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Brown Cafe UPS Forum
UPS Union Issues
Healthcare cost raised for the retired
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<blockquote data-quote="Inthegame" data-source="post: 2096328" data-attributes="member: 37112"><p>The company has plenty of money to keep rates low, they just don't want to spend it on retirees.</p><p>Realistically, $50 a month wasn't going to last indefinitely. Years ago that $50 represented 20-25 pct. share on the retiree for the total cost of a retiree plan. Now a retiree break even is closer to $1500 a month, making a $150 a month charge only 10%.</p><p>Remember as we age, healthcare utilization kicks up so retirees actually account for a disproportionate amount of the "pools" cost. Even with the increases on the retirees, UPS still increases their H&W outlays for retirees every year.</p><p>They also have the conundrum of wanting the old guys out, but not wanting to pay their H&W in retirement.</p><p>But they broke em, they should fix em, and they got the money.</p></blockquote><p></p>
[QUOTE="Inthegame, post: 2096328, member: 37112"] The company has plenty of money to keep rates low, they just don't want to spend it on retirees. Realistically, $50 a month wasn't going to last indefinitely. Years ago that $50 represented 20-25 pct. share on the retiree for the total cost of a retiree plan. Now a retiree break even is closer to $1500 a month, making a $150 a month charge only 10%. Remember as we age, healthcare utilization kicks up so retirees actually account for a disproportionate amount of the "pools" cost. Even with the increases on the retirees, UPS still increases their H&W outlays for retirees every year. They also have the conundrum of wanting the old guys out, but not wanting to pay their H&W in retirement. But they broke em, they should fix em, and they got the money. [/QUOTE]
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Healthcare cost raised for the retired
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