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(June 13,
2007)
Proudly representing retirees from the new
AT&T Midwest Region, SBC Midwest Region, Ameritech, as well as the
five Bell Companies in Illinois, Indiana, Michigan, Ohio, and
Wisconsin
National Retiree Legislative Network News Release - June 11, 2007
Retiree Leader Says Appeals Court's Decision
Marks Dark Day For America's Older Retirees
Third Circuit Court of Appeals Supports EEOC's Rule Allowing Employers
To Reduce Health Benefits For Retirees When They Go On Medicare
WASHINGTON (June 11, 2007) - The leader of the National Retirees
Legislative Network (NRLN) said Monday that the decision by a federal
appeals court allowing employers to reduce health benefits for
retirees when they become eligible for Medicare marks a dark day for
America's older citizens.
"It was indeed a dark day for older retirees when three judges on the
Third Circuit Court of Appeals decided that it is permissible for
companies to discriminate against their retirees because they have
become eligible for Medicare," said A. J. (Jim) Norby, NRLN president.
"Furthermore, retirees are being punished by the Equal Employment
Opportunity Commission (EEOC), the federal agency created to prevent
discrimination, including age discrimination."
The unanimous decision by the Philadelphia-based court ruled on June 4
that the EEOC has the legal authority to create a regulation that
would exempt employer coordination of retirement benefits with
Medicare benefits from the federal Age Discrimination in Employment
Act (ADEA). The EEOC had issued the early retiree health benefits
exemption regulation in 2004. The AARP had filed a lawsuit challenging
the EEOC's rule.
"The NRLN commends the AARP for its gallant fight for the rights of
older retirees through this case and we encourage the organization to
appeal the decision to the U.S. Supreme Court," Norby said. "We agree
with the AARP's position that this decision lets agencies disregard
the intent of Congress and blow a hole in the statute."
Norby maintains that Jane Restani, who wrote the opinion for the
appeals court, bought into a false premise that rather than
maintaining retiree benefits at pre-Medicate eligibility levels for
all retirees in order to avoid discrimination under ADEA, that
employers would choose to reduce all retiree health benefits to a
lower level.
"I say baloney to the EEOC's claim that allowing employers to pay more
for early retiree health benefits is a 'reasonable, necessary and
proper exercise of authority,'" Norby said. "It is outright age
discrimination against the older retirees who are less likely to be
able to afford the cost of healthcare insurance to supplement
Medicare."
Based in Washington, D.C.,
the NRLN is dedicated to securing federal legislation that will
guarantee the fair and equitable treatment of retirees in the private
and public sector. The NRLN represents a non-partisan, grass roots
coalition of retiree associations with a combined membership of some
two million men and women who are seeking to protect their pension and
healthcare benefits. For more information, visit the NRLN Web site at
http://www.nrln.org.
We will make every effort to inform the
membership as this issue, which affects us all, develops.
For the Good News, United Healthcare and Advocate Hospitals have come
to an agreement. Adventist in Chicago includes: Hinsdale Hospital,
GlenOaks Hospital & La Grange Memorial Hospital, all in the Western
Suburbs..
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