Sacramento County Moves To Curb Retiree Health Costs
The Sacramento County Board of Supervisors on Thursday voted to cut medical and dental subsidies to county employees who retire after May 31, the Sacramento Bee reports.
The decision will affect 12,800 current employees but will not affect health care benefits for the county's 6,000 retired employees.
The county faces a projected $33 million budget deficit for the current fiscal year, and continuing health benefits for current employees next year would have cost $13.57 million, according to officials (Fletcher, Sacramento Bee, 5/18).
New federal accounting rules require public agencies to disclose unfunded health care and pension liabilities for current and future retirees (California Healthline, 5/9).
Geoff Davey, the county CFO, said the county should be able to avoid the rule after cutting the benefits for current employees. The county will continue to pay for benefits on a yearly basis.
The labor group representing a large percentage of county employees said it has filed a grievance against the county claiming unfair labor practices.
Steve Lakich, the county's chief labor negotiator, said, "I've read the charges, and I don't agree with it" (Sacramento Bee, 5/18).