By Sheryl Smolkin
Companies that still offer health coverage to future retirees are reducing the value of these benefits and making them available to only longer service employees.
According to the 2009 Towers Watson Comparison study, 43% of the participating organizations have post-retirement health coverage and 27% maintain retiree dental programs. In over 1/3 of these companies, only employees who are age 55 with 10 years of employment are eligible for health and benefits at retirement.
“Even where companies want to keep retiree benefits they may need to change the way they are structured,” says Aon Hewitt’s Health & Benefits Innovation Leader Tim Clarke. “They are looking at stricter eligibility, but at the same time if they are providing benefits to fewer people, they can actually be more generous with the benefits they provide.” READ MORE