On behalf of the Local 793 trustees, officers and executive board, we’re pleased to announce that we are moving to a self-administration model for our Pension, Life & Health Benefits and Pre-Paid Legal Services starting January 1, 2020.

As of that date, all plan administration services currently provided by Global Benefits will be managed by a separate administration company, established by the union solely for that purpose.

“The trustees, officers and executive board of Local 793 are always looking for ways to improve services and better the lives of our members and their families,” said Local 793 business manager Mike Gallagher. “This will allow us to better serve both active members and retirees.”

Why we’re making this change

In June 2017, a Benefits Administration Sub-Committee (BAC) was established to conduct a detailed review of the services provided by Global Benefits and report back to the trustees.

Based on the review, the BAC concluded that moving to self-administration offers many advantages for our plan members, including:

  • Full control over all aspects of plan administration;
  • Better and faster member service, including online submission of health and dental claims;
  • Ability to invest in up-to-date technology and practices; and
  • Potential for significant long-term cost savings.

“There is a potential for significant cost-savings to the union by self-administering the Pension, Life & Health Benefits and Legal Services plans,” noted Gallagher. “It will also enable us to keep pace with technological advances and speed up the reimbursement process by enabling members to go online to submit medical or dental claims – something members have demanded.”

Next steps

To help ensure a smooth transition, the trustees will be engaging a consultant to advise on implementing the new structure – including setting up the administration company, hiring a chief executive officer and staff for the company, and developing an administration system to integrate with the union’s current member reporting database.

The existing arrangement with Global Benefits will continue until the January 1, 2020 transition date. We’ll provide more details on the change process and implications on member claims processes in upcoming editions of 793 Operator.

“This is definitely a step in the right direction for our union and our members,” added Gallagher. “By self-administering the plans, we will be able to save the union money, keep pace with technological advances and better serve our members.”