Mr. Klein worked closely with the City Actuary and the City Comptroller's Office to implement new accounting standard requiring the estimation of the City's long term
liability for retiree health care costs (OPEB).
That agreement calls for phasing in payroll
deductions for retiree health care over several years, extending the period to qualify for retiree health benefits and reducing the state's subsidy for health insurance.
calls for phasing in payroll deductions
for retiree health care over several years, extending the period to qualify for retiree health benefits and reducing the state's subsidy for health insurance.
One further sweetener: Those older than 55 with at least 10 years of service who take the offer are eligible
for the Retiree Health Care plan, a program that Tribune says will accept no new enrollees after Dec. 31.
LA Unified projects that the unfunded liability
for retiree health care benefits is $ 13.6 billion, and district staff has warned year after year that the district must start paying down that debt, but to no avail.
Looming in the background: The state, its localities and public authorities combined have amassed nearly $ 250 billion in unfunded
liabilities for retiree health care, as documented in a report issued last Wednesday by the Manhattan Institute's Empire Center, the nonprofit think tank for which I work.
That the city might still end up in bankruptcy after three months of negotiations is not surprising when you consider its extreme fiscal plight, including some $ 400 million in unfunded liabilities
for retiree health care.