Bowing to criticism from employers and employee groups, the EEOC has officially rescinded its policy of applying the Age Discrimination in Employment Act (ADEA) to employer-sponsored retiree health benefit plans.
The unpopular guidance had said thatviolate the ADEA if they stop or are reduced when an employee becomes eligible for Medicare.
Critics argued that the policy discouraged employers from providing valuable retiree health plans, such as those offering extended coverage or a Medicare "bridge."
Looking ahead, the EEOC said it will develop a new policy that doesn't discourage employers from providing such plans but that still is consistent with the ADEA. Stay tuned.
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