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Last updated on
10/28/2008 You are visitor number 
Retiree links of interest
Retiree corner:
Sadly, General Motors has become the latest American company
to eliminate health benefits for its retirees over the age of 65. This is just
the
first major casualty of the federal Equal Employment Opportunity Commission's (EEOC)
decision earlier this year to allow companies to
discriminate against older retirees by treating them differently than younger
retirees. GM has set a precedent that will likely lead to other
employers doing the same.
In recent years, as a cost-cutting measure, some corporations have resorted to
canceling or reducing retiree healthcare coverage. These are
benefits that were earned by employees and were considered part of their total
compensation package.
In the 1950's - 1980's these benefits were "Inducements," in lieu of higher
wages. Continued health benefits in retirement were a strong
incentive for many to stay with their employer for decades of loyal service. The
current inference that corporate retirement benefits are
entitlements or gifts is just wrong. They are benefits earned over careers
spanning 30-40 years. Corporations benefited greatly by providing
them in lieu of higher wages.
Two bills now in Congress, the bi-partisan Emergency Retiree Health Benefits
Protection Act (H.R. 1322), and the Pension Protection Act ERISA
Amendments of 2008 (H.R. 6143), would address this issue and make companies live
up to the financial commitments made to their employees and
retirees decades ago. According to the bills, changes to health benefits would
need to be made before an employee retires.
The financial reality of providing healthcare coverage is considered in both
bills. They ensure that employers are not burdened with a cost they
cannot afford or that does financial harm to the company. Companies may apply
for an exemption if they feel compliance would be a substantial
hardship. Most importantly, both bills ensure that employers meet their
obligations to their long-time employees who earned those benefits through
years of dedicated service.
Support from Members of Congress is critical to retirees in this state and
across the country, especially in light of the EEOC ruling that allows
companies to cut supplemental health coverage to retirees age 65 and over.
Healthcare coverage is a vital issue for all Americans. It is imperative that
before the Democratic and Republican conventions both presidential
candidates and Congress address these issues -- now of crisis proportion -- and
put into their platform a true plan of action for the protection of
retirees' earned healthcare benefits.
To those holding or seeking office in 2008, I encourage you not to take the
retiree/senior vote for granted. They represented 62.5 percent of
those who voted in the last election.
Please feel free to copy and send to your representative in congress
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