Who Will Pay the Cost of Government Employer Retiree Health Benefits?

Source: Harvey M. Katz, Labor Law Journal, Spring 2008

Who will pay the cost of government employer retiree health benefits? The short answer to that question is that the union worker will pay the cost in the form o decreased benefits, higher contributions, and/or fewer union jobs–unless they act now. This unequivocal statement may seem a bit extreme, however, thirty years of experience as a benefits attorney tells me that it is true. As explained below, my reasons for making such an extreme statement are sound and the cost of ignoring the impending crisis will be enormous.

Leave a Reply