The decision clearly flew in the face of the corporate culture they had worked under. They thought they deserved better. They fought back, but found neither the company nor the courts shared their opinions. It' s been that way since companies decided to trim costs by whittling away at benefits once promised to retirees. It would seem that even though companies claim to provide benefits for life, nearly all retirement plans contain a reservation of rights clause that can nullify that promise with the stroke of a pen.
Retirees have a right to be upset.
Now, Rep. John Tierney, D-Mass, is taking up their fight. Tierney has a bill pending in Congress that would close loopholes that allow companies to take away benefits they have promised. Some companies have gotten just plain reckless, however. They have discovered that they can increase their own wealth by eliminating retirement benefits. To safeguard promised benefits, Tierney wants to amend the federal Employment Retirement Income Security Act, which regulates company health and pension plans.