to deductible, of $60 per visit for three crisis
intervention visits in a calendar year."
IN WITNESS WHEREOF, the undersigned has executed this instrument this ____
day of November, 1997.
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Richard P. Cowie
Vice President-Employee Relations
Consolidated Edison Company
of New York, Inc.
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