The Crisis in State and Local Government Retiree Health Benefit Plans: Myths and Realities

Source: Robert L. Clark, Center for State and Local Government Excellence, Issue Brief, November 2009

States with the lowest unfunded liabilities include North Dakota, Wyoming, Iowa, Oregon, Rhode Island, and Oklahoma; states with the largest include New Jersey, New York, California, North Carolina, Connecticut, Louisiana, and Texas. The brief finds that:

– Although there are wide-spread reports of a major fiscal crisis, the reality is that some states face a fiscal crisis while others do not.
– There are substantial differences in the total liabilities of state retiree health plans, depending on the generosity of the plan and the size of the public sector.
– Retirement benefits are not protected by state laws or constitutions, and public sector employers will continue to amend their plans to reduce costs.
See also:
2008 version

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