Retirees Take A Nasty Blow
Forget about retiring with all-expenses-paid health care from your employer. About 65% of U.S. companies have altered retiree health insurance plans during the past two years, or will do so by 1993, says a new survey by benefits consultant A. Foster Higgins & Co. Most of them are sharply reducing benefits by asking retirees to pay more of the costs. Some companies are eliminating the plans altogether.
Blame soaring medical expenses and an accounting rule, due to take effect next year, that requires companies to post long-term retiree medical benefits as liabilities on their balance sheets.