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Retiree Medical Benefits

Montgomery McCracken’s employee benefits attorneys worked closely with two international companies to implement major reductions in the companies’ retiree medical benefits programs and thereby save over $100 million in the cost of those benefits. Montgomery McCracken analyzed the proposed retiree medical benefits reductions and all of the underlying relevant plan documents, summary plan descriptions, employee communications, etc. to determine whether and to what extent the companies were vulnerable in each of the twelve federal circuits to participant claims under ERISA or the Labor Management Relations Act that the retiree benefits had vested and could not be reduced. Montgomery McCracken’s counseling enabled the companies to evaluate their exposure to such claims and determine how to implement the desired reductions in benefits and achieve the associated cost savings.