California’s $48 billion retiree health debt can’t be ignored
From an editorial in The Orange County Register:
Reform-minded groups like the California Foundation for Fiscal Responsibility say increasing the benefit retirement age for newly hired employees would save more. Safety employees can now retire at age 50, nonsafety workers at 55.
It’s problematic to change benefits promised current employees and those already retired. But there’s no moral obligation to provide equal early retirement incentives for new hires.
Indeed, Marcia Fritz, California Foundation for Fiscal Responsibility vice president, points out that the current benefit encourages early retirement by providing medical coverage long before retirees can qualify for Medicare. “What,” she asks, “are we trying to accomplish with these benefits?”
Whatever the state is trying to accomplish, it’s certainly succeeding in creating a monstrous unpaid debt that eventually must be paid.

