10.19030/jabr.v16i4.2057">
 

Title

Retirement plans for small business owners

Document Type

Article

Publication Date

2014

Department

Accounting and Finance

Abstract

Are companies right in cutting retiree medical benefits? Although many cite a 1993 accounting rule as the reason, the author mostly blames rising health care costs and an increase in expected retirees. He reviews the methods companies have used to cut benefits, and analyzes whether it was really profitable--or prudent. Some conclusions: To avoid public relations and legal problems, the author suggests cutting benefits for future--not current--retirees. And if you want to improve your firm's financial statements, consider setting up a voluntary employee benefits trust (VEBA). (C) 1999 John Wiley & Sons, Inc.