Using a 401(h) account to fund retiree health benefits from your pension plan.
If a health and welfare plan covering retirees faces financial shortfalls, administrators and trustees can fund retiree health benefit payments from a related pension plan that may be in better condition. This method is legal and ethical, but it requires sophisticated accounting techniques for creating an account that provides retiree members with promised benefits while meeting statutory and regulatory requirements.
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D000066:Accounting; D000368:Aged; D006264:Health Benefit Plans, Employee / Q000331:legislation & jurisprudence*; D006801:Humans; D007449:Investments / Q000191:economics*; D010415:Pensions; D012179:Retirement / Q000191:economics*; D012456:Salaries and Fringe Benefits; D019464:Tax Exemption; D014481:United States