TAX 9873 Lecture Notes - Lecture 63: Flexible Spending Account, Pension, Copayment
Document Summary
Employees who meet age and service conditions at retirement are eligible for post- retirement benefits. Retirees receive continued coverage under the employer"s plan, normally with the same benefits as active employees. Retirees make after-tax contributions for their coverage (usually more than actives; pre- tax contributions are generally not feasible). Plan is secondary to medicare after medicare eligibility. This is for those that offer them^^ Similar to what active employees get (might be at a discount) If there is co-funding, there are ways to reduce taxes- hsa, hra, flexible spending account. For retirees because no longer employees, any co-payment is after tax. Usually secondary to medicare if eligible, depending on your age. The employer may reserve the right to terminate benefits (but they cannot be terminated after bankruptcy without court approval). The employer may fund its obligation through a welfare benefit trust or a 401(h) account in its pension plan.
