Retirees and the ADEA Does your company offer health insurance or other benefits to your retirees? Do you plan to reduce or eliminate those benefits when retirees become eligible for Medicare benefits? If so, be careful that you don’t violate the Age Discrimination in Employment Act (ADEA). A federal appellate court ruled last year that an employer violated the ADEA when it offered retirees over age 65 fewer benefits than younger retirees. But eliminating or reducing retiree benefits compared to benefits offered to active employees doesn’t constitute discrimination based on age but on employment status, which the ADEA doesn’t bar. The EEOC has issued guidance for employers. In a nutshell, you have four options: 1. Equalize retiree benefits, 2. Equalize retiree costs, 3. Trigger retiree benefits on a basis other than age, or 4. Eliminate all retiree benefits. If this all sounds complicated, it is. But we’ll be glad to help you sort it out. Contact | Legal Disclaimer