PBG » Topics » Health Care Cost Trend Rates

This excerpt taken from the PBG 8-K filed Sep 16, 2009.
Health Care Cost Trend Rates – We have assumed an average increase of 8.75 percent in 2009 in the cost of postretirement medical benefits for employees who retired before cost sharing was introduced. This average increase is then projected to decline gradually to five percent in 2015 and thereafter.
 
Assumed health care cost trend rates have an impact on the amounts reported for postretirement medical plans. A one-percentage point change in assumed health care costs would have the following impact:
 
                 
    1% Increase     1% Decrease  
Effect on total fiscal year 2008 service and interest cost components
  $     $  
Effect on total fiscal year 2008 postretirement benefit obligation
  $ 6     $ (5 )
                 
 
These excerpts taken from the PBG 10-K filed Feb 20, 2009.
Health Care Cost Trend Rates – We have assumed an average increase of 8.75 percent in 2009 in the cost of postretirement medical benefits for employees who retired before cost sharing was introduced. This average increase is then projected to decline gradually to five percent in 2015 and thereafter.
 
Assumed health care cost trend rates have an impact on the amounts reported for postretirement medical plans. A one-percentage point change in assumed health care costs would have the following impact:
 
                 
    1% Increase     1% Decrease  
Effect on total fiscal year 2008 service and interest cost components
  $     $  
Effect on total fiscal year 2008 postretirement benefit obligation
  $ 6     $ (5 )
                 
 
Health Care Cost Trend
Rates
 – We have assumed an average increase
of 8.75 percent in 2009 in the cost of postretirement
medical benefits for employees who retired before cost sharing
was introduced. This average increase is then projected to
decline gradually to five percent in 2015 and thereafter.


 



Assumed health care cost trend rates have an impact on the
amounts reported for postretirement medical plans. A
one-percentage point change in assumed health care costs would
have the following impact:


 


























































                 

 

 

1% Increase

 

 

1% Decrease

 


Effect on total fiscal year 2008 service and interest cost
components


 

$



 

 

$



 


Effect on total fiscal year 2008 postretirement benefit
obligation


 

$

6

 

 

$

(5

)

 

 

 

 

 

 

 

 

 






 



These excerpts taken from the PBG 10-K filed Feb 27, 2008.
Health Care Cost Trend Rates  We have assumed an average increase of 9.5 percent in 2008 in the cost of postretirement medical benefits for employees who retired before cost sharing was introduced. This average increase is then projected to decline gradually to five percent in 2015 and thereafter.
 
Assumed health care cost trend rates have an impact on the amounts reported for postretirement medical plans. A one-percentage point change in assumed health care costs would have the following impact:
 
               
    1% Increase   1% Decrease  
Effect on total fiscal year 2007 service and interest cost components
  $ 1   $ (1 )*
Effect on the fiscal year 2007 postretirement benefit obligation
  $ 5   $ (4 )
               
* Impact was slightly less than $0.5 million.
 
Health Care Cost Trend Rates
 We
have assumed an average increase of 9.5 percent in 2008 in
the cost of postretirement medical benefits for employees who
retired before cost sharing was introduced. This average
increase is then projected to decline gradually to five percent
in 2015 and thereafter.


 



Assumed health care cost trend rates have an impact on the
amounts reported for postretirement medical plans. A
one-percentage point change in assumed health care costs would
have the following impact:


 





















































               

 

 

1% Increase

 

1% Decrease

 


Effect on total fiscal year 2007 service and interest cost
components


 

$

1

 

$

(1

)*


Effect on the fiscal year 2007 postretirement benefit obligation


 

$

5

 

$

(4

)

 

 

 

 

 

 

 

 























*

Impact was slightly less than
$0.5 million.


 



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