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Change in Retirement Benefits

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linettes

Junior Member
What is the name of your state? Utah
I have been employed for over 23 years. In our Policy and Procedure it states that we can earn Health Coverage after Retirement. You must have enough sick leave built up to meet the equation in order to do so. At this point, I have earned 10 years of Insurance when I retire. A Memo was just given to employees stating that there is now a cap of 5 years on Health Insurance after Retirement, which means I have lost 5 years of hard earned Health Insurance. This doesn't affect many employees, because they have not worked towards this goal. I understand that from this point I can no longer earn more, but my question is - Can they take away something they have promised and that you have worked towards and earned?
Also, a fellow employee was told by one of our administrators that this change was coming and he hurried and retired in order to get his 9 years of Health Insurance. Several other employees, along with myself, asked the administrators if they were changing our retirement benefits. We were told that there were going to be some changes and they would let us know beforehand. Is that discrimination? Thanks
 


Beth3

Senior Member
No, this is not any form of discrimination. Your employer is free to change their policy on retiree health benefits if they wish to. It's a lousy deal that one employee was given the inside scoop but it wasn't illegal.

FYI, many employers are discontinuing offering health insurance to retirees entirely. It's become cost-prohibitive.
 

cbg

I'm a Northern Girl
Barring a bona fide, enforceable contract that specifically grants you this benefit, the employer is free to change their benefits as business needs require.
 

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