MBTA workers' retirement benefits take a hit

July 8, 2008 01:57 PM Email| Comments (0)| Text size – +

By Noah Bierman, Globe Staff

MBTA workers, who have one of the most generous benefit packages in the country, will be required for the first time to contribute toward their health insurance when they retire, an arbitrator ruled this week.

The change takes effect today, requiring that new retirees in the MBTA's largest union pay 10 percent of their health insurance costs. Workers who are already retired will continue to get free healthcare for life.

The arbitrator also agreed to raise copayments for active workers, which have not changed in at least 20 years, according to Daniel A. Grabauskas, general manger of the Massachusetts Bay Transportation Authority.

nder the old contract, workers paid only $3 or $4 to fill a prescription and only $5 to visit a doctor. The new contract raises those copayments to between $5 and $20 for prescriptions and $20 to visit a doctor.

Though the T expects to save $17.5 million from the changes in healthcare, the workers won a 13 percent wage increase over the life of their 4-year contract. The increase will cost the authority $150 million. The T is already tapping its rainy day fund to meet basic costs this year and Grabauskas acknowledges he does not know where the agency will find the money to pay for the wage hike.

“It's good news insofar as our ability to finally win significant concessions in healthcare, but it's not completely good news,” Grabauskas said.

Steve MacDougall, president of the Boston Carmen's Union, Local 589, said the "wage adjustments and improvements were modest."

"The Union worked hard to make the case for wage increases, retroactivity and other improvements. The changes to the future retiree health care insurance are unfortunate but not surprising," he said in a statement.