Health premiums doubling for retired civil servants

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OTTAWA (NEWS1130) – Retired federal public servants will be required to pay more toward their health benefits under a deal announced today in the capital.

Under an agreement with public sector unions, premiums paid by retirees for those benefits will double for all but those with the lowest incomes.

Treasury Board President Tony Clement says both sides made compromises to reach the deal.

But at least one union says it has little choice to give into most of the federal government’s demands, which it says were made under threat of legislation.

Currently, retired civil servants pay 25 per cent of their health premiums while taxpayers pay 75 per cent.

Under the new agreement, premiums will be paid under a 50-50 formula.

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