Retiree eligibility

[Guest ned strain]

What are other employers requiring for pre-65 retirees' continuance under health plans? Any employer contribution?

Thanks

Ned Strain

National YMCA Employee Benefits Plan

[KIP KRAUS]

We currently allow employees who retire early (by age 53 or higher) to continue coverage until age 65 at whatever the active employee’s pay for coverage. I have worked other places where we did the same thing.

[Mary C]

We use a defined contribution approach where the company contributes $x for each year of service toward the cost of the retiree's coverage. The retiree pays the difference, if any, between the company's contribution and the full premium and pays the full premium for any dependent's coverage.

[Sandra Pearce]

Employees retiring age 55 and up may continue health coverage at a rate that is considerably less that our COBRA rate but approximately two times our active employee rate. Stock-held companies considering adding retiree benefits need to be aware of the FAS 106 liabilities.