Union Overview: Recognized as one of the most active District Councils in the International Union of Painters and Allied Trades, this KTP client’s member’s donate time and financial resources to charities in the Delaware Valley, Northeast, Central Pennsylvania and Southern New Jersey. IUPAT District Council 21 represtents over 4,500 members in the finishing trades. The union is headquartered in Philadelphia, PA.
Plan Design Summary: Prior to the new plan design and structure, the union maintained a Self Funded Retiree Drug Subsidy plan. KTP created Retiree Benefit Solutions© that meet the union’s goals of:
- Reducing the union’s liability and lowering cash expenses
- Curtailing the risks of the existing self-funded retiree medical program
- Maintaining the same, if not better benefits for the union’s retiree population
- Minimizing the impact on the retiree population
Results: KTP was able to move the union to a fully-insured EGWP model that eliminated all the financial exposures of the self-funded plan (healthcare cost trends, catastrophic losses, etc.) and greatly reduced the financial burden on the union, while improving retiree benefits.
KTP created a detailed financial analysis illustrating the likely impacts of various plan changes on the client’s retiree finances. Under the new plan design, the union saved the trust fund $319,150 or 24.4% and the drug plan is saving an additional $1,072,046 or 41.9% for a total savings of $1,391,196 or 36%.
Union Group Quotes:
The following is a quote from Michael Previtera, Fund Administrator:
“KTP Advisors assisted IUPAT District Council 21 in moving our Medicare eligible retirees from self-funded medical and prescription drug plans to fully insured medical and drug plans. The new Medicare supplement plan is saving the trust fund $319,150 or 24.4% and the drug plan is saving an additional $1,072,046 or 41.9% for a total savings of $1,391,196 or 36.0%.
KTP Advisors personnel were very knowledgeable and worked together with our current advisor during the evaluation process. They were able to implement the new plan on an extremely tight time table and were always responsive. I feel very comfortable recommending them to help other plans achieve significant savings.”
The following are quote is from the fund Office Manager, Robyn Simpson:
“My main concern is that our service team is to be responsive to the needs of our retirees. I was a bit nervous about making a change to a new provider and how it might impact our retirees. However, I was impressed by KTP Advisors’ proactive approach to managing our questions or concerns during and after implementation. KTP Advisors continues to be approachable, responsive and timely with any requests from our team. I am confident this level of client service is the standard at KTP Advisors and would highly recommend their services.”