Friday, February 1, 2013

Retiree Health Care: Biggest Retirement Bill Coming Due

According to a report from Pew Center on the States on pension and retiree health care funding in 61 cities-the most populous one in each state plus all others with populations over 500,000, the cities had set aside just 6 percent of $126.2 billion in projected costs for what are known as Other Post-Employment Benefits, primarily retiree health care, leaving $118.2 billion in unfunded liabilities in fiscal year 2009.

Los Angeles led the 61 cities with 55 percent of its retiree health care promises pre-funded in fiscal year 2009. Next were Denver (51 percent); Washington, D.C. (49 percent); Louisville (40 percent); Sioux Falls (37 percent); and San Antonio (31 percent).

Some cities have begun tackling their retiree health care liabilities by pre-funding a portion of their expenses. Of the 27 cities with some assets set aside, five contributed more than 90 percent of the annual sums recommended by their actuaries in both fiscal years 2009 and 2010: Anchorage, Charlotte, Los Angeles, Sioux Falls, and Virginia Beach. Eight contributed more than half of their full annual payments in both years, and 14 contributed less than half.

Source: Pew Center on the States
http://www.pewstates.org/research/reports/a-widening-gap-in-cities-85899442341?p=1 

No comments:

Post a Comment