Major Medical Benefit Increases

Dec. 1, 2010

The lifetime maximum benefit for the Railroad
Employees National Early Retirement Major Medical Benefit (also known as
ERMA or GA-46000) Plan will increase from $118,900 to $126,200 on January
1, 2011.

At the end of 2001, Labor and Management agreed on various procedures to
administer the annual changes in the amount of the lifetime maximum
benefit under the ERMA plan. In conjunction with the formula established
in 2001, a new lifetime maximum was calculated for 2011 by utilizing the
October 2010 consumer price index (CPI) data for Hospital and Related
Services and Physician Services.

Additionally, for individuals who have reached the lifetime maximum, the
incremental maximum available is applied to eligible expenses submitted
for dates of service on or after the effective date of the new maximum.
For 2011, this amount will be $7,300.

This change will apply to all railroads and crafts participating in ERMA.