Review of Unfunded Pension Costs of Blue Cross and Blue Shield of Oregon

This final report provides the results of our review of Unfunded Pension Costs of Blue Cross and Blue Shield of Oregon (Oregon). Oregon did not make contributions to the pension trust fund for Plan Years 1988 through 1990. Accordingly, Oregon did not fund the pension costs identifiable with its Medicare segment during this period. As a result, Oregon accumulated unfunded pension costs of $260,335 as of January 1, 1995. Oregon must separately identify and eliminate this amount from the amortization components of future pension costs. Oregon agreed that there are accumulated unfunded pension costs of $260,335 as of January 1, 1995.