During the Aug. 25 CPS Energy board meeting, Trustee Willis Mackey expressed empathy for the retirees’ advocating against the utility’s new health plan. Mackey said that “turning 65 is trauma.” This photo is from a 2021 board meeting.
Kin Man Hui, San Antonio Express-News / Staff photographer
CPS Energy trustee Janie Martinez Gonzalez expressed regret for not paying enough attention to a retirees letter that’s become the focus of questions regarding the utility’s health plan. She’s seen here in 2024.
Josie Norris/San Antonio Express-News file photo
A letter issued to CPS Energy employees who retired under CEO Milton Lee sparked debate at the August board meeting over its interpretation, as the utility looks to update its health plan. Trustee Willis Mackey empathized with the retirees and said, “I can understand and relate to what they’re going through. When you turn 65, you all are going to see. It’s chaos.”
This photo is from a previous board meeting regarding possible rate increases.
Jessica Phelps
A letter issued to CPS Energy employees who retired under CEO Milton Lee sparked debate at the August board meeting over its interpretation, as the utility looks to update its health plan. This photo is from an April CPS Board Meeting.
Sam Owens/San Antonio Express-News
A letter issued to CPS Energy employees who retired more than 15 years ago under former CEO Milton Lee has sparked debate — and regret from at least one trustee — as the city-owned utility looks to update its health plan in 2026.
Retirees like Freddie Jean Satcher believed the letter from Lee, who was the utility’s CEO from 2002 through 2010, was a guarantee that their health plan would not change.
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“They held the certificate in front of us and said, ‘You work here 35 years. You get to keep the same benefits,’ ” Satcher said at the utility’s August board meeting. “Why the change?”
But board secretary Shanna Ramirez argued that even with the changes to the health plan, which experiences slight fluctuations every year, the utility is standing by its word.
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“The retirees may read the obligations differently than I do, but what we are doing right now fully honors the promises made,” she said. “I disagree with the representation that what was promised was a policy and benefits that never changed, either in content, nature or costs. That simply wasn’t a promise that was made.”
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The disagreement, which has been building for months, came to a head at last month’s meeting of the CPS board.
The plan, which was reviewed at the Employee Benefits Oversight Committee meeting in July, is not an item that the full board of trustees votes on. Chair Francine Romero said that the board had not responded to the concerns being raised at the meetings since April because it was not on the agenda — until the Aug. 25 meeting.
But trustee Janie Gonzalez, the previous chair of the benefits oversight committee, said she was concerned by retirees’ concerns. She admitted that she didn’t study the letter given to retirees.
“I don’t feel good about what, under my radar, I actually approved,” Gonzalez said. “I don’t believe that the information that I received was that transparent. However, I do believe that it is complex, and oftentimes we have to make tough decisions. It’s really hard to please everyone.”
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She also took responsibility for missing the letter that is now becoming an issue for the full board, which is set to meet again today.
“I apologize,” she told retirees last month. “I do believe that I failed as a chair and as your trustee. I didn’t ask enough questions.”
Medicare supplement
At issue is the company-sponsored Medicare supplement health plan for 2026.
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Veronica Uriegas, vice president of people and culture, told trustees the current plan does not coordinate well with Medicare, a concern heard consistently in conversations with hundreds of retirees. The utility was concerned by the skyrocketing price of claims, insurance and, most notably, pharmacy costs.
The proposed plan aims to address that, the utility said.
“CPS Energy is one of the few companies that offers retiree health benefits,” Dana Sotoodeh, CPS public relations manager, said in a statement. “With the rising cost of healthcare claims, we have created a program that will be sustainable for those currently enrolled in our benefits plans and for those of us who will become eligible for this benefit in the future.”
Annual deductibles in 2025 have ranged from $850 to $1,600. Under the new plan, the deductible would be $257, Uriegas said. She mentioned other benefits of the plan, such as no network limitation and inclusion of gym memberships.
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But hearing aids, which were previously covered, would not be under the new plan.
A retiree who asked to be anonymous due to fear of retaliation said the current breakdown of benefits is 90 pages long and that retirees have not been given a comprehensive look at how it will impact their benefits.
Retirees with at least 35 years of experience were previously told they would pay the same rate and have the same coverage as active employees, the retiree said. CPS declined to comment. But during last month’s board meeting, Uriegas acknowledged the new plan could cost that group $35 more per month.
The CPS Energy Health Plan is funded through contributions from employees and retirees, CPS Energy and the CPS Energy Health Trust. The new plan requires retirees to use Medicare when eligible, with the CPS Energy Plan becoming secondary.
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Too quick?
There was also board criticism of how quickly the new health plan is being implemented, but Uriegas explained that her team works on a year-to-year basis. That means thee’s a limited window to establish new plans.
The process of informing the 1,400 Medicare-eligible retirees of the change in plans started with writing to retirees on Feb. 27, followed by information sessions, group meetings, dial-in phone sessions, and in-person sessions. Romero said she was surprised by how strong the benefits in the updated plan are and said while attending a session, she spoke to people who were satisfied.
But trustee John Steen countered that it appeared the utility offered information sessions only for retirees to ask questions about a decision that had already been made. “I don’t see much of any opportunity for input,” he said.
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“At first glance, this looks like a vigorous communication plan with lots of opportunities for the 1,400 retirees affected to attend sessions and interact with CPS management,” Steen said. “However, on closer examination, it appears that there’s been little to no opportunity for those impacted to have input.”
Retirees, like Dawn “Patti” Benitez, who spoke at the last two meetings, have continued to show up each month to comment in opposition to the change.
“Many in this group of retirees are very elderly and are unable to make an informed decision,” Benitez said.
Former benefits manager Deborah Henrich echoed that sentiment, saying the change would impact some of the most vulnerable retirees, many of whom relied on an interpreter to complete their retirement process.
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Trustee Willis Mackey, who turned 65 earlier in the year, said he understood the difficulty of navigating a new health plan and asked to review and have the letter from the former CEO added to the record.
“Have we ever thought about honoring that for the retirees?” Mackey asked. “Being a retiree and turning 65 is trauma.”
He added: “I can understand and relate to what they’re going through. When you turn 65, you all are going to see. It’s chaos.”
Contemplating choice
Being given an opportunity to weigh in or have a choice about new vs. old is what’s been missing, retirees told the board.
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“The key point here is choice,” Henrich said.
While the retirees asked for the option to choose whether to be on the new or old plan, CEO and President Rudy Garza said moving everybody to the new plan was more efficient for management. The more people on the plan, the bigger the risk pool, he said, and that helps to maintain the value of the plan.
“I think it’s unreasonable to expect us to maintain multiple plans for different segments of retirees,” Garza said.
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The discussion ended with Romero asking a question that the Employee Benefits Oversight Committee will continue to evaluate, considering both the utility and the retirees’ perspective: “What would the world look like if this group of people had the choice?
The changes to the health plan are set to be implemented in January.
