Why Were Memphis City Retirees Health Benefits Reduced?

The Memphis City Council voted to reduce health benefits for current employees as well as retired employees, according to this article by News Channel 3 report:

The reason cited was rising health care costs, as well as needing extra funds for the city’s pension benefit to retirees.

A single person that retired before reaching age 65 currently pays $184/month for the premier plan. Due to this reduction in benefit that cost will go up to $836/month.For a family the current monthly premium is $365, but it will increase to $1,656/month.

This is a good example how a retiree must be proactive in their retirement planning to adjust for unforeseen circumstances. Things can change, and we’ll find out more about how the Memphis City pension plan will change as the council will begin discussing this on October 7th 2014.

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