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.
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.