In a move that will likely be the subject of many angry letters and op-eds, Nissan, the Japanese car manufacturer, has announced it will cut health insurance and pension benefits for U.S. employees to “remain competitive.”
From Medical News Today:
Nissan informed workers with manufacturing jobs that, starting at age 65, they will receive an annual stipend to supplement Medicare coverage instead of receiving supplemental health care coverage from the company. A Nissan spokesperson said that once changes are made, a qualifying retired couple could receive $5,000 in addition to annual 3% increases.
Nissan’s decision serves as a warning to American workers in any industry. As the retirement age is pushed higher, companies are burdened with expensive health care supplements. Companies like Nissan provide an incentive for employees to seek additional insurance coverage outside the employers plan and put more money toward tax-deferred 401(k) investment plans. Many workers won’t like it, but in the end it may save the American auto industry.