Defined Contribution Solutions

A Sustainable Solution

Increasingly, institutions are shifting to a defined contribution approach to retiree healthcare in much the same way they implemented defined contribution retirement plans many years ago.

Through your retirement plan, you help employees address the issue of income security, which is one part of the retirement readiness equation. by adding a defined contribution retiree healthcare plan, you can help them address the second part, healthcare security, while you manage your institution’s total compensation budget and address looming workforce management issues. Employees who feel more confident about their financial futures may retire at normal retirement age rather than delaying retirement to maintain coverage under their employer’s group health plan.

A gradual transition from a defined benefit to a defined contribution approach could reduce and potentially eliminate FASB and GASB liabilities.

A defined contribution program for retirement healthcare is an ideal complement to your employer- sponsored retirement plan.

These plans offer different advantages and, taken together, can help provide a more comprehensive approach to help prepare for your employees’ retirement years.

Emeriti offers one of the most tax efficient ways for employers to address retiree health.

An employer sponsored Emeriti retirement health plan provides a triple tax free way for employees to prepare for medical costs in the future. It works in tandem with an institution’s retirement plan to drive better retirement plan outcomes by addressing both health and financial well-being.


A fully funded defined contribution plan can help solve employer and employee challenges

A defined contribution plan helps plan sponsors manage their total compensation budget, address workforce management issues, remove medical-trend and longevity risks from the active pool, and reduce future liabilities associated with any legacy defined benefit promises.

Emeriti’s defined contribution plans offer several advantages:

  1. Integrate with the institution’s retirement plan
  2. Strengthen fiscal control over the benefit commitment
  3. Facilitate workforce management goals
  4. Address healthcare security in retirement for employees