Common use of Retiree Health Clause in Contracts

Retiree Health. Employees retiring, who have been employed for fifteen 21 (15) years by the Board and who are either at least fifty-five (55) years of age or qualify 22 for a disability pension, shall be allowed to continue in the health plan of his/her choice 23 on a self-paid basis. 25 If the employees described above have seventy percent (70%) or more of the maximum 26 allowable full-day accumulation of sick leave, they shall be allowed to continue in the 27 comprehensive indemnity/PPO plan or one (1) of the HMO plans with the Board paying 28 the full premium at the rate in existence for the comprehensive indemnity/PPO plan at 29 the time of retirement. 31 Those employees retiring at the end of their regularly scheduled work year shall be 32 allowed to continue in the comprehensive indemnity/PPO plan or one (1) of the HMO 33 plans with the Board paying the full premium at the rate in existence for the 34 comprehensive indemnity/PPO plan on either June 30 or July 1, whichever is higher, 35 provided such employee has submitted his/her written resignation on or before April 1. 37 All half-day balances will be converted into full-day equivalents in making the seventy 38 percent (70%) determination. In the event of the death of such retired employee, the 39 spouse of such employee, at the time of retirement, shall be allowed to continue in a 1 single plan of his/her choice with the Board paying the full premium at the single rate 2 for the comprehensive indemnity/PPO plan in existence at the time of the deceased 3 retiree's retirement. If such retired employee did not have the required accumulation of 4 sick leave, at the death of the employee, the spouse shall be allowed to continue in a 5 single plan of his/her choice on a self-paid basis. Such surviving spouses shall not be 6 eligible for Board-paid coverage if otherwise covered because he/she remarries or is 7 employed and is covered by another group health insurance plan or HMO. 9 Those employees who retire prior to age sixty-five (65) shall have their health plan 10 premiums paid to the extent that such premiums do not exceed the amount of the group 11 rate paid for the employee enrolled in the comprehensive indemnity/PPO plan at the 12 time of retirement. When the retiree attains age sixty-five (65), he/she shall receive the 13 Medicare Carveout Plan paid by the Board and Medicare "B" paid to the employee by 14 the Board provided that such total payment shall not exceed the total amount paid for 15 the group coverage for the comprehensive indemnity/PPO plan at the time of 16 retirement. 18 Those employees who retire after the attainment of age sixty-five (65) shall have their 19 full health plan premium paid and Medicare "B" paid to the employee by the Board to 20 the extent that such payment does not exceed the amount of the group rate for the 21 comprehensive indemnity/PPO plan at the time of such retirement. 23 In unusual circumstances, adjustments to the seventy percent (70%) requirement may be 24 recommended by the superintendent. 26 Retired employees/spouses who elected not to enroll in social security and who, 27 therefore, are not eligible for Medicare "A" coverage shall be provided with 28 hospitalization coverage and Medicare "B" coordination coverage under the 29 comprehensive indemnity/PPO plan with access to any provider and with medical 30 benefits provided on an out-of-network basis in accordance with modifications 1-6

Retiree Health. Buyer will assume the liability, obligation, and responsibility with respect to providing post-retirement health and life insurance benefits in accordance with this Section 7.9(d)(ii)(D), Section 7.9(a), and Schedule 5.12(g) (“Post-Retirement Welfare Benefits”) to (i) the persons listed on Schedule 7.9(d)(ii)(D) and any Business Employee who retires between the date hereof and the Closing Date (such listed persons and Business Employees, the “Current Retirees”) and their spouses and eligible dependents, and (ii) the Business Employees retiringwho have, who have been employed as of the Closing Date, satisfied the age and service eligibility requirements for fifteen 21 Post-Retirement Welfare Benefits under the applicable Seller plans (15the “Grandfathered Active Employees” and, together with the Current Retirees, the “Grandfathered Individuals”) years by and their spouses and eligible dependents. The Grandfathered Individuals as of the Board date hereof are listed on Schedule 7.9(d)(ii)(D). Effective on the Closing Date and who are either for a period continuing at least fiftythrough the last day of the calendar year