COMMUNICATION:  Employee Buy Out

IF APPLYING FROM OUTSIDE CUNA MUTUAL USE:  BuyOut@cunamutual.com

IF APPLYING FROM INSIDE CUNA MUTUAL USE:  MB-BuyOut@cunamutual.com

CUNA Mutual and OPEIU Local 39 have agreed to provide an opportunity for eligible employees to participate in a voluntary Employee Buy Out program.  Eligible employees are defined as employees who currently are receiving or will be eligible to receive longevity payments as of December 31, 2008. 

There are two voluntary termination payment options under the provisions of the Employee Buy Out program.

Option 1 – One week of pay for every full year of service, with a maximum eligibility of fifty-two weeks.  Payments will be made on a bi-weekly basis and Health Benefits and Life Insurance Benefits will be provided for the time period during which Buy Out payments are being received.  Please refer to the attached document for additional information related to Health Benefits and Life Insurance Benefits.

Option 2 – One week and one day of pay for every full year of service, with a maximum eligibility of fifty-two weeks.  Payment will be made in a lump sum and no benefits will be provided.

Buy Out payments under both Option 1 and Option 2 are considered supplemental earnings for tax withholding purposes, resulting in federal income tax withholding at 25% plus state income tax and FICA.

Employees who terminate under the Buy Out program may be eligible to receive a CSSP payment and a Longevity payment.  Please refer to the attached document for additional information.

If an employees who terminates under the Buy Out program would reach Magic 85 during the period of time that Buy Out payments are being made, the employee can be bridge to Magic 85.    The eligible employee must be able to reach, or exceed, the Magic 85 date by adding the weeks of eligible Buy Out payments to the last possible termination date in the termination window.

There will be three selection windows during which an eligible employee may request a voluntary termination with a Buy Out payment.  Each selection window has a corresponding window during which a termination date will be scheduled.

            Selection Window                                                      Termination Window

             April 28, 2008 – June 7, 2008                                     June 9, 2008 – August 15, 2008

 July 28, 2008 – August 23, 2008                                October 20, 2008 – December 20, 2008

 November 3, 2008 – December 6, 2008                   January 4, 2009 – March 31, 2009

Eligible employees will have the opportunity to self nominate during each Selection Window.  Eligible employees interested in participating in the Buy Out program will need to self nominate to the Union by sending an email to MB-BuyOut.    This is the only way to self nominate for a Buy Out.  This mailbox will begin accepting requests at 8:00 a.m. on Monday April , 2008.   Any requests received prior to that date and time will not be accepted.  Employee nominations will be taken by the Union in the order in which the emails are received as time-stamped in MB-BuyOut. 

Self nomination emails should include your 1st and 2nd choice with the following information:              

            1^st selection window and corresponding termination window                Desired termination date

            2^nd selection window and corresponding termination window                Desired termination date

There is no guarantee that all interested employees will have the opportunity to participate in the Buy Out program or in the termination window of their choice.  The Company reserves the right to limit the number of nominations to 75 employees per window and 165 employees in total.  The Company may choose to allow participation above either limit.   

The Union will compile a list of names of employees who have self-nominated in first-come first- served order .  As the Company receives the list of names from the Union, eligible employees who have self nominated for participation will receive an Intent to Terminate – Employee Buy Out form from the Company.  This form will need to be signed and returned to the Company within three working days to complete the self nomination process.  The Intent to Terminate –Employee Buy Out decision will become irrevocable after five working days from the date the form is signed. 

Once the self-nomination process is complete, participating employees will receive a termination date from their manager as soon as it is practicable.  There is no guarantee that participating employees will be able to terminate on their desired termination date, however, the Company will try to accommodate employee needs, where feasible, while reserving the right to determine the date if no accommodation can be made.  Employees terminating their employment under this Buy Out program will be required to sign a waiver and release prior to receipt of any Buy Out payments under this program.

