Pension plans will remain unchanged
Bell Canada Inc. will begin eliminating retiree benefits for future retirees starting in 2012.
The Montreal-based telecommunications giant said it will phase out health care, dental, vision and life insurance benefits for retirees over the next decade. However, pension plans will not be affected.
Eligible employees retiring before Jan. 1, 2012, will continue to receive the benefits, while employees retiring between Jan. 1, 2012, and Jan. 1, 2017, will be entitled to company-paid medical coverage until they reach age 65.
After Jan. 1, 2017, retiring employees will not be entitled to company-paid benefits but will have access to optional health plans.
A company spokeswoman said that offering these retiree benefits is no longer competitively viable for the company because no other telecommunications company in Canada offers extensive retiree benefits.
The Montreal-based telecommunications giant said it will phase out health care, dental, vision and life insurance benefits for retirees over the next decade. However, pension plans will not be affected.
Eligible employees retiring before Jan. 1, 2012, will continue to receive the benefits, while employees retiring between Jan. 1, 2012, and Jan. 1, 2017, will be entitled to company-paid medical coverage until they reach age 65.
After Jan. 1, 2017, retiring employees will not be entitled to company-paid benefits but will have access to optional health plans.
A company spokeswoman said that offering these retiree benefits is no longer competitively viable for the company because no other telecommunications company in Canada offers extensive retiree benefits.
