Vanguard CEO on Abrupt Medical Benefit Cuts: ‘We Missed the Mark’

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Image via Vanguard.
Vanguard CEO Tim Buckley.

Vanguard CEO Tim Buckley issued an apology last week to current and retired employees over the company’s cutting of key medical benefits with no notice, writes Erin Arvedlund for The Philadelphia Inquirer.

“I sincerely apologize for the anxiety and stress this decision has caused,” he said. “We know we missed the mark. I can assure our retirees they can continue to count on their (retiree medical accounts) RMA benefit going forward.”

He added that any changes regarding retiree medical accounts that are funded by the investment giant will be shared in the following weeks.

“Thank you for your patience as we correct our mistake,” Buckley said.

The long-standing retirement benefit that funded employees’ medical accounts is $5,500 a year beginning after age 40. And while Vanguard is considered to have lower pay than most in the financial industry, its stance on offerings such as RMA benefit make up for the difference.

Some employees and retirees — after decades of service — stood to lose hundreds of thousands of dollars needed to cover their medical costs and healthcare premiums.

Read more about Vanguard in The Philadelphia Inquirer.

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