Pension/Health Benefits

[Dee Jay Dee]

What is the name of your state? Name of the state is NC

The problem is pension trust fund says today if you retire yesterday, your retiree insurance will cost you $50 and if you retire today you pay $100 and it increases by $50/mo next year and each year after that. I would like to know if any law/ERISA/or employee Benefit Protection Rights requires a grace period or at least 10 days notice before this could be effective? How could anyone retire yesterday if they were not advised of the change until today?

 

[Beth3]

"I would like to know if any law/ERISA/or employee Benefit Protection Rights requires a grace period or at least 10 days notice before this could be effective?" Not that I'm aware of but you may contact the federal Department of Labor in Washington D.C. and inquire.

"How could anyone retire yesterday if they were not advised of the change until today?" Because people can retire whenever they choose.

With the costs of providing group health benefits increasing exponentially every year, especially for retirees, what you describe is not uncommon. Many employers have having to either (a) drop health coverage for retirees altogether; (b) increase the premium costs to all retirees; or (c) structure a "two tier" premium cost arangement for retirees, grandfathering employees who retired before a certain date.

 

[Dee Jay Dee]

Yes, I am aware a person can retire whenever they choose. I was considering retiring next August, 2004 as i would have another year of service on that date. What the problem is had I know the retirement rules and insurance premiums were going to change, I would have already retired! There was no notice of the changes being effective yesterday and announced today. Is there no protection for stuff like this or no recourse. Wouldn't you think the changes could not be effective prior to the announcement. Is there no adverse action notification required by a company? It means I would receive $140 more a month in income, but have to pay $150 more in an insurance premium monthly and have the co-payments of medicine, doctor visits, and major medical double by not knowing (as it was not public knowledge) to retire prior to the announcement of the changes. I would think all benefit changes would be announced if you retire after 12/31/03 the increases and changes take place in January and not in the middle of August. No one was given the opportunity to retire before the cut off date.

 

[Beth3]

I understand what you're saying but it's possible the employer didn't make the decision until shortly before they announced it. In any event, the decision not being perceived as fair or not being handled in the manner you would prefer doesn't make it illegal.