As Traditional members consider whether to take advantage of the second round of the $50,000 SAP incentive there are questions about future retirees. There is no such incentive for Tier 2/In Progression members. On September 5th of this year we posted PTWO: Is This The Tier 2/In Progression Retirement Plan?
The SAP and its retirement incentives are only available to hourly workers hired before the auto crisis. In response to the crisis, workers hired after the crisis are not eligible for a defined-benefit pension or retiree health care. In the last sixteen years, thousands of folks have been hired and are working for the Big 3 automakers. Some of these autoworkers are already at the half-way mark of what would have been pension eligibility at thirty years of service. Considering it took fifteen years to resolve the unfair system of Tier 2 wages the time is now to consider retirement options for these members.
Those options may have just gotten fewer. A YouTube video by The Duke of Early Retirement takes a look at what the impact of the incoming Trump administration promise to gut the Affordable Care Act (Obamacare) would have on folks retiring early.. This is important when considering the fact that the average retirement age is 62. Medicare doesn’t start until 65. That leaves many retirees, including Tier 2/In Progression members without retirement health care benefits to figure it out for themselves. Many folks are forced into early retirement by health issues, family obligations, or other concerns.
Currently, the subsidized health insurance plans available under the Affordable Care Act are one of the best options to bridge the gap between early retirement and Medicare. What if a member that has family obligations could still work three days a week, bringing their experience and skills on a part-time basis? What if this member could still keep their health insurance? Now, that would be a life-changing benefit. Let’s make PTWO (Part-Time on the Way Out) a reality next contract. Your ideas are welcome.
(Graphic by Wikipedia Commons)
