Post retirement medical benefits
Helping you to mitigate long-term health benefit costs
Post retirement medical benefit schemes were a popular benefit in the 1970s and 80s but have since fallen out of favour due to their rising cost base. As more people live longer and survive critical illnesses thanks to expensive new drugs, so medical costs and premiums have been on the steady ascendant.
If you still run any such schemes, you will need to disclose their cost each year in your organisation’s accounts.
As well as providing annual accounting disclosures, we can also advise on the key factors you need to consider when estimating the future cost of post retirement benefits such as long term medical cost escalation, the impact of ageing on medical costs and life expectancy.
We can also help you to mitigate long-term costs by advising on:
- buy-out: how to get the best buy out terms for the scheme from the wider insurance market
- settlement: how to negotiate an attractive lump sum exit settlement offer
- plan design change: how to enhance long term scheme sustainability through subtle changes in benefit provision