SilverLink - Fall 2008 - (Page 22)

(identical to health beneﬁ ts), there should be no difference in funding between the two beneﬁ ts. • More Economical. Any funds set aside currently can be invested to generate earnings, which can then be used to pay for beneﬁts. In some cases, funds set aside in trusts can be invested to earn a higher return than funds set aside in the government’s general account. Paying or pre-funding now can dramatically reduce health costs over the long term. Securing the Promised Beneﬁts. Pre-funding creates a pool of assets, which can be used to pay for the future beneﬁts employees expect to receive. The assets accumulated will strengthen the governmental entity’s ability to provide beneﬁts for years to come. Higher Bond Ratings. For some governmental entities, bond rating agencies will monitor any liability associated with employee beneﬁts, such as pensions or retiree healthcare. These bond rating agencies do affect the interest rates paid on the governmental entity’s debt. Unfunded pension and retiree health liabilities are viewed as a form of debt and can be a negative consideration when an agency compares one governmental entity’s ﬁnancial strength against that of another. A retiree health beneﬁt is one of the most underappreciated beneﬁts given to an employee—until the employee retires and it becomes a necessity. The liability created by the retiree healthcare promise is signiﬁcant for most governmental entities and will increase due to the recent rise in healthcare costs and the large number of employees soon expected to retire. It is critical to strategize a solution that will begin to address these unfunded liabilities and reduce the costs imposed on future generations of taxpayers. The promise made to America’s workers must be kept. • • CONTACT MIKE EHMKE AT 402.96 4.5522 OR MEHMKE@ SSGI.COM 22

Table of Contents Feed for the Digital Edition of SilverLink - Fall 2008

SilverLink - Fall 2008 Table of Contents Risk Management: Toto A Marriage Made to Last Cashier’s Check Fraud? Selection Validation Digital Tool Box When the Curtain Falls Lightning Strikes Increased Fuel Economy Employee Benefits: To Infinity & Beyond Securing Retiree Healthcare Private Client Services: Batter Up! Shaking Things Up STOLI Under Attack Client Spotlight: Bellevue University Internal Happenings: SilverStone Group Wellness Activities Group

SilverLink - Fall 2008

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