Cuts in Retiree Health Coverage at Whirlpool: Another Scary Story for Baby Boomers Nearing Retirement
I mentioned a few weeks ago my concern about the trend of companies to cut retiree health coverage, forcing retirees to pay a higher portion of the costs or drastically slashing the coverage. Now another example:
Maytag has been a big employer in Iowa. They were bought in 2005 by Whirlpool and the new company wants to cut retiree health benefits. In fact, Whirlpool is suing to be allowed to change (read “cut”) the retiree health plan. This article is particularly disturbing because it involves a union. I had always thought that having a union meant that unless the union bargained away your benefits they could not be changed. Don’t count on it. Here is what former United Auto Workers Local 997 President Ted Johnson said:
“It was negotiated in 2004 that the benefits would be in place for life, but I guess that’s the way corporate America now treats people,” said Johnson, who was president of the Maytag local from 2005 through last year.”
So what are your plans if your employer cuts or eliminates your health coverage after you retire? Can you afford to pay for the coverage? Do you have any alternatives? Something to keep you up at night, isn’t it?