PRE-TAX DOLLARS FOR RETIREE HEALTHCARE COSTS

WHEREAS, the advantages of pre-tax dollars used for medical costs available to working people should not be removed from them upon retirement; and

WHEREAS, American workers whose contracts and/or employers have opened the provisions of Section 125 of the Internal Revenue Service Code to shelter from federal taxes pre-determined amounts of money to be used for out-of-pocket medical expenses; and

WHEREAS, the cost of those prescription drugs taken by retirees is increasing at three times the amount of the costs of other drugs; and

WHEREAS, the financial hardship specifically placed on retirees must be addressed in a manner that opens the possibility of tax savings on out-of-pocket medical costs in order to allow them to live out their lives in relative comfort rather than forcing them to bargain with life in their later years:

RESOLVED, that the American Federation of Teachers and the AFL-CIO seek either new legislation or language changes in the appropriate regulations of the Internal Revenue Service Code that would enable retirees to benefit from the same Section 125 benefits that their working counterparts are able to enjoy.