ERIC Number: EJ772131
Record Type: Journal
Publication Date: 2006
Pages: 8
Abstractor: ERIC
ISBN: N/A
ISSN: ISSN-0009-1383
EISSN: N/A
The Future Train Wreck: Paying for Medical Costs for Higher Education's Retirees
Biggs, John H.
Change: The Magazine of Higher Learning, v38 n6 p8-15 Nov-Dec 2006
Trustees and administrators today confront one of two problems with post-retirement medical care. First, if institutions provide no support for their retirees' medical care, they implicitly offer a powerful incentive for senior faculty to stay on. The compensation and opportunity costs of this effect are obviously very high. But, second, if they have in place a defined-benefit plan for post-retirement medical care, they are imposing on future generations an enormous obligation that will almost certainly be deemed irresponsible in hindsight. In either case, a train wreck is in sight. However, solutions for the problem do exist and should be taken advantage of now. Emeriti Retirement Health Solutions offers one possible solution for nonprofit colleges and universities, public or private, large or small; Health Saving Accounts (HSAs) are another. With all defined-contribution plans, acting early helps enormously, since compound interest on early accumulations offers the advantage of exponential growth to offset a similarly growing obligation. (Contains 2 tables, 5 resources, and 1 chart.)
Descriptors: Medical Services, Costs, Medical Education, College Faculty, Higher Education, Retirement Benefits, Teacher Retirement, Health Insurance
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Publication Type: Journal Articles; Reports - Descriptive
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A