For many firms, the liability for the underfunded health care obligation exceeds the liability for underfunded pensions.

Question

Quizplus · Accepted Answer

This is because the cost of healthcare has been rising at a faster rate than the cost of pensions. Additionally, many companies have been reducing or eliminating pension plans, while still offering health benefits. Therefore, the liability for underfunded healthcare obligations can be larger than the liability for underfunded pensions.

For Many Firms, the Liability for the Underfunded Health Care