Colleges face rising retiree costs
It turns out that states, cities and towns are not the only ones feeling the pinch from rising benefit costs for retirees. A review by the Boston Globe finds that even wealthy private universities are feeling the pain, including Harvard and MIT.
According to the report, medical costs are the main culprit, with Harvard’s liability estimated to reach $1 billion next year. The university reportedly has less than one-third of the money set aside for medical liabilities. Yale University has a $1.1 billion pension liability, $700 million of which is funded.