Under the terms of the National Agreement signed September 26, 1996, a second lump sum payment is to be paid to employees on July 1, 1998 based on compensation earned in 1997.

The formula used to determine the amount of the lump sum payment is outlined in Article I, Section 5 of the Agreement. This section also provides for cost sharing in the event of health care premium rate increases after 1995.

The amount to be deducted from each employee's lump sum to offset the increase in health care cost is $228.42. This amount was figured by multiplying by 12 months the difference of $50.76 per month between the 1995 and 1998 payment rates. The formula then calls for 25 percent of the total amount of $609.12, which is $152.28, to be multiplied by 1.5 percent. This gives you the cost sharing amount for each employee of $228.42.