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Benefits February 25, 2002
Retiree Group Protests Premium Hikes
February 25, 2002 (PLANSPONSOR.com) - A recently
announced decision by Kaiser Aluminum & Chemical Co. to
pass along $10 million in health benefit costs to its
retirees has sparked the anger of Kaiser's retiree group and
threats of legal action.
Reported by Fred Schneyer
Kaiser Aluminum Salaries Retirees Association (KASRA) said the company’s benefits funding decision was announced in a February 9 letter – three days before Kaiser sought federal bankruptcy protection.
KASRA complained in a press release that the company is making no such move affecting its current salaried or hourly workers.
In order to keep the Kaiser Aluminum-provided medical coverage, most salaried retirees 65 and over now will have to pay $130 a month for themselves, $130 a month for their spouse, and $130 a month for each dependent. If they are under 65, they will have to pay $175 a month for themselves, $175 a month for their spouse, and $175 a month for each dependent.
KASRA officials said they’re arranging for outside legal representation in case they need to take the issue to court.
KASRA currently has approximately 3,000 retiree and surviving spouse members. There are approximately 4,500 Kaiser Aluminum salaried retirees.