States Aim Ax at Health Cost of Retirement

Publication: Washington Post

Author: Steven Greenhouse


02/13/2011 - As they contend with growing budget deficits and higher pension costs, some mayors are complaining that their outlays for retiree health benefits are rising by 20 percent a year — a result of the wave of retirements of baby boomers and longer life expectancies on top of the double-digit rate of health care inflation.

The nation’s governors face a daunting $555 billion in unfunded liabilities to finance retiree health coverage. The Pew Center on the States calculated those long-term obligations last year, saying New Jersey had the largest amount, $68.9 billion, with California second, at $62.5 billion.

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Read the article States Aim Ax at Health Cost of Retirement in its entirety on the Washington Post Web site.

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