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Fixing California's Retiree Health Care Underfunding
California Public Policy Center 
Nov. 1, 2012 "When OPEB is unfunded (which ... is the case in most California communities), costs in coming years are set to accelerate rapidly -- likely more rapidly than pension costs. When a worker retires and begins to draw benefits, his pension comes out of the pension fund, whereas his health benefits continue to come directly out of the operating budget. Thus, for as long as governments fund OPEB on a pay-as-you-go basis, they will experience the combined force of the baby-boom retirement wave and rising health-care costs. In a prefunded system, the effect is filtered." MORE >> |
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