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Monday, May 12, 2008

PA liability for state retiree health: $8.8 billion

The PA Office of the Budget released their actuarial report on retiree health care liabilities, revealing that the estimated unfunded liablity as of July 1, 2008 is $8.8 billion (under GASB 45 requirements). This would require a $720 million contribution next to begin paying down over, I presume, 30 years (escalating in future years as it is calculated as a percentage of payroll) - though the state is not required pay that amount, but can continue its "pay as you go" practice.

The AP Story the Morning Call notes the price tag is lower than an earlier number (which is somewhat confusing as that number was never reported in a full analysis) because the state has begun requiring retirees to pay part of the premiums and have a higher deductible.

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