Public Agencies To Report Future Retiree Benefit Costs
A new federal accounting rule will require public agencies to report the costs of future retiree health benefits using a 30-year timeline, NBC11.com reports.
Marian Mulkey of the California HealthCare Foundation said the new law will apply to all public agencies, ranging from school districts to city governments.
The new rule is intended to help agencies plan for future retiree health benefit costs, which are expected to increase because of longer life expectancy rates and rising health care costs, according to NBC11.com. Although the new rule requires government entities to disclose future retiree health benefits costs, it does not require them to fund such liabilities in any way (Favro, NBC11.com, 12/14).