San Diego Moves Ahead on Deal To Curb Retiree Health Care Spending
The San Diego City Council has authorized Mayor Jerry Sanders (R) to move forward on a tentative deal with city worker labor unions that is expected to reduce by $323 million the city's $1.1 billion shortfall in retiree health care obligations, the San Diego Union-Tribune reports.
Details of the Deal
Under the plan, San Diego city workers hired before July 1, 2005, would be required for the first time to contribute part of their salary toward retiree health benefits beginning in April 2012.Â Employees hired after July 1, 2005, are not eligible for the retiree health benefits, and retired workers would see no change in their benefits.
The deal does not apply to police officers, who have yet to negotiate an agreement with city leaders (Gustafson, San Diego Union-Tribune, 5/6).
The mayor said the deal would result in cumulative savings of $714 million over 25 years.
The agreement is drawn out to last 15 years, but the city council could use a supermajority vote to renegotiate it in 2014 (Dillon, Voice of San Diego, 5/6).
AÂ San Diego Union-Tribune editorial states that the newly announced labor deal with San Diego city workers "appears promising." However, it adds, "There needs to be much more explanation of the assumptions driving the numbers of the complicated deal." The editorial concludes, "This matter is too complex -- and too important -- to do in haste"Â (San Diego Union-Tribune, 5/6).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.