But beyond committing the company to do its part in providing its retirees
with medical benefits, we also felt it behooved us--and it makes good sense from a corporate finance standpoint--to enhance the security of those benefits by prefunding them.
These concerns could prompt companies to reduce or terminate their retiree
health benefits, or require retirees
to pay more of plan costs.
The requirement also has served to increase interest in finding alternative methods of funding retiree
health benefits, emphasizing gradual funding during an employee's worklife rather than lump-sum funding as retirees
receive health care.
Today the group has its own T-shirt emblazoned on the front with "Chevron Retirees
Association Tree Planter," and, on the back, a picture of a seedling with exposed roots and the caption "Green End Up.
Of the 190 retirees
, 185 are white and five (5) are black data which, again, are indicative of hiring tendencies during 1963-1973.
Of those companies that have already decided to make strategy changes, more than 33 percent have moved forward with one that will direct post-65 retirees
to an exchange to secure individual market for coverage, oftentimes accompanied by a defined contribution subsidy.
For too long, limited options and high costs have burdened employers and retirees
The data show workers are still more likely to expect retiree
health benefits than retirees
are actually likely to have those benefits, but the expectations gap is closing," says EBRI Director Paul Fronstin, who co-authored the study.
expressed concern about maintaining the value of their savings and investments with inflation (58 percent of retirees
very or somewhat concerned, versus 71 percent of pre-retirees
But now the number of retirees
is growing exponentially, and employers are looking for valid options to sustain financial viability and provide choice to the retirees
who questioned this were told they could remain on the conventional plans that provided the same coverage.
Categories: Income Security, Accountability, Cost analysis, Employee medical benefits, Employee retirement plans, Federal employee retirement programs, Federal/state relations, Health care costs, Local governments, Pensions, Program management, Retirees
, Retirement, Retirement benefits, Retirement income, State employees, Statistical data, Strategic planning