Keeping Promises New Solutions For Retirement Benefit Obligations
Retirement benefit obligations, such as Defined Benefit (DB) plans and retiree healthcare benefits, are straining the finances of employers. Many DB plan sponsors are making larger contributions to their plans to address sharp declines in plan funding levels and to provide liquidity to make benefit payments. At the same time, the cost of retiree healthcare obligations continues to grow due to the significant increase in healthcare costs over the last decade. Business leaders and finance executives are focused on ensuring that their companies have the financial resources to fulfill long-term benefit obligations, while maintaining the flexibility to conduct core business activities. Although this is not an easy balancing act, a growing number of solutions are available to help companies fulfill their benefit obligations.