Future Security of Retirees Health Benefits in Question

T-HRD-88-30: Published: Sep 15, 1988. Publicly Released: Sep 15, 1988.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed private-sector health care benefits for retirees and changes implemented or currently being considered. GAO estimated health benefit costs and future liabilities, and found that: (1) the present future value of future retiree health benefits was about $402 billion, including liabilities of $93 billion for retirees, $128 billion for active workers' past service, and $181 billion for benefits workers will earn before retirement; (2) annual benefit payments for retirees would increase from about $10 billion in 1988 to approximately $25 billion by the year 2008; and (3) if employers began advance-funding health benefit liabilities, they would pay about $34 billion. GAO also found that a number of companies it surveyed: (1) modified their health plan provisions and increased employee and retiree contributions to control costs; and (2) expressed concern about their ability to continue to pay for retiree health care benefits. GAO believes that Congress may wish to require employers to: (1) offer retirees group rates for health coverage; and (2) advance-fund their retiree health liabilities on a voluntary basis.

Oct 1, 2018

Jun 4, 2018

May 22, 2018

May 21, 2018

May 17, 2018

Mar 7, 2018

Mar 5, 2018

Feb 21, 2018

Jan 8, 2018

Looking for more? Browse all our products here