Court Tells Sacramento County To Pay $2M in Retiree Health Benefits
A recent court decision might oblige Sacramento County to pay as much as $2 million in back payments to restore health insurance subsidies for retired county workers, the Sacramento Bee reports.
In 2007, budget shortfalls prompted Sacramento County's Board of Supervisors to eliminate the health insurance subsidy for public workers who retired after June 1, 2007. The subsidy provided as much as $244 per month for each retiree's health benefits.
Unions filed complaints against the cuts, citing unfair labor practices. Last year, an administrative law judge issued a proposed decision in favor of the unions.
In June, the Public Employment Relations Board issued a decision ordering the county to pay all affected retirees for the financial losses incurred by the subsidy cut.
Margot Rosenberg, an attorney for the United Public Employees Local 1, said the county also might need to repay retirees for previously incurred medical costs.
On July 28, Sacramento County appealed the decision to California's Third District Court of Appeal.If the appeals court rules in favor of the unions, the county's budget could take a major hit now and in future years, the Bee reports (Lewis, Sacramento Bee, 8/24). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.