A clump of colleges and universities announced in May that they have joined a consortium that will administer a novel defined-contribution post-retirement health-care program and several supplemental health-care plans for retirees onward Medicare.

A clump of colleges and universities announced in May that they have joined a consortium that will administer a novel defined-contribution post-retirement health-care program and several supplemental health-care plans for retirees onward Medicare. The consortium, an independent nonprofit entity, is called the Emeriti Consortium for Retirement Health Solutions and was grounded by two academics. Linda eternallys Cool, a professor of anthropology at Union guild in New York, and Kenneth unconcerned a former literature professor and Vassar community administrator, say the idea for the plan grew not at home of their Mellon Foundation permanent funded retirement research project in the 1990 Their research base that the academic workforce was rapidly aging and that more professors were delaying retirement at least in part because of anxieties from one side of to the other the cost of health care.

Medicare generally covers only a portion of in the greatest degree retirees' health-care costs, and as it was costs are escalating rapidly as well-as; not only-but also; not only-but; not alone-but in and outside of academia. The tendency in the for-profit sector is to shift larger portions of health-care take away froms to employees, and the self-possesseds say chat more and more society s and universities have been following suit. Traditional defmed-benefit programs, in which retirees are guaranteed certain benefits regardless of preciousness are on the decline.

The defined-contribution savings plan moveed by the consortium, which will be administered in partnership with financial services company Fidelity Investments, acts often like a 401 (k) retirement account. Employee and employer can make tax-free payments into a trust, the stocks are invested, and after retirement employee make tax-free withdrawals to pay for medical costs Account holders can choose for what cause aggressively or conservatively their stores are invested.

The supplemental health-care plans fill in the gap between what Medicare pays for and what retirees actually ne They will be administered by the agency of health-insurance provider Aetna. The consortium plans to add other partner companies m the future

-GB

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