Retiree Health Benefits

Retiree health benefits represent a highly valued benefit for retirees, but often place significant strains on budgets and balance sheets.  Many corporations, municipalities and other institutions struggle to bring down cash costs, OPEB liabilities and ARC payments while still keeping the promises they have made to retirees and employees.  By developing expertise in plan design options, Federal subsidy programs and identifying the most efficient Medicare plan providers, KTP has helped clients reduce their costs and cost trends well below national averages.

The impact of our work has been to help clients reduce their costs and their OPEB liabilities, without cutting benefits or shifting cost onto plan participants.  Because OPEB accounting requires plan sponsors to recognize the accrued liability for benefits earned in prior periods and make contributions to amortize this liability over time, reducing the OPEB liability has a significant positive impact on both the budget and balance sheet.

KTP’s approach to cost and liability reduction has helped its clients keep the vital promises they have made to their stakeholders, including retirees.