Complete Text of Report is available in PDF format (4.6 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.
EXECUTIVE SUMMARY:
The Transamerica Occidental Life Insurance Company (TOLIC) was a Medicare contractor until its contract was terminated in November 2000. Federal regulations and Medicare contract provisions require pension gains, which occur when a Medicare segment of a pension plan closes, be credited to the Medicare program. We identified approximately $20.2 million in excess Medicare pension assets at TOLIC at the time of contract termination. Our methodology and calculations were reviewed by the Centers for Medicare & Medicaid Services’ pension actuarial staff. We recommended that TOLIC remit the $20.2 million in excess pension assets to the Medicare program.