Public Agencies Join CalPERS Fund for Retiree Health Care Costs
Four cities so far have contributed about $24 million to join a new CalPERS fund to help government entities and public agencies cover the cost of future retiree health benefits, the Sacramento Bee reports. CalPERS trustees received the information in a report presented Wednesday at their annual retreat.
At least one other city and five agencies are expected to provide another $30 million to the fund; they have agreed to join but have not yet contributed.
CalPERS launched the fund for its members this year in response to new government accounting standards that require government entities to disclose the cost of future retiree liabilities. Such costs could exceed $100 billion for cities, counties, schools and special districts in California, according to the Bee.
About 1,100 local agencies and the state can invest in the new fund, but CalPERS is supporting legislation that would expand eligibility to all other public agencies in California.
CalPERS officials also are considering establishing a smaller fund that would accept contributions from individual employees to help them save for out-of-pocket retiree health care costs. Michigan and a few other states offer similar programs (Chan, Sacramento Bee, 7/26).