PREMIUM RATE INCREASE EFFECTIVE JANUARY 2003 FOR THE DISABILITY INSURANCE (DI) PLAN The DI plan is a group insurance that provides income protection to employees who are represented in the collective bargaining process when they are unable to work for a lengthy period of time due to a totally disabling illness or injury. DI Premium Rate Increase Effective January 2003, plan members will note that the DI premium has increased from $1.08 to $1.61 per $1000 of adjusted annual salary. This increase is required because of a greater number of beneficiaries and general increases in costs. Premium cost-sharing arrangements will not change. Employees will pay 15% of the premium ($0.2415 per $1000 of adjusted insured salary) and the employer will contribute 85% ($1.3685). This is the first change in premium rate since 1993. Example An employee earning $46,315 a year would have an insured salary of $46,500. This represents the employee’s insured salary adjusted to the next highest multiple of $250. The monthly premium for DI coverage for 2003 will be calculated as follows:

$1.61 x $46,500 / $1000	=	$74.87
Employee pays		$11.23
Employer pays		$63.64
		______
Total		$74.87

Members with questions about their coverage should contact their departmental pay and benefits specialist.