that follows the calendar year in which the Closing Date occurs (the “Benefit Continuation Period”), Buyer will provide to the Current Retirees Post-five Retirement Welfare Benefits that are comparable in the aggregate to those Post-Retirement Welfare Benefits provided to such Current Retirees immediately prior to the Closing Date, at a premium rate that is at least as favorable as the premium rate in effect for and available to the Current Retirees immediately prior to the Closing Date (55subject to cost increases in accordance with Seller’s past practice), provided that Buyer will provide a premium reduction credit to each Current Retiree (and surviving spouse of any Current Retiree) years equal to the premium reduction credit accrued by such Current Retiree as of age or qualify 22 the Closing Date under the Seller’s Post-Retirement Welfare Benefit plans, if any. Buyer will provide to the Grandfathered Active Employees, for a disability pension, shall be allowed to continue in the health plan of his/her choice 23 on a self-paid basis. 25 If the employees described above have seventy percent (70%) or more of the maximum 26 allowable full-day accumulation of sick leave, they shall be allowed to continue in the 27 comprehensive indemnity/PPO plan or one (1) of the HMO plans with the Board paying 28 the full premium at the rate in existence for the comprehensive indemnity/PPO plan at 29 the time of retirement. 31 Those employees retiring at the end of their regularly scheduled work year shall be 32 allowed to continue in the comprehensive indemnity/PPO plan or one (1) of the HMO 33 plans with the Board paying the full premium at the rate in existence for the 34 comprehensive indemnity/PPO plan on either June 30 or July 1, whichever is higher, 35 provided such employee has submitted his/her written resignation on or before April 1. 37 All half-day balances will be converted into full-day equivalents in making the seventy 38 percent (70%) determination. In the event of the death of such retired employee, the 39 spouse of such employee, period commencing at the time of retirement, shall be allowed to continue in a 1 single plan of his/her choice with such Grandfathered Active Employee retires and continuing at least through the Board paying the full premium at the single rate 2 for the comprehensive indemnity/PPO plan in existence at the time last day of the deceased 3 retiree's retirement. If Benefit Continuation Period, Post-Retirement Welfare Benefits that are comparable in the aggregate to those Post-Retirement Welfare Benefits that would have been available to such MINNESOTA GAS Grandfathered Active Employees immediately prior to the Closing Date(if such employees had retired employee did not have immediately prior to the required accumulation of 4 sick leaveClosing Date), at a premium rate that is at least as favorable as the death of premium rate in effect for and available to the employee, the spouse shall be allowed to continue in a 5 single plan of his/her choice on a self-paid basis. Such surviving spouses shall not be 6 eligible for Board-paid coverage if otherwise covered because he/she remarries or is 7 employed and is covered by another group health insurance plan or HMO. 9 Those employees who retire Grandfathered Active Employees immediately prior to age sixty-five the Closing Date (65) shall have their health plan 10 premiums paid subject to the extent that such premiums do not exceed the amount of the group 11 rate paid for the employee enrolled in the comprehensive indemnity/PPO plan at the 12 time of retirement. When the retiree attains age sixty-five (65), he/she shall receive the 13 Medicare Carveout Plan paid by the Board and Medicare "B" paid to the employee by 14 the Board provided that such total payment shall not exceed the total amount paid for 15 the group coverage for the comprehensive indemnity/PPO plan at the time of 16 retirement. 18 Those employees who retire after the attainment of age sixty-five (65) shall have their 19 full health plan premium paid and Medicare "B" paid to the employee by the Board to 20 the extent that such payment does not exceed the amount of the group rate for the 21 comprehensive indemnity/PPO plan at the time of such retirement. 23 In unusual circumstances, adjustments to the seventy percent (70%) requirement may be 24 recommended by the superintendent. 