Kodak Retirees Lose Health, Welfare Benefits

from Spencer’s Benefits Reports: A U.S. Bankruptcy court judge has ruled that Eastman Kodak can quit providing health and welfare benefits to 56,000 U.S. retirees and their dependents. The ruling is part of Kodak’s Chapter 11 bankruptcy and restructuring, and Kodak intends to quit offering these benefits by the end of the year. Kodak currently spends about $10 million a month on these benefits.

The two largest components of the retiree-related debt are health coverage for 32,000 Medicare-eligible retirees, representing a $440 million liability for Kodak, and a survivor income Benefit for 7,500 people representing a $510 million liability. Kodak stopped offering the survivor income benefit in 1995, which guaranteed that 30 percent of a retiree’s pension annuity would get paid to a surviving spouse.

Since filing for Chapter 11 protection in January, Kodak already cut the Kodak Excess Retirement Income Plan and Kodak Unfunded Retirement Income Plan—a pair of supplemental pension plans for highly compensated retirees.

For more information, visit http://www.kodak.com.

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