As a result of the UAW-Ford Legal Services Plan provided under the Collective Bargaining Agreement, eligible Ford employees have imputed income* for tax purposes which, in certain circumstances, causes increased tax liability (e.g. a wife and husband are both Ford employers or an eligible Ford employee or retiree is also a surviving spouse of a former Ford employee or retiree). When this happens, the system shows two imputed income amounts, even though the parties are receiving no additional coverage.

In the 1999 round of negotiations, this problem was remedied. If the above stated circumstances exist, one eligible participant of the plan may now declare coverage for both eligible parties for tax purposes. This will result in both eligible parties still enjoying the same level of legal service coverage and only one member will have imputed income. To obtain this benefit, certain conditions must be met as described below:

Notice of dual coverage from the tax paying party must be received no later than Monday, December 18, 2000.

All deletions (and reinstatements) are effective January 1" of the following year.

To delete or reinstate coverage, call 1-8001521-7818. ext. 517. When you phone, please indicate that you are calling regarding dual plan coverage. You must have both eligible employees' names, social security numbers, locations of employment and local union numbers available at the time of the call. If you have previously notified Legal Services of your wishes, there is no need for further action in this regard.

If you have any questions concerning this matter, please contact Jeff Hartzel at 3 131872-8260. Thank you in advance for your effort.

Fraternally,

Ron Gettelfinger

Vice President and Director UAW National Ford Department

* Imputed income is an amount shown in your gross income as value for the provided benefit, even though you do not actually receive the money.

Officers and Regional Directors Ford Servicing Representatives