NEW YORK, NY--(Marketwired - Apr 4, 2013) - Changes in recent accounting rules have left municipalities, universities, hospitals and other government entities highly exposed and dramatically under-funded. INSCOR, Inc. (PINKSHEETS: IOGA) seems to have a solution for part of what some are conservatively estimating to be $1.5-trillion in unfunded liabilities.

Without getting too bogged down in the minutia that is accounting rules, employee retirement benefit plans and insurance policies -- let's just say the solution that INSCOR offers deals with all three. The solution borrows from plans used for years by large corporations and banks, but improves on the design by eliminating much of the out-of-pocket costs to fund the solutions.

While others were in a daze with mouth agape over such a daunting financial crisis looming, INSCOR executives went to work, collaborating with actuaries and other financial institutions, to design a plan specifically tailored to meet the approaching problem with funding post-employment (retiree) benefit plans. You know those benefits that employers add to sweeten your employment package in order to attract a better workforce like retiree healthcare benefits, vision, dental, prescription drugs and even life insurance.

The problem is this: for years employees have been working with the expectation that they will get all of these great benefits when they retire, but the management and funding of those plans known as Other Post-Employment Benefits (OPEB) fell under accounting rules that allowed municipalities and other public entities to use "pay-as-you-go" accounting -- long story short the promise of future benefits was made but the money was never set aside. In just about every case, the plans have not been prefunded for those employees who retire. Instead, these government entities have waited until an employee retires and then uses a cash or pay-as-you-go system paying medical costs or premiums as they are incurred by current retirees.

Well, new accounting rules issued by the Governmental Accounting Standards Board (GASB) aren't so generous.

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