Global professional services company Towers Watson has unveiled its Longitude Solution for retiree medical exit, designed to allow US employers to overcome the traditional barriers to exiting their legal, accounting and regulatory responsibilities for retiree medical benefits.
Using customized group annuities and an innovative transaction structure, the patent-pending solution will also offer retirees security and peace of mind, as the annuity guarantees tax-free funding for medical benefits from a rated insurance company.
Towers Watson CEO John Haley said, "Over two years, Towers Watson has worked with the nation’s foremost legal, accounting and tax experts to develop a retiree medical exit that is tax-favorable to sponsors."
Towers Watson Retiree Insurance Solutions managing director Mitchell Cole added, "To our knowledge, Longitude Solution is the first-ever retiree medical exit solution that creates economic value for both companies and their retirees."
Employers can select a life insurer from a list of Towers Watson’s preferred partners for the group annuity portion of the solution and the company then guides employers through a streamlined RFP process with transparent pricing.
Longitude Solution has been made available for existing and prospective clients of the Towers Watson OneExchange private Medicare exchange.