Can retirees’ health benefits be terminated or changed if their former employer is affected by a pandemic?

Answer:

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.

Workplace Frequent Questions by Category:

• Human Resource Policies and Pandemic Planning

• Equal Employment Opportunity (EEO) and Privacy Issues

• Workplace Benefits

• Workplace Safety and Health Issues

• Unemployment Issues and Financial Assistance

• Private Sector Workplace Issues

Last Updated: 01/25/2008