April 23, 2004
We know that retiree health benefits are very important to you. We want to reassure you that the Equal Employment Opportunity Commission is acting to safeguard these benefits, not to eliminate them.
Yesterday, the Commission voted to approve a rule that would allow employers to coordinate the benefits they offer with other health benefits, like Medicare. If you receive retiree health benefits from your former employer, the odds are that they are already coordinated in this way.
A federal court's ruling under the age discrimination law threatened this practice and made it harder for employers to continue to provide retiree health benefits. Unions, teachers' organizations, state and local governments, and employers told us that the court's ruling would force them to cut back or eliminate their retiree health benefit programs. The Commission did not want this to happen. We acted so that you may continue to receive the health benefits you want and need.
When finalized, our rule will make clear that it is legal for employers to continue to provide you with the health benefits you currently receive. The rule will not require any cuts to your benefits. It will not encourage any employer who offers these benefits to change them in any way.
The Commission recognizes the importance of health benefits to retirees. Our vote yesterday was a vote to preserve these benefits.
Cari M. Dominguez
Chair
This page was last modified on April 23, 2004.