Review of Unfunded Pension Costs of the Travelers Insurance Company

EXECUTIVE SUMMARY:

This final report presents the results of our review of the Travelers Insurance Company's (Travelers) unfunded pension costs as of January 1, 1991. Our review disclosed that Travelers had accumulated over $1.2 million in pension costs that are unallowable for Medicare reimbursement. Travelers made contributions to the pension trust fund from 1986 through 1990, however, during this period, Travelers did not fully fund the pension costs identifiable with its Medicare segment. By not fully funding pension costs, Travelers lost allowability of the costs under Medicare.

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