The Whole Benefits Package
Some union supporters focus solely on differences in healthcare plans as they attempt to convince Union Pacific dispatchers to give up their management status. But as pointed out in other articles, employees fare considerably better under the management benefit package in many significant health-related scenarios. It is just as important to remember that healthcare is only one aspect of the benefits dispatchers currently enjoy as management employees. Dispatchers’ current benefits also include retirement benefits funded by UP, disability insurance, life insurance, and more generous vacation allotments. These benefits differ significantly from those found in other ATDA negotiated agreements, so keep them in mind if someone asks you to look only at healthcare plans.
Here are some comparisons:
Retirement
| UP Dispatchers | ATDA-Represented Dispatchers |
|---|---|
Hired Prior to January 1, 2018 |
|
| Railroad Retirement Benefits | |
| Participation in Union Pacific funded Pension Plan | |
UPC 401(k) Thrift Plan
|
|
| If an employee over age 55 and with at least 10 years of service dies, the UP Pension Plan has an automatic single life annuity survivor benefit for his/her spouse (of at least one year) of 50% of the employee’s single life annuity benefit. | |
Hired On or After January 1, 2018 |
|
| Railroad Retirement Benefits | |
Comprehensive UPC 401(k) Thrift Plan
|
Salary Continuation
| Short-Term Disability & RRB Sickness Benefits | |
|---|---|
| UP Dispatchers | ATDA-Represented Dispatchers |
| Coverage for up to six months ranging from 100% of monthly salary at the outset to no less than 75% of monthly salary, based on years of service. STD benefit percentages shown include RRB sickness benefits. | Generally receive a limited number of sick leave days per year ranging from 5 to 20 days depending on length of service followed by RRB sickness benefits. |
| Long-Term Disability & RRB Disability Benefits | |
| UP Dispatchers | ATDA-Represented Dispatchers |
| Core benefits (no cost to employee) pays at 50% of monthly salary; employee can opt for additional coverage equal to 62% of total compensation (salary + bonus). LTD benefit percentages shown include any RRB disability benefits. Generally, benefit paid until employee retires, returns to work or reaches age 65. | RRB disability benefits only (if meet qualification requirements). |
Insurance
| Healthcare and Savings | |
|---|---|
| UP Dispatchers | ATDA-Represented Dispatchers |
| Choice of HDHP plans or PPO with varying premium costs based on plan and coverage level (single or family). Kaiser HMO option also available in California. | Premium costs are the same for single plans and family plans. |
| Employees electing one of two High Deductible Healthcare Plans can open a tax-preferred Health Savings Account (HSA). | Flexible Spending Accounts (FSA) available. |
| UP contributes to employee’s HSA $2,100 for family coverage and $900 for single coverage. Employees also eligible for cash wellness incentives up to $600. | FSA completely employee-funded; railroads pick up administrative costs. |
| Employees in 2023 can contribute $5,650 tax free for family coverage and $2,950 for single coverage. Additional $1,000 can be contributed for employee who is over age 55 and employee’s spouse who is over age 55. Unused funds roll over from year to year. | Employee money in FSA does not roll over into the next benefit year if unused. |
| Accidental Death and Dismemberment | |
| UP Dispatchers | ATDA-Represented Dispatchers |
| 1x annual base salary up to $50,000, at no cost to employee. | $16,000 at no cost to employee. |
| Option to increase benefit 1x to 8x annual base salary at additional employee cost. | |
| Life Insurance | |
| UP Dispatchers | ATDA-Represented Dispatchers |
| 1x annual base salary, up to $50,000, at no cost to employee. | $20,000 at no cost to employee. |
| Option to increase benefit 1x to 8x annual base salary at additional employee cost. | |
| Option to add spouse life (up to the lesser of $500,000 or 50% of employee’s total coverage) and child life (up to $10,000) at additional employee cost. | |
Vacation
| UP Dispatchers | ATDA-Represented Dispatchers* | ||
|---|---|---|---|
| Years of Service | Vacation | Years of Service | Vacation |
| Year of Hire | 3 weeks prorated | Year of Hire | Not eligible |
| 1 year | 3 weeks | 1 year | 2 weeks |
| 5 years | 3 weeks | 8 years | 3 weeks |
| 7 years | 3.4 weeks | ||
| 10 years | 4 weeks | 17 years | 4 weeks |
| 15 years | 4.4 weeks | ||
| 20 years | 5 weeks | 25 years | 5 weeks |
*Note: the ATDA National Vacation Agreement has been amended on several railroads in consideration of work rule concessions negotiated by the ATDA.
Retiree Medical
$3,000 Employee
$3,000 per person Family (maximum of $6,000 for Family)
| Plan Features | UP Dispatchers | ATDA-Represented Dispatchers | |
|---|---|---|---|
| UHC or BCBS HDHP | Negotiated Plan for Agreement Employees | ||
| Eligibility for Plan Benefits (Hired prior to 1/1/2004 for nonagreement) | Age 55 to 60 (with 10 years of service) | Yes | No |
| Age 60 to 65 (with 10 to 29 years of service) | Yes | No | |
| Age 60 to 65 (with 30 years of service) | Yes | Yes | |
| Age 65 or older | No | No | |
| Additional Plan Feature | HSA option (if eligibility requirements met) | Yes | No |
Premiums
| Under Age 65 | $447 Employee $1,003 Family | No |
Age 65+ | No Coverage Available | No Coverage Available | |
| Out of Pocket Expenses (deductible and coinsurance amounts applicable to medical care and prescription drug benefits) | Annual Deductible | $3,000 Employee $3,000 per person Family (maximum of $6,000 for Family) | $3,000 |
| Coinsurance (amount paid by plan after annual deductible is met for services from in-network physicians in compliance with care coordination requirements) | 85% | 80% | |
| Maximum Annual Out-of-Pocket Expense, Including Deductible and Coinsurance (for services from in-network physicians in compliance with care coordination requirements) | $5,000 Employee $5,000 per person Family (maximum of $10,000 for Family) | No Limit | |
| Comparison of Selected Plan Benefits | Prescription Drug Benefit | Yes | Yes |
| Major Medical Care | Yes | Yes | |
| Preventative Care | Yes (covered at 100%) | No | |
| Access to vision discounts | Yes | No | |
$2,000,000 | |||
| Maximum Lifetime Benefit | Applies to medical benefits only | $188,000 | |
*Visit the Benefits/WR Web page and click on Nonagreement Benefits for details on eligibility, covered services and exclusions. Note: These nonagreement benefits are subject to change at any time. The Company has and will continue to retain the right to modify or terminate any nonagreement benefits.
** See the Railroad Employees National Early Retirement Major Medical Benefit Plan (GA-46000) for details on covered services and exclusions. All benefits are subject to negotiation. There is no guarantee that this benefit plan would apply to Union Pacific dispatchers if the ATDA is elected.