Winnebago Ind. is ending its remaining post-retirement health care benefits for all participants, the company said Friday (Jan. 13) in a filing with the U.S. Securities and Exchange Commission.
Sherwood Daily reports that the RV maker said at the start of the new year, any retiree from the company under the age of 65 will have their post-retirement health care benefits discontinued. The company said ending the benefits, which collect to around $6 million along with a tax asset of $2.3 million, will end all liabilities of the benefits.
Ending the benefits will result “in a significant acceleration of amortization of post-retirement prior service benefits, net of actuarial losses reducing operating expenses in the first two quarters of Fiscal 2017,” the company said. The company said that income from health care benefits is expected to grow to $24.4 million in the fiscal year 2017 versus $6.1 million in fiscal 2016.