You may have questions as you are considering your options under the Buy Out program.  The attached document provides additional information related to specific benefits as well as directions to on-line sites for additional personalized benefit information.  If you still have questions after utilizing these resources, you may email your questions to MB-Questions On BuyOut.  This special mailbox will be monitored by benefit professionals several times each day.  They will respond to your questions either in writing or by return call.  Please submityour questions as quickly as possible following receipt of the Intent to Terminate – Employee Buy Out form to ensure enough time for a response that allows you to make a final decision.  If you specifically want to speak with someone directly, please indicate that request in your email and you will receive a return call as soon as possible to address your questions. 

Additional Information

Health Benefits:  If an eligible employee who provides a waiver and release has group medical, dental and/or vision coverage in effect at the time the eligible employee terminates employment with CUNA Mutual, CUNA Mutual will continue, for the period of time for which Buy Out pay is payable under Option 1, the medical, dental and/or vision coverage that the eligible employee had in place at the time his or her employment terminated, subject to the eligible employee paying the premium for such coverage to the same extent as is required of similarly-situated, actively employed employees.  The amount of the required contribution will change as the amount required of similarly-situated, actively employed employees changes.  In the event that at some point during the Buy Out period, the medical, dental or vision coverage that the eligible employee had in place at the time of termination is no longer available to employees, the eligible employee will be offered coverage which is the same as or substantially similar to the coverage then being offered to similarly-situated, actively employed employees, at a cost equal to the cost required of similarly-situated, actively employed employees. 

Life Insurance:  For an eligible employee who provides a waiver and release, CUNA Mutual will continue, subject to the terms, conditions and provisions of the applicable plans, the eligible employee’s life insurance coverage which was in place at the time of the eligible employee’s termination of employment for the period of time for which Buy Out pay is payable under Option 1.  As a condition to this continued coverage, an eligible employee must make such premium contributions as are required to be made from time to time by similarly-situated, actively employed employees.  The coverages which continue under this provision, subject to an eligible employee’s paying the applicable premium, include basic life insurance, optional Group Term Life Insurance, Spouse/Dependent Term Life Insurance and Voluntary Accidental Death and Dismemberment Insurance.  When this extended coverage period terminates, the eligible employee will have such continuation or conversion rights as may be provided by law or CUNA Mutual’s plan(s).

CSSP:  A prorated CSSP payment based on the employee’s earnings for the period of time they worked, shall be paid to employees participating in this Buy Out program, subject to the following conditions:

• The employee has worked for at least six months in the calendar year;
• The employee does not voluntarily quit prior to the scheduled termination date; and
• The employee is not terminated for performance or misconduct.

CSSP payments under these provisions will be paid in one lump sum on or before March 31 of the year following the calendar year on which the CSSP payment is based.

Longevity Payment:  Employees eligible to receive a Longevity payment whose Longevity anniversary falls within the timeframe of the selected termination window will be paid a Longevity payment on the Employee’s anniversary date, regardless of the date the employee’s work assignment ends.

Retirement Benefits:  If you have questions or need information about retirement benefits to help you consider your options under the Buy Out program, the following resources are available to you from the Life and Career page on the Intranet.

• 401(k) Plan:
  • To view balances, loan payoff amounts, and quarterly statements:
    • Click on “401(k) Information and Loans” under My Benefits
    • Sign in with your normal ID and password, Click on “I Want To”
  • To view description of plan provisions or obtain Summary Plan Description:
    • Click on “Employee Handbook” under AskHR
    • Sign in with your normal ID and password, Click on “401(k) Plan”

• Pension Plan:
  • To view balances, calculate projection of your benefit at various dates, including Magic 85:
    • Click on “Pension Plan” under My Benefits
    • Sign in with your normal ID and password
    • Note:  The interest rate used for lump sum calculations changes every calendar year.  Lump sum payments are made on the first of each month.  Therefore, any projection for a lump sum payable after December 1, 2008 could be different at the time of final calculation.  The interest rate does not impact monthly benefit amounts.
  • To view description of plan provisions and obtain Summary Plan Description:
    • Click on :”Employee Handbook” under AskHR
    • Sign in with your normal ID and password, Click on “Pension Plan”

