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Washington, DC-- Today Congressman David Wu called upon President Bush to halt the Equal Employment Opportunity Commission's (EEOC) proposed rule that could threaten retiree health care coverage for millions of Americans. Recently, the EEOC voted 3-1 along party lines to propose a new rule that will allow employers to provide different levels of health benefits based upon age.
"For the first time in their 39-year history of fighting discrimination, the EEOC has actually approved a policy that will allow employers to discriminate on the basis of age," said Congressman David Wu. "The EEOC should not write age discrimination into the law."
The Age Discrimination in Employment Act (ADEA) made it illegal for employers to treat older workers or retirees different from anyone else.The EEOC's ruling has now given employers an exemption to this law when it comes to retiree health benefits.
Employers can now "coordinate" the benefit with Medicare and similar state plans. This allows employers to keep offering coverage to younger retirees, while reducing or stopping benefits once they reach Medicare eligibility, typically age 65.
More than 12 million current Medicare beneficiaries receive benefits from their former employers. If this rule takes effect, there will be nothing to prevent employers from altering, reducing or eliminating the health benefits of any retiree over the age of 65.
The EEOC was created in 1965 to protect employees from illegal discrimination, and since that time it has fought to protect workers who have been discriminated against on the basis of race, gender, disability, national origin or age.
"This is a question of fairness. Employees who have worked hard for their employer, and have been promised health benefits upon retirement, should not be discriminated against. The EEOC is now allowing employers to legally break that promise."
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