Most large employers consider retiree medical benefits an expensive obligation with little strategic value. The benefits do not engage or attract new talent, yet they create balance sheet volatility and income statement expense, and divert management time. Employers have continued to offer these benefits because they’ve had no reasonable alternative.
Longitude Retiree Medical Exit Strategy Infographic — Download PDF
Now they do.
Towers Watson’s proprietary Longitude Solution is a turnkey retiree medical exit solution that leverages a customized group annuity, issued by a highly rated insurance company, that transfers the obligation to pay retiree health benefits from the corporate sponsor to the insurer.
The patent-pending solution lets employers overcome the traditional barriers to fully exiting their legal, accounting and regulatory responsibilities for retiree medical benefits. Our Longitude Solution also gives retirees security and peace of mind by guaranteeing nontaxable funding for medical benefits for the rest of their lives from a highly rated insurance company.
The solution is available to employers that are considering a retiree medical exit strategy or clients of Towers Watson’s OneExchange private Medicare exchange, which supports and administers the Longitude Annuity solution. This means that both the employer and retirees can expect a seamless transition and efficient administration.