Future World

Employers who offer post-retirement health care
must endure escalating retiree costs and significantly increased FAS liabilities. Given longer life expectancies, plus new and costly drugs, diagnostic tools, and treatments, there is absolutely no relief in sight.

Services At a Glance

Addressing Your Retiree Issues

Strategic Planning Associates has found that an
effective post-retirement strategy requires more
than simply modifying your plan design. Complex
regulatory and financial considerations are making
post-retirement benefits increasingly difficult for
private employers to maintain. Soon, even
governments will be subject to accounting standards
that may ultimately mark the end of such programs.

The traditional approach – "capping" post-retirement
benefits – addresses immediate accounting concerns,
but is not a realistic solution. Over time, as retiree costs continue to increase disproportionately, the capped benefit will become meaningless. Retiree health care will be prohibitively expensive – making early retirement a less attractive, if not altogether unattainable, option.

In our experience, the major post-retirement benefit challenges are cultural. Employees and retirees may not understand the regulatory, accounting, and social complications that make
these benefits so hard to continue. There are solutions, but they all require changes in
employee expectations and involvement. Only Strategic Planning Associates, with our
interactive, consensus-building approach, can ensure that culture change is integrated
with your post-retirement benefit strategy.

To learn more about how we can help your organization with its post-retirement needs, contact us at info@strategicplanningassociates.com