Virginia Healthcare Cuts Slice into Early Retirement

October 10, 2008: New retiree healthcare cuts in Virginia Joint Council 83 will make it harder for members to take early retirement.

Starting Jan. 1, 2009, new retirees with less than 30 years of accrued service will only receive a maximum of eight years of retiree healthcare coverage.

Retirees already pay for their coverage in Virginia—but after eight years they’ll be totally cut off from retiree healthcare coverage, no matter how much they’re willing to pay.

That means people taking 25-and-Out will have to wait until they’re at least 57 to retire if they want to keep healthcare coverage until they’re eligible for Medicare.

Members with more than 30 years of accrued service will be unaffected.

Members can go on and off the Joint Council 83 healthcare plan and break up the eight years of coverage. But if they are not covered by another plan during the time they are off the Joint Council plan, they lose their right to return to the Teamster plan.

Plus, there’s no change in the Joint Council 83 re-employment rules, to give retirees more options to get healthcare coverage.

Click here to download the letter from the fund detailing the cut.

TDU and our union fought in the 1990s to win 25-and-Out early retirement benefits. Now many health and welfare plans are making it harder to take advantage of this good Teamster benefit.

What do you think our union should to protect early retirement? Click here to send a comment or a question to TDU’s Pension Network.

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