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Published Monday, September 01, 2008

Now that most communities have valued and reported their employees' post-employment health care benefits, local officials are searching for ways to fund and reduce those liabilities. The employee benefits structure and work force demographics contribute to the development of an appropriate strategy. The first possibility is to do nothing about funding the liability and leave the problem to the next administration. However, that may result in a lower credit rating and place retired employees at risk because post-employment health care benefits are not guaranteed the way pensions are. Nevertheless, retiree benefit plans can be structured so that only ...

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