MADISON, Wis. – CUNA Mutual Group said that effective Jan. 1 it no longer will subsidize medical benefits for retirees.
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The move, which will affect approximately 1,000 retirees, is expected to save CUNA Mutual $100-million. Under CUNA Mutual’s current plan, the company covers 50% of retirees' medical coverage premium. CUNA Mutual said it will provide a lump sum payment to retirees equal to two years of the company subsidy during a transition period, and that retirees still have the option of purchasing medical plans through the company.
CUNA Mutual cited the economic downturn in making the move.
