
Supreme Court Says Employers Can Reduce
Retiree Benefits
After almost eight years of litigation, the U.S. Supreme Court has declined to review a federal appeals court ruling that
upheld employers' ability to reduce health care benefits after retirees become eligible for Medicare.
The decision means that the Equal Employment Opportunity Commission can continue to allow employers to exempt
retiree health care plan from the Age Discrimination in Employment Act when the plans reduce benefits for retirees once
they become eligible for Medicare.
The AARP had asked the Supreme Court to review the ruling that counteracted the Third Circuit ruling in 2005 that retiree
medical plans were subject to the Act.
Source: Workforce Management
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