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The following is not meant to be legal advice.

On June 4, 2007, in American Association of Retired Persons v Equal Employment Opportunity Commission, No. 05-4594, the Federal Court of Appeals for the Third Circuit allowed the Equal Employment Opportunity Commission (EEOC) to permit employers to reduce or eliminate employer sponsored retiree health benefits when retirees are eligible for Medicare or a state-sponsored retiree health program.

In July 2003, the EEOC proposed regulation permitting reductions or terminations of retiree benefits to coordinate with Medicare. The American Association of Retired Persons (AARP) challenged the proposed EEOC regulation.   In September 2005, the district court reversed a winning challenge by the AARP basing the reversal on a U.S. Supreme Court decision in National Cable and Telecommunications Ass’n v Brand X Internet Services, 545 U.S. 967 (2005).

The Third Circuit court stated that Section 9 of the ADEA provides the EEOC with authority to provide exemptions from the prohibitions of the ADEA.