Unfunded Liabilities for Retiree Health Benefits, A School District Fiscal Time Bomb!
April 01, 2010 Filed in: Unions
2009-2010 Sacramento Grand Jury While employers, employees, and
retirees seem to consider an employer-sponsored health plan a
desirable benefit, the continuing escalation of health care and
premium costs places enormous fiscal pressure on school districts
that try to maintain the benefits. Unless union contracts are
renegotiated so that benefits are reduced or employees contribute
to the payment of healthcare costs, the consequences will be
devastating. Health care costs will continue to escalate. If school
districts fail to plan for funding of negotiated obligations for
retiree health benefits, and employees and/or unions fail to assume
some of the costs of the benefits, school districts will be unable
to provide a quality education for students and may become
bankrupt…