Retiree Benefits Could Be Cut
The San Diego County Board of Supervisors on Tuesday approved a plan to stop contributing $30 million annually to retiree health care benefits for current county employees and those who retired after 2002, the San Diego Union-Tribune reports.
The board of supervisors on Wednesday will ask the county retirement association to reduce the benefits. The retirement board is not required to follow the request.
However, if the request is denied, the county will stop contributing to the county health care fund, thereby compromising health care benefits for all retirees (Branscomb, San Diego Union-Tribune, 12/6).
The plan would affect 2,631 "Tier A" retirees, who retired after 2002, and the 17,518 current county employees. The 7,030 county employees who retired prior to 2002 would retain their health care benefits, pending the decision by the retirement association (California Healthline, 11/29).
The plan could save the county as much as $1.8 billion over 20 years as health care costs increase and new federal accounting rules take effect. The rules will require public pension systems to disclose the cost of future health care benefit payments to retirees (San Diego Union-Tribune, 12/6).
KPBS' "KPBS News" on Tuesday reported on San Diego County supervisors' decision to reduce health care benefits for retirees. The segment includes comments from Cathleen McLoud, a former employee who supports the decision (St. John, "KPBS News," KPBS, 12/5).
A transcript and audio of the segment are available online.