Can my employer change my retiree benefits?

Lexi, Chatbot

I understand how frustrating it can be when your employer is not honoring promised benefits. Can you tell me if you have received any written communication regarding the changes to your medical benefit package?

Lexi, Chatbot

Have you already attempted to discuss this issue with your employer or HR department, and if so, what was their response?

Lexi, Chatbot

Is there anything else the employment lawyer should know before I connect you? Rest assured, they’ll be able to help with your benefits change.

Legal Eagle

Good afternoon and welcome. Please give me a moment to review your question.

Note that I am a hearing-impaired expert, so phone calls are difficult for me. Thank you for understanding.

Just so you are aware, this is a legal information-only site. I do not provide representation, and no attorney-client relationship is formed. My answers and comments should not be considered legal advice. It’s always best to hire a local attorney to review the specifics of your case to ensure a proper review is conducted.

Legal Eagle

I’m really sorry you’re going through this—especially while managing chronic health conditions like MS. The situation you’ve described is not only frustrating but potentially unlawful, depending on the specific promises made by your employer and the documentation governing your retiree health benefits.

In most states, retiree health benefits are generally governed by federal law under the Employee Retirement Income Security Act (ERISA), unless you were a public employee, in which case state law may also apply. Under ERISA, employers are not legally required to provide retiree health benefits, but if they make a clear and specific promise to continue those benefits for a defined period or for life, that promise may be enforceable.

The key issue is whether your employer reserved the right to amend or terminate the plan in the plan documents, such as the Summary Plan Description (SPD) or any collective bargaining agreement.

If your SPD or other formal plan documents explicitly stated that you would remain on the employer’s medical plan through December 2025, and there was no language reserving the employer’s right to change or terminate that benefit, then you may have a strong legal argument that your employer is breaching a contractual obligation.

Courts have held that when employers make specific, unambiguous promises about retiree health benefits—especially those that are time-bound or for life—those promises can create vested rights. However, if the plan documents include language such as “the employer reserves the right to modify or terminate the plan at any time,” then the employer may legally be allowed to make changes, even after retirement.

The fact that your employer is avoiding direct answers and providing contradictory information could also be relevant. Under ERISA, plan administrators have a fiduciary duty to act in the best interests of plan participants and to provide clear, accurate information about benefits. If they are failing to do so, that could be a breach of fiduciary duty.

You have the right to request, in writing, copies of all plan documents, including the SPD, amendments, and any communications that outline your retiree health benefits. Your employer is legally obligated to provide these within 30 days of your request. If they fail to do so, they may be subject to penalties. You should also preserve all emails, letters, and other communications that support your understanding of the promised benefits, especially anything referencing the December 2025 date.

Given your long tenure and the serious health implications of losing coverage, this is not just a legal issue—it’s a deeply personal one. You may ultimately need to assert your rights through a formal complaint to the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) or potentially through legal action in federal court.

But before that, it may be helpful to send a formal letter to your employer or HR department, citing the specific documents and promises you are relying on, and requesting immediate reinstatement or clarification.

If you were a public employee, state law may offer additional protections, particularly if your benefits were part of a collective bargaining agreement or state retirement system. Either way, you are not powerless, and there are legal avenues to pursue if your employer is not honoring its commitments.

Legal Eagle

Does that make sense?

Legal Eagle

We are not able to offer representation—just general Q&A only. I hope that’s clear, my friend.