Has the death knell sounded for post-retirement benefits?

As costs rise and Canadians live longer, plan sponsors consider eliminating health-care benefits for retirees
By Jason Kolysher
|Canadian HR Reporter|Last Updated: 09/14/2006

A wave of converging factors is crashing down on employers, forcing them to consider the viability of continuing to offer health-care benefits to retirees. Five years ago, accounting rules were changed to require Canadian organizations to include the accrued cost of post-retirement benefits for both retirees and current employees on financial statements. Since then, increased longevity, escalating health-care costs, government cutbacks and expensive new drugs have all contributed to the economic crunch.

The rapidly rising cost of health care is the primary reason some employers do not offer post-retirement benefits, according to Hewitt’s 2004

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