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| 2007 News Releases and Information |
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DEERE EXPANDS COMMUNICATION EFFORTS TO ASSIST RETIREES
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MOLINE, Illinois (October 31, 2007) — Deere & Company retirees affected by changes in health care benefits are receiving additional resources to ensure they have accurate information to help in their decision-making, the company announced today.
In September, Deere announced changes in its health care benefits program for approximately 5,000 people who formerly worked in salaried positions and retired after July 1, 1993. The company said the changes provide strong John Deere financial support but require active involvement by those who are covered by these benefits.
"Retirees have told us they would appreciate hearing more from Deere in this transition to clarify what they believe to be erroneous information they have been told by others," said Mert Hornbuckle, Vice President of Human Resources at Deere & Company.
Hornbuckle said those who are affected by the changes are receiving two additional mailings this week to enhance the information already provided, including a DVD of frequently-asked questions at recent informational meetings. In addition, Deere has placed full-page ads in newspapers serving communities with large populations of eligible Deere retirees and has added information to a website serving eligible retirees.
"It's important for eligible retirees and their dependents to make decisions on their health care benefits for the upcoming year," said Hornbuckle. "These additional information resources will be helpful in making decisions that are best for their individual circumstances."
While Deere has said that the changes deliver comparable value in health care benefits, company representatives have been clear that retirees will need to be more actively involved in the decision-making process – a change from the past when John Deere retirees could re-enroll without taking any action. Deere said the new program is based more on individual needs rather than providing a blanket approach.
"It is very important that retirees who are covered by this program get accurate information on which to base their decisions and it is essential that they move ahead and take action," Hornbuckle said.
"Many people have completed or have made appointments with specialists provided by Deere to answer questions. We have learned from some of these individuals that once they had enough information, the program changes did not seem overwhelming and, in fact, many people learned that they may experience lower total costs for their healthcare."
The program changes are made possible by federal legislation that created tax-advantaged Health Savings Accounts and by the adoption of the Medicare Modernization Act of 2003. There is a change; however, in how health-care coverage is purchased coupled with more active involvement by the retirees.
For Medicare-eligible retirees, Deere will provide retiree medical credits and retirees are encouraged to use the funds to purchase a Medicare Advantage plan and a prescription drug plan through private insurers. In addition, Deere has contracted with an outside service to provide support to retirees in making their personal plan selections.
Retirees who are not yet eligible for Medicare will choose one of the two health plan options that current salaried employees moved to in January of this year. These plans allow out-of-pocket medical expenses to be paid with tax-free dollars, involve retirees and employees more in health care decisions, and leverage tax-advantaged Health Savings Accounts that can be used for current or future health care expenses.
Deere said retirees can refer to their mailings and access the website created for this program at: http://www.deere.com/healthydirections/retireehealthcare/.
Deere said less than 5,000 of the company's 28,000 retirees will be part of this change. The company has various segments of retirees based on whether an employee worked in a wage or salaried position and also on when the individual retired. Those affected by today’s announcement are in a group of salaried employees most of whom retired or will retire on or after July 1, 1993.
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