SFAS No. 106 and Benefit Reductions in Employer-Sponsored Retiree Health Care Plans.

Key Points

• The research aims to understand the factors that influence firms' decisions to reduce retiree health care benefits.
• Analysis of financial reporting impacts of SFAS No. 106
• Examination of firm-specific retiree health care cost changes
• Investigation of financial weaknesses independent of SFAS No. 106
• Increased contracting costs are linked to SFAS No. 106 consequences.
• Firms show varied responses to financial weaknesses regarding health benefits.
• Specific changes in retiree health care costs influence benefit reductions.