26 Retired employees/spouses who elected not to enroll in social security and who, 27 therefore, are not eligible for Medicare "A" coverage shall be provided with 28 hospitalization coverage and Medicare "B" coordination coverage under the 29 comprehensive indemnity/PPO plan with access to any provider and with medical 30 benefits provided on an out-of-network basis cost increases in accordance with modifications 1Seller’s past practice); provided that Buyer will provide a premium reduction credit to each Grandfathered Active Employee (and surviving spouse) equal to the premium reduction credit accrued by such Grandfathered Active Employee as of the Closing Date under the Seller’s Post-6Retirement Welfare Benefits plans, if any. For the avoidance of doubt, any Grandfathered Active Employee who earns 1,000 hours of service with Seller in the calendar year in which the Closing occurs will be given credit for a year of service for the calendar year during which the Closing occurs for purposes of Seller’s Post-Retirement Welfare Benefits. Following the Benefit Continuation Period, Buyer may exercise any rights that Seller would have had to modify the post-retirement health and life insurance plans applicable to Grandfathered Individuals, all other Transferred Employees, and the spouses and eligible dependents of all the above; provided that (i) Buyer will not eliminate Post-Retirement Welfare Benefits for a period of five years from the Closing Date, (ii) Buyer will honor any premium reduction credit in full for any Grandfathered Individual, and (iii) the Current Retirees, Grandfathered Individuals, or other Transferred Employees, or their spouses and eligible dependents, shall not, as the result of any such modification, be treated less favorably than are treated similarly situated non-union retirees of Buyer (and the spouses and eligible dependents of any such retirees) who retire during 2005 (or, if later, the Grandfathered Individual’s or Transferred Employee’s actual retirement date).

Retiree Health. Employees retiring, who have been employed for fifteen 21 (15) years by the Board and who are either at least fifty-five (55) years of age or qualify 22 for a disability pension, shall be allowed to continue in the health plan of his/her choice 23 on a self-paid basis. 25 If the employees described above have seventy percent (70%) or more of the maximum 26 allowable full-day accumulation of sick leave, they shall be allowed to continue in the 27 comprehensive indemnity/PPO plan or one (1) Buyer will assume the liability, obligation, and responsibility with respect to providing post-retirement health and life insurance benefits in accordance with this Section 7.9(d)(ii)(D), Section 7.9(a), and Schedule 5.12(g) (“Post-Retirement Welfare Benefits”) to (i) the persons listed on Schedule 7.9(d)(ii)(D)(1) and any Business Employee who retires between the date hereof and the Closing Date (such listed persons and Business Employees, the “Current Retirees”) and their spouses and eligible dependents, and (ii) the Business Employees who have, as of the HMO Closing Date, satisfied the age and service eligibility requirements for Post-Retirement Welfare Benefits under the applicable Seller plans (the “Grandfathered Active Employees” and, together with the Board paying 28 Current Retirees, the full “Grandfathered Individuals”) and their spouses and eligible dependents. The Grandfathered Individuals as of the date hereof are listed on Schedule 7.9(d)(ii)(D)(1). Effective on the Closing Date and for a period continuing at least through the last day of the calendar year that follows the calendar year in which the Closing Date occurs (the “Benefit Continuation Period”), Buyer will provide to the Current Retirees Post-Retirement Welfare Benefits that are comparable in the aggregate to those Post-Retirement Welfare Benefits provided to such Current Retirees immediately prior to the Closing Date, at a premium rate that is at least as favorable as the premium rate in existence effect for and available to the comprehensive indemnity/PPO plan at 29 Current Retirees immediately prior to the time Closing Date (subject to cost increases in accordance with Seller’s past practice), provided that Buyer will provide a premium reduction credit to each Current Retiree (and surviving spouse of retirement. 31 Those employees retiring at any Current Retiree) equal to the end of their regularly scheduled work year shall be 32 allowed to continue in the comprehensive indemnity/PPO plan or one (1) premium reduction credit accrued by such Current Retiree as of the HMO 33 plans with Closing Date under the Board paying Seller’s Post-Retirement Welfare Benefit plans, if any. Buyer will provide to the full premium at the rate in existence Grandfathered Active Employees, for the 34 comprehensive indemnity/PPO plan on either June 30 or July 1, whichever is higher, 35 provided such employee has submitted his/her written resignation on or before April 1. 