Vanguard Reverses Decision to Terminate Popular Medical Benefit for Current, Retired Employees
Within a day of its announcement, Malvern-based investment giant Vanguard reversed its decision to terminate a popular medical benefit. Many of its current and past employees depend on the company perk to mitigate healthcare costs, writes Erin Arvedlund for The Philadelphia Inquirer.
Vanguard first said the retiree medical account (RMA) benefit would be removed on October 4. But after employee feedback, the firm modified its decision the following day and extended the program.
The length of this reprieve, however, is currently unknown.
“We sincerely apologize for the abrupt timing of yesterday’s announcement and have decided to recalibrate our approach in light of important feedback from crew and retirees,” said the company on Tuesday.
On Monday, employees were informed via email that the retiree medical account program was being disbanded immediately.
“I worked at Vanguard 35 years, and as a result of that, I accrued about $150,000 in nontaxable funds that they put into the account,” said resident Greg Wynn, now 59, of Spring City, before the company changed its mind. “That money was available to pay for health care until I was Medicare eligible.”
While the financial giant can end the RMA program at will (according to the company’s benefits contract), employees were stunned it was removed so completely and suddenly.
Read more about the RMA snafu in The Philadelphia Inquirer.
Stay Connected, Stay Informed
Subscribe for great stories in your community!
"*" indicates required fields