Retiree Health Benefits Continue Shrinking Employee Benefit News (09/01) Vol. 15, No. 10 p.7; Ackermann, Matt
The Employee Benefits Research Institute (EBRI) has released a report that faults FAS 106 for the steady decline in retiree benefits. Established in 1990, the rule requires companies to accrue and expense future claims payments and actual paid claims as a way to encourage financial managers to limit expenses. In its report, EBRI asserts that FAS 106, combined with the rising cost of providing retiree benefits, may be the reason why many employers are starting to cut back on benefits.