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Archived News Release--Caution:
information may be out of date.
For more information call: 202/219-7316.
Fewer retirees receive health benefits from former
employers and those who do pay higher premiums, according to a report issued
today by the Department of Labor's Pension and Welfare Benefits Administration
(PWBA).
The report, "Retirement Benefits of American Workers," is
based on the Current Population Survey prepared by the Census Bureau.
"This report shows many retirees are just barely getting
by," said Secretary of Labor Robert R. Reich. "Congress can't cut $450 billion
from Medicare and Medicaid without shifting that cost onto retirees who can't
afford it."
"For 30 years, this nation has moved in the direction of
greater retirement security. Now, with retirement benefits declining and with
Medicare under assault, we are heading in the opposite direction," Reich
said.
"Rather than cutting Medicare to finance a big tax cut for
people who don't need it, Medicare should be reformed in a way that reduces
costs," Reich said. "That's exactly what the President's plan will do.
Reich said the report shows "the number of retirees who
receive health benefits from former employees is dropping rapidly because of
higher costs."
The data in the report showed:
- The proportion of retirees who receive employer-sponsored health care
benefits fell from 44 percent in 1988 to 34 percent last year.
- The decrease appears to be associated with rising costs. Retirees who
still receive employer-paid health care reported a 10 percent increase in
premiums, while many of those who dropped coverage did so because it was too
expensive.
- Fifty-six percent of the 13.2 million retirees 65 and older receive
no pension income other than Social Security.
- The 4 million early retirees - between the ages of 55 and 65 -
reported similar statistics. Of that total, 54 percent reported they received
no employer benefits.
- The inflation-adjusted benefit received by a typical pensioner has
been reduced by half since 1979 because the majority of annuities don't
increase to keep pace with inflation.
Copies of the report are available from the Pension and
Welfare Benefits Administration, 202/219-8921.
Archived News Release--Caution:
information may be out of date.
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