Funding OPEB liabilities: what are your options?(Other Postemployment Benefits)(Cover Story)

The fulfillment of retiree pension and other benefit obligations has become a major concern globally in both the government and private sectors, driven in part by the demographic phenomenon of people living longer. In addition, life style choices have tended to lower the actual retirement age. These two factors have expanded the period during which pension benefits must be paid, resulting in burgeoning liabilities for employers. Adding to the problem has been the rapid increases in costs related to retiree health care. While state and local governments have been struggling to maintain adequate funding for pensions, buffeted not only by demographics but also by investment ...