Providing retiree health care is more difficult than ever. Contributing factors include: new GASB rules, pressure to lower assumed rates of return, and the ever rising cost of health care and longer lifespans. As a result, the percentage of public sector employers who provide these benefits is shrinking. Five years ago, 83% of state and local governments provided retiree health care coverage; today it’s just 68%.
In this episode of Eye on 65, Marianne and John share the seven-question stress test that can be used to determine if your retiree health care program is built to last. From rising OPEB liabilities to shrinking solvency periods, and issues recruiting and retaining employees for key jobs — answering “yes” to just a few of the questions on the test means your program could be in trouble.
Listen to the full episode below. You can also subscribe on Apple Podcasts or bookmark the "Eye on 65" page. More information for public sector plan sponsors can be found on the Willis Towers Watson website.