BREAKING: Regents Could Decide Fate of UNM Retiree Health Program Soon

A decision on whether to cancel or reduce retiree health care benefits for former University of New Mexico employees and their dependents could happen within the next few months.

Regent Jamie Koch at a regents meeting today (Tuesday) asked that regents vote to take action on the program in January. That means regents will cast a vote next month deciding whether to take action themselves, or to let a task force make recommendations. If regents do ultimately take action, they could eliminate the program, reduce the amount the university contributes in premiums, or leave it as is. Current retirees, however, would not be affected.

UNM pays 54 percent of premiums for 2,500 retirees who are not yet eligible for Medicare, but there are another 1,000 employees who are eligible, and 6,500 who are in the pipeline.

Last year the program cost UNM $14 million, and an audit found that could soar to $153 million over the next 30 years. UNM would need to set aside $25 million a year to cover the costs from now on, the audit found.

Koch has said the plan is a generous one not often seen in the private sector.

During the meeting on Tuesday, regents approved a resolution that instructs President Bob Frank to assemble a team of administrators, retirees, faculty and staff that will look at ways of reducing the school’s projected benefits cost. The team would need final recommendations by the upcoming Spring budget cycle, and that could be implemented next fiscal year, which begins July 1.

The regents audit committee, which first passed the resolution at a meeting in Santa Fe next week, amended it to include what amounts to a warning that UNM may change the ratio of contribution for the program.

“We know there’s a problem, and we know it’s pretty big,” David Harris, executive vice president for administration, said at the meeting last week.

But a decision on the fate of the program could come much sooner than next Spring. Regents president Jack Fortner said he would allow Koch’s request to go through.