PROVIDENCE – Webster Bank will now offer an alternative to defined benefit contribution plans aimed at helping retirees offset health care costs in retirement, according to a news release.
The Retiree Reimbursement Arrangement, offered through Webster’s HSA Bank division, lets employers contribute untaxed money that is also tax-deductible for retirees to use on Medicare premiums and other qualified medical expenses. Compared to more traditional defined-benefit plans, RRAs can be more predictable and cost-effective, the release stated.
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The new offering comes after a recent survey by the HSA Bank, which found that 93% of consumers older than 55 are worried about current and future medical bills, yet more than a third of them are saving for those expenses.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
