New LAO Retiree Health Benefits Report
|The LAO has released a new report this morning on Retiree Health Care: A Growing Cost For Government|
The key sentence is that "Costs for retiree health benefits have been rising rapidly-increasing faster than both inflation and the overall growth rate of government spending."
The report goes on to detail the unfunded liabilities in the state's retiree healthcare system: Our educated guess is that unfunded retiree health liabilities for state government will total in the range of $40 billion to $70 billion and perhaps more. (This is based on the results of other liability valuations.) The unfunded retiree health liability may exceed the combined unfunded liabilities of CalPERS’ and CalSTRS’ pension systems-which were $49 billion, as of June 30, 2004.
Below is a disturbing little graph from the report:
You can read the full report here