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Financing Retiree Health Care: Assessing GASB 45 Estimates of Liabilities
Date:7/29/2008

New Center for Excellence Issue Brief

WASHINGTON, July 29 /PRNewswire-USNewswire/ -- The Center for State and Local Government Excellence has issued its second issue brief on retiree health benefits, Financing Retiree Health Care: Assessing GASB 45 Estimates of Liabilities. The brief, which was written by Robert L. Clark, professor of economics and management, innovation, and entrepreneurship in the College of Management, North Carolina State University, analyzes the key assumptions actuaries use to estimate a government's retiree health costs.

State and local government employers are faced with a number of uncertainties about the future of health care in the United States as well as in their own organizations. They must factor in variables including health care plan design, demographic factors, and financing methods.

Financing Retiree Health Care examines some of the broad questions that will affect future costs.

-- Will health insurance costs continue to rise faster than other public expenditures?

-- Will employers make changes in their health plans or the eligibility criteria for retiree health benefits?

-- Will employers make changes in the way they pay for their unfunded health care liabilities?

-- What impact would the establishment of a trust fund have on unfunded liabilities?

-- What changes in Medicare or national health policy will occur?

For a copy of the full brief visit http://tinyurl.com/5j7rsk

About the Center for State and Local Government Excellence

The Center for State and Local Government Excellence helps state and local governments become knowledgeable and competitive employers so they can attract and retain a talented and committed workforce. The Center identifies best practices and conducts research on competitive employment practices, workforce development, pensions, retiree health security, and financial planning. The Center also brings state and local leaders together with respected researchers and features the latest demographic data on the aging workforce, research studies, and news on health care, recruitment, and succession planning on its website, http://www.slge.org.


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SOURCE Center for State and Local Government Excellence
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