Wells Fargo is scaling back a key medical benefit for retirees in a move upsetting some former employees who will soon see their health care subsidies slashed.
The San Francisco-based bank is planning to reduce the funding it contributes to medical accounts from which retirees receive reimbursements for health care expenses. Some affected employees and their dependents say it will cut their subsidies by hundreds of dollars a year, making it tougher to cover medical costs.
“That was supposed to pay for medical for me and my spouse for the rest of our lives,” said Donna Hargett, who worked for Charlotte-based First Union, a predecessor bank of Wells Fargo. Hargett, 64, said her family’s annual allowance will drop from $1,320 to $900 after the change takes effect Jan. 1.
“Twenty-something years of service, and I end up with $900 bucks,” she said. “I just think it’s wrong.”