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Supreme Court Repudiates Case Law on Retiree Health Care -- What Should Employers Do?
Warner Norcross & Judd LLPLink to more items from this source
Mar. 24, 2015

"Employers wishing to modify healthcare benefits for existing retirees would be wise ... to negotiate with the retiree group -- with or without the involvement of the union.... Some large employers have sought to make changes through non-opt out class action litigation and a settlement in response to the action which binds all affected parties.... Another strategy is to approach retirees with an offer to establish and contribute to a VEBA ... designed to provide funds for the increasing costs to retirees or to entirely fund retiree benefits after a certain date. This entity can also be governed entirely by elected retirees, giving the retirees a direct stake in prudently managing health benefit strategies and controlling costs to assure the longest feasible continuation of retiree benefits."

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