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They pre-funded it assuming a given life expectancy and per-year healthcare costs. People started living past that life expectancy and healthcare costs rose mu
by ETHisso2017 7y ago
They pre-funded it assuming a given life expectancy and per-year healthcare costs. People started living past that life expectancy and healthcare costs rose much more quickly than expected...
- vkou 7y agoWhat do per-year healthcare costs have to do with an underfunded pension? Was one of the benefits of the pension a healthcare plan? The article doesn't say that it was. If it was, though, that is pants-on-head stupid. A pension is supposed to be a fixed payment investment, not a variable-payment one.
- lotsofpulp 7y agoThey're separate benefits and don't have to do with one another. Retiree healthcare is a rare benefit in the non government world, and is usually classified as OPEB (other post employment benefit).