Prefunding of Retirement Health Benefits

[Cinnamon]

Anyone else getting hit with this? 

The State and Bargaining Unit 9 hereby agree to share in the responsibility toward the prefunding of post-retirement health benefits for members of Bargaining Unit 9; and, agree that the foregoing concepts will be implemented as a means to begin to offset the future financial liability for health benefits for retired members.

A. Beginning July 1, 2017, the State and Bargaining Unit 9 will prefund retiree healthcare, with the goal of reaching a 50 percent cost sharing of actuarially determined total normal costs for both employer and employees by July 1, 2019. The amount of employee and matching employer contributions required to prefund retiree healthcare shall increase by the following percentages of pensionable compensation:

1. July 1, 2017: by 0.5 percent.
   
2. July 1, 2018: by 0.5 percent, for a total of 1.0 percent.
   
3. July 1, 2019: by 1.0 percent, for a total of 0 percent.
   

 

[matt267 PE]

Not quite like that, but our contributions have gone up over the years.

 

[snickerd3]

I dont think we do this, but if we have 20 yrs in we don't pay anything for the retiree health insurance.  If less than 20 we would have to pay some, how much i don't know

 

[Cinnamon]

I dont think we do this, but if we have 20 yrs in we don't pay anything for the retiree health insurance.  If less than 20 we would have to pay some, how much i don't know

That was the rule, then it changed to if you have 5 yrs (i.e. are vested) then you only pay you're share and the State paid their share. What this rule says is now we must pre fund the state's portion of our retirement health benefit.  there is immense pressure from outside to eliminate/errode public employee retirement benefits.