In 2022, GC Huckabee was selected as a Plan Administrator for the MRL Retiree Healthcare Trust.  In the ensuing year or two, the Trustees and Administrator noticed that the Plan was in a dramatic overfunded status.  As such, continuing to collect monthly premiums from the parties, especially the retirees on fixed incomes, was viewed by the Union Trustees and Plan Administrator as unnecessary. 

Furthermore, we felt that the robust overfunding of the plan would allow it to remain solvent while also improving plan coverage and eligibility.  Upon BNSF’s takeover of the Plan in 2023, discussions ensued to make Plan changes according to these observations.  Those discussions culminated in some very robust Plan design changes that were implemented via a letter of agreement which went into effect on January 1 of 2026.  The highlights of the significant plan changes are as follows:

1) Max lifetime benefit increased from $425K to $600K

2) Eligibility age for coverage reduced from 60 to 58 years of age

3) $0 monthly contribution for participants effective 1/1/26 and continuing.

4) Reimbursement from BNSF to plan participants for all monthly contributions paid in previous 21 months (approx. $5250 for most)

The suspension of monthly contributions applies to both the Carrier and the Plan participant and will remain in effect as long as funding level is maintained at or above 110% expected post-retirement benefit obligations (EPBO).  Based on the current status of the Trust, we expect the premium suspension to remain for the indefinite future.