U.S. Ruling Backs Benefit Cut at 65 in Retiree Plans

by CycleDog | December 27, 2007 at 07:51 am

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Our present government is hell-bent on disassembling the New Deal, not because it's unpopular or that it doesn't work, but because it costs less to get rid of it. Make no mistake - this is an administration that values the bottom line above all else. American workers and their families are increasingly disposable in our globalized economy. But yanking the rug out from under retirees by eliminating medical benefits may have an unintended consequence. Those older workers who need the benefits will simply keep working, effectively retiring in place and preventing companies from hiring younger, less costly employees.

U.S. Ruling Backs Benefit Cut at 65 in Retiree Plans

By ROBERT PEAR

Published: December 27, 2007

WASHINGTON — The Equal Employment Opportunity Commission said Wednesday that employers could reduce or eliminate health benefits for retirees when they turn 65 and become eligible for Medicare.

The policy, set forth in a new regulation, allows employers to establish two classes of retirees, with more comprehensive benefits for those under 65 and more limited benefits — or none at all — for those older.

More than 10 million retirees rely on employer-sponsored health plans as a primary source of coverage or as a supplement to Medicare, and Naomi C. Earp, the commission’s chairwoman, said, “This rule will help employers continue to voluntarily provide and maintain these critically important health benefits.”