Report Says California Faces Huge Liability For Retiree Health Costs
Sacramento, CA — A state analysis released Friday says California´s costs for funding health care for retirees have more than tripled in the past decade.
The growing costs, expected to reach $1.6 billion by 2010, are of particular concern as the baby boomer generation retires over the next decade.
State leaders also have to contend with new government accounting rules that take effect next year. California currently funds retiree health costs on a pay-as-you-go basis.
But under the new rules, governments also will have to budget for the total amount of health costs that the state is liable for, which includes all the benefits earned by current and past state employees.