Mutual fund CEO got it ‘dead wrong’ in cutting retiree health benefits

Valley Forge, Pa.-based investment management firm Vanguard issued an apology Oct. 8 to employees and retirees over cutting promised health benefits.

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The mutual fund, which is known for its lower employee salaries but industry-leading benefits, said it would cut its retiree medical accounts Oct. 4 before swiftly reversing its decision, according to The Philadelphia Inquirer

CEO Tim Buckley said the company got it “dead wrong” in proposing to slash the health benefit. 

The retiree medical account is funded with $5,500 a year starting after age 40, which many employees use to pay for medical bills, according to the Inquirer.

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