Monday, March 5, 2012

Our views: ; We're to fund benefits that aren't promised?; $10 billion in liabilities means state benefits cannot expand

ABSENTEEISM plagued state government in the 1980s. Rather thandiscipline abusers, the Legislature offered state workers incentives- pension credits or free health insurance upon retirement - not toabuse sick leave.

State taxpayers are now on the hook for $10 billion in unfundedliabilities for Other Post Employment Benefits, mainly healthinsurance.

Belatedly, state leaders made changes. Employees hired as of July1, 2010, were told not to expect health insurance from taxpayerswhen they retire.

The finance board of the Public Employees Insurance Agency votedin December to cap state contributions to other employees andretirees at the current level, …

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