Spotlight on Retiree Health Care Benefits for State Employees in 2013

Source: Joshua Franzel, Center for Excellence, and Alex Brown, Center for Excellence and NASRA, June 4, 2013

Key findings:
– Health care as a portion of overall public employee wage and benefit compensation has increased from 10 percent in 2004 to 12 percent in 2012.
– Fewer state government units offer retiree health care benefits now compared to ten years ago.
– Retiree health care obligations on a per capita basis vary widely among states.
– Unfunded retiree health care liabilities are concentrated in a minority of states: of all state retiree health care unfunded liabilities, 80 percent are attributable to 12 states.
– States use a variety of methods to reduce their retiree health care costs, most commonly shifting more costs to employees and retirees.