Originally Posted by tightasadrum
buried in the wording was something that most people missed: after three more years, megacorp would no longer contribute MORE than they were contributing at that time in the future.
The Megacorp I retired from did the same thing. The subsidy level to retiree medical coverage was fixed a number of years ago and all increases in premiums have been born by the retirees ever since. In my case, I didn't retire until 58 yo so I have only 7 yrs until Medicare kicked in and the subsidy still represents a significant discount to what the premium would be otherwise. But, for younger folks, the fixed subsidy is becoming a smaller and smaller percentage as premiums continue to rise until eventually it will become like no subsidy at all.
When Megacorp announced the change, it happened quietly. People near retirement were grandfathered to the old plan, so no complaints from them. Younger folks seemed disinterested. When I brought it up in lunchtime discussions, few seemed to care or understand what the change meant.
Since then, Megacorp has announced that new hires are not eligible for retiree medical coverage at all. HR/Staffing reports that recruiting was not negatively impacted by this.
My own feelings are that:
1. Pensions (including government jobs) should be completely portable and move with the employee from job to job (such as 401K plans with immediately vesting employer contributions and SS).
2. Health insurance (including government jobs) should not be tied to employment.
It's sad to hear about so many folks absolutely miserable in their jobs but locked in golden handcuffs because of pensions and health care. How much more productive could our economy be if folks could work where they were interested in working without worrying that they're leaving benefits behind?
It's sad to hear about so many folks being screwed (or thinking they're being screwed) by employers over long term commitments involving pensions and health insurance coverage.