Can retirees’ health benefits be terminated or changed if their former employer is affected by a pandemic?
When employers do offer retiree health benefits, federal law generally does not prevent them from cutting or eliminating those benefits - unless they have made a specific legally binding promise to maintain the benefits. The key to understanding retiree health benefits lies in the documents governing the specific plan. Retirees can obtain a copy of the Summary Plan Description (SPD) to determine the nature of their employer’s obligation. The SPD is available from the plan administrator. Note: As an overall matter, employers should be guided in their relationship with their employees not only by federal employment law, but by their own employee handbooks, manuals, and contracts (including bargaining agreements), and by any applicable state or local laws. Not all of the employment laws referenced apply to all employers or all employees, particularly state and local government agencies. For information on whether a particular employer or employee is covered by a law, please use the links provided for more detailed information. This information is not intended for federal agencies or federal employees -- they should contact the U.S. Office of Personnel Management (OPM) for guidance.
Last Reviewed: 10/02/2009
Related Questions:
- If a worksite closes due to illness, how does an employee locate the plan administrator, or file a claim for benefits or obtain other documents, such as certificates of prior coverage or replacement identification documents?
- Are employees still covered by the employer’s health plan if their worksite closes as a result of an influenza pandemic outbreak?
- May an employer access employees’ medical information already in its possession for the purpose of pre-pandemic planning?
- May an employer require its employees to wear personal protective equipment (e.g., face masks, gloves, or gowns) designed to reduce the transmission of a pandemic virus?
- May employers ask employees if they have children or other family members for whom they may need to take care of in the event of a pandemic (for example, if schools were closed)? May they be asked if they have someone else who can take care of these family members? May this information be shared with supervisors and managers?
