Retiree medical benefits: Making the fund or finance decision

This article discusses the differences between funding and financing of retiree medical benefits. It also describes various employer‐provided arrangements that are used for funding or financing retiree medical benefits, and the types of employers for which each vehicle might be appropriate. Several...

Full description

Saved in:
Bibliographic Details
Published inThe Journal of corporate accounting & finance Vol. 3; no. 3; pp. 285 - 301
Main Authors Kra, Ethan E., Bader, William A.
Format Journal Article
LanguageEnglish
Published New York Wiley Subscription Services, Inc., A Wiley Company 01.03.1992
Wiley Periodicals Inc
Subjects
FASB statements
Financial accounting standards
Retirement benefits
SFAS 106
United States > US
Online AccessGet full text

Cover

More Information
Summary:This article discusses the differences between funding and financing of retiree medical benefits. It also describes various employer‐provided arrangements that are used for funding or financing retiree medical benefits, and the types of employers for which each vehicle might be appropriate. Several issues will be discussed with respect to each vehicle, including: the ability of the employer to take a tax deduction; the applicability of any nondiscrimination rules; and the applicability of income tax on investment income and on receipt of benefits. The criteria for making a decision on whether to utilize a funding or financing vehicle will also be addressed.
Bibliography:istex:94DEF9372E1C76ECA5491611AE2655E543F919C4
ark:/67375/WNG-SMCPDJ88-F
ArticleID:JCAF3970030304
J.D., C.P.A., is an associate with the same firm; both are in the firm's New York City office.
F.S.A., is a managing director of William M. Mercer Inc.
ISSN:1044-8136
1097-0053
DOI:10.1002/jcaf.3970030304