EEOC ensures retiree health benefits

WASHINGTON, Dec. 27 (UPI) -- The U.S. Equal Employment Opportunity Commission ruled employers may cut healthcare benefits for retirees eligible for Medicare.

The EEOC released a ruling Thursday that exempts employer healthcare benefits from the requirements of the Age and Discrimination in Employment Act, which mandates equal benefits for all regardless of age.

The result of the decision is that employers may cut healthcare benefits to older retirees who may be eligible for state or federal healthcare assistance without violating the Age Discrimination and Employment Act.

"By this action, the EEOC seeks to preserve and protect employer-provided retiree health benefits, which are increasingly less available and less generous," EEOC Chairwoman Naomi Earp said.

The EEOC action was in response to a federal appellate decision that held the act mandates equitable health benefits for 55 and older retirees and younger retirees.

Labor unions embraced the decision as the alternative would open the door for employers to eliminate healthcare benefits entirely.