37 All half-day balances will be converted into full-day equivalents in making the seventy 38 percent (70%) determination. In the event of the death of such retired employee, the 39 spouse of such employee, a period commencing at the time of retirement, shall be allowed to continue in a 1 single plan of his/her choice with such Grandfathered Active Employee retires and continuing at least through the Board paying the full premium at the single rate 2 for the comprehensive indemnity/PPO plan in existence at the time last day of the deceased 3 retiree's retirement. If Benefit Continuation Period, Post-Retirement Welfare Benefits that are comparable in the aggregate to those Post-Retirement Welfare Benefits that would have been available to such Grandfathered Active Employees immediately prior to the Closing Date (if such employees had retired employee did not have immediately prior to the required accumulation of 4 sick leaveClosing Date), at a premium rate that is at least as favorable as the death of premium rate in effect for and available to the employee, the spouse shall be allowed to continue in a 5 single plan of his/her choice on a self-paid basis. Such surviving spouses shall not be 6 eligible for Board-paid coverage if otherwise covered because he/she remarries or is 7 employed and is covered by another group health insurance plan or HMO. 9 Those employees who retire Grandfathered Active Employees immediately prior to age sixty-five the Closing Date (65) shall have their health plan 10 premiums paid subject to the extent that such premiums do not exceed the amount of the group 11 rate paid for the employee enrolled in the comprehensive indemnity/PPO plan at the 12 time of retirement. When the retiree attains age sixty-five (65), he/she shall receive the 13 Medicare Carveout Plan paid by the Board and Medicare "B" paid to the employee by 14 the Board provided that such total payment shall not exceed the total amount paid for 15 the group coverage for the comprehensive indemnity/PPO plan at the time of 16 retirement. 18 Those employees who retire after the attainment of age sixty-five (65) shall have their 19 full health plan premium paid and Medicare "B" paid to the employee by the Board to 20 the extent that such payment does not exceed the amount of the group rate for the 21 comprehensive indemnity/PPO plan at the time of such retirement. 23 In unusual circumstances, adjustments to the seventy percent (70%) requirement may be 24 recommended by the superintendent. 26 Retired employees/spouses who elected not to enroll in social security and who, 27 therefore, are not eligible for Medicare "A" coverage shall be provided with 28 hospitalization coverage and Medicare "B" coordination coverage under the 29 comprehensive indemnity/PPO plan with access to any provider and with medical 30 benefits provided on an out-of-network basis cost increases in accordance with modifications 1Seller’s past practice); provided that Buyer will provide a premium reduction credit to each Grandfathered Active Employee (and surviving spouse) equal to the premium reduction credit accrued by such Grandfathered Active Employee as of the Closing Date under the Seller’s Post-6Retirement Welfare Benefits plans, if any. For the avoidance of doubt, any Grandfathered Active Employee who earns 1,000 hours of service with Seller in the calendar year in which the Closing occurs will be given credit for a year of service for the calendar year during which the Closing occurs for purposes of Seller’s Post-Retirement Welfare Benefits. Following the STLD01-1185616-10 MICHIGAN GAS Benefit Continuation Period, Buyer may exercise any rights that Seller would have had to modify the post-retirement health and life insurance plans applicable to Grandfathered Individuals, all other Transferred Employees, and the spouses and eligible dependents of all the above; provided that (i) Buyer will not eliminate Post-Retirement Welfare Benefits for a period of five years from the Closing Date, (ii) Buyer will honor any premium reduction credit in full for any Grandfathered Individual, and (iii) the Current Retirees, Grandfathered Individuals, or other Transferred Employees, or their spouses and eligible dependents, shall not, as the result of any such modification, be treated less favorably than are treated similarly situated non-union retirees of Buyer (and the spouses and eligible dependents of any such retirees) who retire during 2005 (or, if later, the Grandfathered Individual’s or Transferred Employee’s actual retirement date).

