Liabilities declined last year largely because the discount rate used to value obligations went up along with interest rates, according to the report. However, lower interest rates this year, combined with longer lifespans, could drive liabilities back up.
Many companies’ retiree medical benefit plans have been closed to new workers, and only half of the companies studied by benefits adviser Towers Watson & Co. continue carrying retiree medical liabilities on their balance sheets, according to the report.
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