Employee Benefits:
Companies' Retiree Health Liabilities Large, Advance Funding Costly
HRD-89-51: Published: Jun 14, 1989. Publicly Released: Jun 14, 1989.
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Pursuant to a congressional request, GAO reviewed U.S. companies' liabilities for retiree health benefits.
GAO found that: (1) as of 1988, U.S. companies had total liabilities of $402 billion for retiree health benefits, of which $227 billion, or about one-fourteenth of the value of all companies' stocks in 1988, was accrued and $175 billion was anticipated; (2) most companies did not fund health benefit liabilities in advance; (3) advance funding would stabilize companies' annual expenditures and make benefits more secure, but would be very costly; (4) by 1992, the Financial Accounting Standards Board (FASB) plans to require companies to report on their financial statements the present value of their liabilities for future retiree health benefits; (5) because of rising retiree health costs and the proposed FASB reporting standards, many companies are increasingly changing their health plans to shift costs to retirees and reduce benefits; (6) many companies believe that they have the right to modify or terminate benefits for active workers and retirees and have language in their plans reserving that right; (7) recent legislation generally prohibits companies that file for bankruptcy from changing or terminating retiree health plans; and (8) Congress may wish to protect retirees' health care coverage by requiring employers to advance-fund such benefits or provide coverage that retirees can buy at group rates.
Feb 24, 2021
Financial Services:
Fair Lending, Access, and Retirement SecurityGAO-21-399T: Published: Feb 24, 2021. Publicly Released: Feb 24, 2021.
Jan 19, 2021
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Elder Justice:
HHS Could Do More to Encourage State Reporting on the Costs of Financial ExploitationGAO-21-90: Published: Dec 18, 2020. Publicly Released: Jan 19, 2021.
Oct 30, 2020
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Retirement Security:
Other Countries' Experiences with Caregiver PoliciesGAO-20-623: Published: Sep 30, 2020. Publicly Released: Oct 30, 2020.
Sep 24, 2020
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Retirement Security:
Older Women Report Facing a Financially Uncertain FutureGAO-20-718T: Published: Sep 24, 2020. Publicly Released: Sep 24, 2020.
Aug 28, 2020
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Retirement Security:
DOL Could Better Inform Divorcing Parties About Dividing SavingsGAO-20-541: Published: Jul 31, 2020. Publicly Released: Aug 28, 2020.
Aug 13, 2020
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Retirement Security:
Older Women Report Facing a Financially Uncertain FutureGAO-20-435: Published: Jul 14, 2020. Publicly Released: Aug 13, 2020.
Jun 16, 2020
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Retirement Security:
BLS Should Explore Ways to Improve the Accuracy, Timeliness, and Relevance of Its Cost-of-Living MeasurementsGAO-20-422: Published: Jun 16, 2020. Publicly Released: Jun 16, 2020.
Feb 27, 2020
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Private Pensions:
IRS and DOL Should Strengthen Oversight of Executive Retirement PlansGAO-20-70: Published: Jan 28, 2020. Publicly Released: Feb 27, 2020.
Jan 9, 2020
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Social Security Disability:
Action Needed to Help Agency Staff Understand and Follow Policies Related to Prescription Opioid MisuseGAO-20-120: Published: Jan 9, 2020. Publicly Released: Jan 9, 2020.
Dec 18, 2019
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Capitol Police:
Potential Effects of Raising the Mandatory Retirement AgeGAO-20-137R: Published: Dec 18, 2019. Publicly Released: Dec 18, 2019.
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