Retiree Health. Employees retiring, who have been employed for fifteen 21 (15) 15 years 27 by the Board and who are either at least fifty-five (55) 55 years of age or qualify 22 for a disability 28 pension, shall be allowed to continue in the health plan of his/her their choice 23 on a self-paid 29 basis. 25 31 If the employees described above have seventy 70 percent (70%) or more of the maximum 26 allowable 32 full-day accumulation of sick leave, they shall be allowed to continue in the 27 comprehensive indemnity/PPO 33 indemnity health plan or one (1) of the HMO plans HMO/EPO plan with the Board paying 28 its share of the full 34 premium at the rate in existence for the comprehensive indemnity/PPO indemnity health plan at 29 the time of 35 retirement. 31 37 Board-paid contribution is the Board contribution in effect at time of retirement for the 38 PPO indemnity health plan. 1 Those employees retiring at the end of their regularly scheduled work year shall be 32 2 allowed to continue in the comprehensive indemnity/PPO indemnity health plan or one (1) of the HMO 33 plans HMO/EPO plan with the 3 Board paying its share of the full premium at the rate in existence for the 34 comprehensive indemnity/PPO 4 indemnity health plan on either June 30 or July 1, whichever is higher, 35 provided such 5 employee has submitted his/her written resignation on or before April March 1. 37 7 All half-day balances will be converted into full-day equivalents in making the seventy 38 70 8 percent (70%) determination. In the event of the death of such retired employee, the 39 spouse of 9 such employee, at the time of retirement, shall be allowed to continue in a 1 single plan of 10 his/her choice with the Board paying its share of the full premium at the single rate 2 for 11 the comprehensive indemnity/PPO indemnity health plan in existence at the time of the deceased 3 retiree's 12 retirement. If such retired employee did not have the required accumulation of 4 sick 13 leave, at the death of the employee, the spouse shall be allowed to continue in a 5 single 14 health plan of his/her choice on a self-paid basis. Such surviving spouses spouse shall not be 6 15 eligible for Board-paid coverage if otherwise covered because he/she remarries or is 7 employed and 16 is covered by another group health insurance plan or HMO/EPO. 9 18 Those employees who retire prior to age sixty-five (65) 65 shall have their health plan 10 premiums paid 19 to the extent that such premiums do not exceed the amount of the Board's portion of the 20 group 11 rate paid for the employee enrolled in the comprehensive indemnity/PPO indemnity health plan (as 21 applicable) at the 12 time of retirement. When the retiree attains age sixty-five (65), he/she shall 22 receive the 13 Medicare Carveout Plan with the premium paid by the Board and the 23 Medicare "B" premium paid to the employee by 14 the Board Board, provided that such total 24 payment shall not exceed the total amount paid for 15 the Board's portion of the premium 25 for group coverage for the comprehensive indemnity/PPO indemnity health plan (as applicable) at the time of 16 26 retirement. 18 28 Those employees who retire after the attainment of age sixty-five (65) 65 shall have their 19 full health plan 29 premium paid and Medicare "B" paid to the employee by the Board to 20 the extent that 30 such payment does not exceed the amount of the Board's portion of the group rate for 31 the 21 comprehensive indemnity/PPO indemnity health plan (as applicable) at the time of such retirement. 23 33 In unusual circumstances, adjustments to the seventy 70 percent (70%) requirement may be 24 34 recommended by the superintendent. 26 36 Retired employees/spouses who elected not to enroll in social security and who, 27 37 therefore, are not eligible for Medicare "A" coverage shall be provided with 28 38 hospitalization coverage and Medicare "B" coordination coverage under the 29 comprehensive indemnity/PPO 39 indemnity health plan (as applicable) with access to any provider and with medical 30 1 benefits provided on an out-of-network basis in accordance basis, subject to the following modifications: 1) 2 access to the National Program of Medical Excellence benefit and 2) access to in- 3 network and out-of-network retail and mail-order prescription drug benefits with modifications 1co- 4 pays not subject to the annual co-6insurance limit.