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DOD Retiree Health Benefits Liability: Evaluation of DOD's Sensitivity Analysis

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Report Type Reports and Testimonies
Report Date Oct. 31, 2000
Report No. GAO-01-164R
Subject
Summary:

GAO worked with the Department of Defense (DOD) to develop and report a reliable estimate for the postemployment health care benefits due to military retirees, their dependents, and survivors. To accomplish this, the DOD Office of Actuary has contracted with a private sector firm of actuaries and consultants, Milliman & Robertson. This report provides a non-technical summary of the contractor's findings and includes GAO's recommendation that the changes discussed in the reports be implemented. GAO found that although the analysis prepared by the Office of Actuary does a good job of identifying the factors that affect the military postretirement health care benefits liability and of evaluating the possible impact of those factors, issues still need to be addressed. An additional break out of information is needed in some areas in order for the Office of Actuary to properly analyze their impact on liability. The methodology used was generally reasonable, but some deficiencies still remained.

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