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Archive for February, 2009

California’s $48 billion retiree health debt can’t be ignored

February 26th, 2009 Admin No comments

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.

Report says California is spending too much for retiree health care

February 25th, 2009 Admin No comments

From an article by Jon Ortiz in The Sacramento Bee:


Marcia Fritz

Marcia Fritz

Groups seeking changes to public employee benefits, such as the California Foundation for Fiscal Responsibility, say that pouring more money into retiree health care won’t fix things long term.The Citrus Heights-based group has called for increasing the fully benefitted retirement age for newly hired civil service employees. Safety employees such as the Highway Patrol can now retire at age 50. Nonsafety workers can retire at 55.

“We’re encouraging people to retire early just by giving them health care coverage before they qualify for Medicare,” said Marcia Fritz, the foundation’s vice president. “The question we need to confront is what are we trying to accomplish with these benefits?”