|
E-mail this page to a friend!
Retirement News
Government Wants to Allow Companies to End Health
Insurance for Retirees at 65
AARP asks - will they next reinstate mandatory
retirement
 Feb. 28, 2007 - If the government gets its way,
companies will be allowed to terminate health care benefits for retirees
that have reached age 65, because they qualify for Medicare. The AARP is
challenging this proposed rule by the Equal Employment Opportunity
Commission in a court of appeals, saying this is age discrimination.
EEOC Defends Rule To Limit,
Eliminate Some Retirement Benefits
The
Equal Employment
Opportunity Commission before the 3rd U.S. Circuit Court of
Appeals on Tuesday argued that businesses should be allowed to limit or
terminate health care benefits for retirees ages 65 and older because
they qualify for Medicare, Dow Jones reports (Brickley, Dow Jones,
2/27).
| |
Related Stories |
|
| |
Airline Pilots Will Be Allowed to Fly Until 65 if
FAA Retirement Rule is Approved
Airline Pilots Against Age Discrimination winning
fight to raise retirement from 60
January 30, 2007 - Those who think there is no age discrimination in
America might take a look at the battle that has been raging over the
possibility of allowing airline pilots to fly after they reach age 60.
Today, after a fight that has lasted over 40 years, the Federal Aviation
Administration said it will propose to raise the mandatory retirement
age for U.S. commercial pilots from 60 to 65. It was a giant victory for
a small group of pilots that have been opposed even by their own union.
Read more...
Read more
on
Retirement |
|
U.S. District Judge Anita Brody in September 2005
reversed her previous ruling and said EEOC has the right to enact a rule
allowing employers to reduce or eliminate health benefits for retirees
once they become eligible for Medicare, while retaining health benefits
for younger retirees.
The EEOC rule was scheduled to take effect in April
2005, but it was blocked by Brody's original decision.
AARP in
February 2005 filed a lawsuit to block the rule, saying EEOC had
exceeded its authority. AARP cited a 2000 decision by the 3rd U.S.
Circuit Court of Appeals that different benefits packages for younger
and older retirees would violate U.S. antidiscrimination laws. Brody in
March 2005 blocked the rule, and EEOC asked the
Department of
Justice to appeal the decision (Kaiser
Daily Health Policy Report, 9/29/05).
AARP said current law allows employers to offer
less costly Medicare benefits rather than full coverage to their
retirees.
AARP attorney Christopher Mackaronis said,
"Employers get a free pass on Medicare."
Laurie McCann of the
AARP Foundation
said, "Employers are not being asked to provide benefits that Medicare
already provides," adding, "What's next? Will they reinstate mandatory
retirement? If they win this, they essentially get carte blanche." DOJ
attorney Anthony Yang, who argued for EEOC, said that the retirement
benefit age cutoff does not contradict antidiscrimination law.
The court will issue a written decision on the case
(Dow Jones, 2/27).
Click to More Senior News on the
Front Page
Copyright: SeniorJournal.com |
