fix042808

Recent EEOC ruling confusing to retirees

By KAREN YOUSO, Star Tribune

Last update: April 27, 2008 - 4:48 PM

Q There seems to be quite a bit of confusion over the meaning and application of a recent ruling by EEOC (U.S. Equal Employment Opportunity Commission). If I have it straight, the new ruling allows employers to reduce benefits to retirees. We seniors wonder which retirees this will affect, and which benefits?

A Attorney Michael Kellett with the Upper Midwest Pension Rights Project isn't sure exactly which ruling you are referring to, but suspects it has to do with changes in the Pension Protection Act. A recent ruling was the first time that Congress made an exception to the anti-cutback rule that protects workers' accrued benefits.

Basically, the ruling applies to multi-employer pension plans that are in "critical" status. Plans that are funded below 65 percent are permitted to give notice that they will reduce subsidized benefits paid prior to the standard retirement date (early retirement benefits). However, this is subject to negotiation with the union.

Another EEOC ruling does not refer to pensions, but does apply to older adults' medical coverage. Formerly, it was considered discrimination to treat workers over age 65 differently because they qualified for Medicare. The letter issued in April reversed that rule, permitting employers to take into account the Medicare-eligible status of the employee.

Rent a Prius?

If you want to rent a Prius for your next vacation, but it can be difficult.

Two Twin Cities firms rent the vehicles, Enterprise Rent-A-Car and Toyota dealers such as Rudy Luther Toyota in Golden Valley. The rub is that Enterprise has a limited number in its fleet so it can't guarantee you a Prius, and Rudy Luther rents only to customers who have their cars in for service.

So, for the time being, the most reliable way to drive a Prius on your next vacation is to buy one.

Send your questions to Fixit in care of the Star Tribune, 425 Portland Av. S., Minneapolis, MN 55488, or call 612-673-7032, or e-mail fixit@startribune.com. Past columns are available at www.startribune.com/fixit. Sorry, Fixit cannot supply individual replies. Fixit appears daily in Source except on Friday.

Continue to next page