Can the cost of health benefits change if a severance packagestates otherwise?
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Can the cost of health benefits change if a severance packagestates otherwise?
After 23 years with my employer my job was recently excessed and I received a severance package for 23 weeks taking me through the end of the year. Regarding my health benefits, my severance agreement states, “Employee is presently enrolled and will continue to be eligible to participate in the College’s group health plan as offered to active employees pursuant to the following limitation. The College will pay the premiums of said health plan until January 31st…” The College is changing the benefits package effective October 1st whereby “—College will be offering these plans with a cost share, XX College will pay for 90%of the premium and require a 10% contribution from those who elect to continue their coverage…” The HR department is telling me that I have to pay the premium as it is what is offered to active employees. I believe I will be paying the increased deductibles and out-of-pocket expenses but they should be paying 100% of the premium as the agreement states. Am I responsible for premium? I have to pay in 2 days but would like to know my options.
Asked on September 13, 2010 under Employment Labor Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
From the language you quote--". . . as is offered to active employees pursuant to the following limitation..." it would appear that you need to pay the same amount as would active employees. The agreement appears to state that the employer's obligation is implicitly to pay the share they do for employees, since your obligation is explicityly to "participate . . .as . . . active employees." From the structure of what you quote, it would appear that the "limitation" is that the employer will only pay its share through Jan. 31st.
However, that is based only on the language you have quoted, which is just a few lines. For a definitive answer, you should bring the agreement to an employment law attorney who can analyze it for you. Good luck.
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