Review of Unfunded Pension Costs of Blue Cross and Blue Shield of New Mexico

EXECUTIVE SUMMARY:

This final report provides the results of our review of Unfunded Pension Costs of Blue Cross and Blue Shield of New Mexico (New Mexico)for Plan Years 1986 through 1988. Contributions were not made to the pension trust fund for Plan Years 1986 and 1988. Accordingly, New Mexico did not fund the pension costs identifiable with its Medicare segment during this period. As a result, New Mexico accumulated unfunded pension costs of $31,372 as of January 1, 1989. New Mexico must separately identify and eliminate this amount from the amortization components of future pension costs.