Retirees face benefit cuts

UNM’s retiree health benefits may face some cuts.

Helen Gonzales, vice president of Human Resources, announced in a UNM Today column the creation of a task force that will work to cut health insurance costs.

Gonzales didn’t respond to repeated interview requests, but said in her column that UNM’s unfunded liability for retiree health insurance was $131.9 million in 2009, up from $91.3 million in 2007.

“Given this increase in costs, UNM needs to reevaluate the retiree health plan,” Gonzales wrote. “While it is our goal to continue to offer retiree health benefits, we must do so within the context of rising costs, limited funding and budget cuts.”

The task force, composed of employees and retirees, will submit any recommendations by July 2011. The group will look at, among other things, changing the eligibility criteria for health insurance.

Mary Thomas, a University College employee, said she doesn’t support the changes.

“I think they’re making long-term decisions that are going to be dismantling the stability of the state,” she said. “They have to be cognizant that they cannot make short-term fixes that disrupt education as an entity.”

Thomas also said that changes to retiree health insurance will negatively impact current employees, especially since the Educational Retirement Board is set to reduce retirement benefits.

“We’re a state program,” she said. “What happens there happens here — trickle down, trickle around. Employee loyalty will be lost, commitment to low-paying jobs, like education jobs, will be lost, and it will affect education as an industry.”