Arbitrator: New T retirees will now pay for health care

BOSTON. For the first time, MBTA retirees will now have to contribute to their health care premiums, an arbitrator has ruled, one of several policy changes that will save the agency $17.5 million in total.

New retirees will now pay 10 percent of the health care premiums, which will save the MBTA $1.5 million. 

The arbitrator ruling included increasing medical co-pays, in some cases three or four times the current amount, leading to a $16 million savings for the T.

The ruling will also award MBTA workers a 13 percent pay increase over four years, which will cost the T $150 million. The union asked for a 24 percent increase.

The union had been working without a contract since June 30, 2006.

“The wage adjustments and improvements were modest and the decision to award retroactive pay was appropriate,” said Boston Carmen’s Union President Stephan MacDougall, in a statement.