KETTERING — Reynolds and Reynolds will end medical coverage and life insurance benefits to retirees age 65 and older effective Jan. 1, 2010.

On that date, the company — which sells management software products and programs to automobile dealerships — will no longer provide “health and welfare” benefits to retirees, surviving spouses and their dependents 65 and older. Those benefits include medical and prescription, dental, vision and life insurance, the company said.

“This only applies to those who are 65 and older — in other words, those already covered by Medicare,” said Thomas Schwartz, a spokesman for Reynolds, which is headquartered in a campus off County Line Road.

Schwartz said the company is working with independent employee benefits brokerage McGohan Brabender Senior Solutions of Moraine to assist retirees with the transition to Medicare.

A letter from the company dated Sept. 15 says the tough economy forced the change.

“We acknowledge that this change could impose a real hardship on retirees, surviving spouses and their dependents,” the letter from Reynolds says. “However, the company’s recognition of this hardship, which allowed Reynolds to continue these benefits in a more robust economic environment, regretfully does not support continuing these programs in the current economic environment.”

Ann Slakter, 71, who retired from Reynolds after working for the company for 12 years, was taken aback by the letter. The retiree, who now lives in Boynton Beach, Fla., pays $220 a month for the company’s medical, dental and vision coverage, she said.

Slakter said she knew that was a good retirement package. But on receiving the company’s letter, she added, “I was absolutely horrified, particularly since I really dedicated myself to the company when I worked there.”

“It’s pretty scary in today’s world,” she added.

She said the change will cost her and her husband, Ira, more money for supplementary insurance, but she didn’t know how much.

Reynolds and Reynolds has about 1,400 local employees. Schwartz couldn’t offer estimates of how many of its retirees still live in the area or elsewhere.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.