Retiree Health Insurance

HGHAHR

My organization has a policy stating that it will pay the same amount toward health insurance for qualified retirees that it contributes toward FT active EE's. Right now, retirees must have 10 years of service prior to retirement. Management wants to put in an executive clause that allows us to pay retiree health insurance after 5 years for execs. However, they want to stipulate that the retiree must be at least 55 at the time s/he retires. Is this legal????

Hunter1

First of all: Do you have any openings?? Retiree health insurance for employees who have only worked for the organization for five years?

Anyway, yes, I believe you can legally set a minimum age to qualify for retirement benefits. Other benefit plans such as pension plans set a minimum age also.

MrCreosote

We just got our FAS 106 back and we were clobbered again this year. The money we have to set aside for retiree coverage doubled last year and went up 50% this year. I am surprised that you might increase participation. We're looking for a way to decrease it, or at least the cost.

SMace

Sounds like you have some execs that want to retire at 55 but don't have ten years in. They will be doing a disservice to your organization in the future. Retiree health benefits are killing organizations. My dad retires at age 57. If he did not have retiree health coverage, he couldn't have done it. I plan to work until medicare kicks in or I win the lottery, which ever comes first.