The strategic benefits of Emeriti’s Retirement Healthcare Savings Program
Increasingly, institutions are shifting to a defined contribution approach for retiree healthcare in much the same way they implemented defined contribution retirement plans years ago.
- Employers decide how much to contribute
- Costs are realized today, without future liabilities
- Reduce or eliminate defined benefit liabilities
MAXIMIZE BENEFIT VALUE
- Triple tax-free benefits
- Stretch benefits dollars by up to 50%.
- Reduce risk associated with end-of-career medical trend and healthcare utilization costs
DRIVE WORKFORCE MANAGEMENT
- Support recruitment and retention efforts
- Help employees reach retirement with adequate retiree healthcare savings
- Reduce concerns over losing employer coverage
Optimize your benefits
Emeriti’s powerful tax-saving strategies help enhance employees’ financial well-being in retirement and help you optimize the value of your retirement benefit spend.
EVALUATING YOUR OPTIONS
What do you need to consider when addressing retiree healthcare solutions?
Below are five factors for you to think about.
Understand your employee demographics and how they affect your organization
Retiree healthcare costs could be contributing to employees delaying retirement
DETERMINE RETIREMENT READINESS
Take a comprehensive look at retirement readiness
Participant retirement savings may not be accounting for out-of-pocket healthcare costs
RE-VISIT CURRENT BENEFITS
Re-visit your current retiree health benefits
Evaluate not just the financial impact of these solutions but also their effectiveness
TOTAL BENEFITS APPROACH
Take a total benefits approach to manage costs and deliver value to your employees
Taking a total benefits approach can help you minimize your liabilities while maximizing your total benefits spend
Cost savings in one benefits area could help fund new retiree healthcare solutions
Explore retiree healthcare solutions that meet your organization’s needs
Consider the cost, effectiveness, east of administration, and how the benefit may affect your workforce renewal strategy
Creating a total benefits solution
Addressing retiree health is a critical part of overall retirement planning. You can offer a smart, flexible and easy solution for employees – while helping to ensure that you are addressing key fiscal concerns at your institution.
RETIREMENT HEALTHCARE SAVINGS PROGRAM
- Triple tax-free savings for retiree health
- Convenient reimbursement for qualified medical expenses
- Optional group retiree health insurance, underwritten nationally by Aetna
- Ongoing retirement health planning support
SPECIAL PURPOSE MEDICAL INSURANCE PLAN
- Enhance retirement plan by providing benefits for select employees
- Provide transition funding to pay for medical premiums in retirement
Start the conversation
We are ready to help you discover how Emeriti's Retirement Healthcare Savings Program can work at your organization.
*Based on the results of a hypothetical illustration where $2,000/year was contributed into both a Retiree Health Care Account (RHCA) and a 403(b) plan for 30 years. The assets in both accounts grew at a 6% interest rate each year and this resulted in an after-tax total accumulation amount of $162,419 from the RHCA compared to $108,821 from a tax-advantaged retirement savings plan. This assumes a 33% tax rate. Individual rates will vary.