• Retiree Medical:
  • To view your Retiree HRA (Health Reimbursement Account) balance:
    • Click on “Pension Plan” under My Benefits
    • Sign in with your normal ID and password
    • Note:  If you were age 50 or older with 10 or more years of service on September 1, 2005, you will not see an HRA balance because you were grandfathered into the prior plan.  Please refer to the next bullet.
  • To view descriptions of plan provisions, including the grandfathered retiree medical plan, and to see premiums and retiree medical plan options:
    • Click on “Employee Handbook” under AskHR
    • Sign in with your normal ID and password
    • Open twisty for “Benefits”, then “Retirement” then click on “Retiree Health”

• Impact on Other Benefits and Retirement Checklist:
  • Click on “Employee Handbook” under AskHR
  • Sign in with your normal ID and password
  • Open twisty for “Leaving the Company”, then click on “I’m Thinking about Retirement”
  • Also click on “Impact on Other Benefits” to get additional information

Bridging to Magic 85:  If an eligible employee who provides CUNA Mutual with a waiver and release can reach his or her Magic 85 date during the period of time for which Buy Out pay is payable under Option 1, CUNA Mutual will place the eligible employee on paid leave of absence for such period of time (leave period) as may be necessary for the eligible employee to reach his or her Magic 85 date.  The sole purpose of the leave period is to enable the eligible employee to attain his or her Magic 85 date.  The eligible employee will not be required to (and shall not) perform any labor or service for CUNA Mutual during the leave period.

During the leave period segment of the Buy Out payment period, in addition to other specific benefits under the Buy Out program, the eligible employee will also continue to participate in CUNA Mutual’s retirement plans for represented employees and will also continue to accrue vacation, sick leave and personal leave.  Other than those benefits as have been previously described, the eligible employee will not participate in any other CUNA Mutual benefit plans.

Once the eligible employee has attained his or her Magic 85 date, the eligible employee will be taken off paid leave status and his or her employment will be officially terminated; however, the eligible employee will continue to be eligible for the benefits associated specifically with the Buy Out program for the balance of the time period during which Buy Out payments are received. 

In the event the employee’s scheduled termination date is prior to the termination date on which the eligible employee could otherwise attain his or her Magic 85 date during the period in which Buy Out payments are received, the eligible employee will be required to utilize paid time off to cover the time between the end of the Buy Out payments and the date on which the eligible employee attains his or her Magic 85 date. If it is necessary to utilize paid time off, eligible employees will be required to utilize vacation first, followed by personal leave, if necessary and then sick leave.  If an eligible employee falls short of attaining his or her Magic 85 date after utilization of all available paid time off, such employee will not be bridged to Magic 85.

·         Example of Bridging:  An eligible employee with 24 ½ years of continuous service would become eligible for Magic 85 twenty weeks after her employment would terminate in the absence of the special bridging feature.  If the eligible employee self nominates for a Buy Out and selects Option 1 (bi-weekly payments), the first twenty weeks of the period during which Buy Out payments are made will be treated as a leave period.  At the end of the leave period, the eligible employee would have four weeks of Buy Out payments remaining. 

·         Example of Bridging using paid time off balance:  An eligible employee self nominates for the June – August termination window knowing that a termination date of August 4 in addition to the duration of Buy Out payments would bridge the eligible employee to his Magic 85 eligibility.  The employee’s termination date is determined to be July 18, leaving the employee two weeks short of reaching his Magic 85 eligibility.  The employee has 5 days of vacation available, 2 days of personal leave available and 115 days of sick leave available.  To reach his Magic 85 eligibility, the employee would be required to use the 5 available days of vacation, the 2 available days of personal leave and three days of sick leave to reach the eligibility date.

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Contract Ratified

Out of 763 eligible members, 553 members (72%) cast their vote. 

382 members (69%) voted to Accept the Agreement

171 members (31%) voted to Not Accept the Agreement

Thanks to all who took time to vote!