On September 21, 2009
Pfizer to Cap Retiree Health Benefits: Out of Time? Out of Luck.
Pfizer is to cap the amount of healthcare benefits it will pay to retired employees based on their years of service with the company, according to The Day. Any retiree who hasn’t worked long enough for Pfizer or who has expensive medical bills may find Pfizer’s willingness to continue covering them has a limit. Under the new “Total Rewards” program, Pfizer employees earn a “Retiree Medical Subsidy” based on their years of service. The Day gives this example: Mary, the hypothetical Pfizer employee in the brochure example, retires from Pfizer after 20 years of service, with an RMS of $220,000. The annual cost of coverage for Mary and her spouse is hefty in the five years before she is eligible…
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