Iceberg ahead
Subtitle: the hidden cost of public-sector retiree health benefits in New York
Contributors: Empire Center for New York State Policy
Series: Special report; Special report
Publisher: Empire Center for New York State Policy
Published: 2010
Place of publication: Albany
Language: eng
Subjects: Government employees' health insurance; Civil service pensioners; Medical care; Finance; Retired Officials and employees; Employee fringe benefits; Cost of Medical care
Description: "New York taxpayers spend billions of dollars a year on health insurance coverage for retired state and local government employees, many of whom are too young to be eligible for Medicare. But the mounting "pay-as-you-go" bill for retiree healthcare is just the tip of a much larger iceberg. Now, thanks to a new government accounting standard, the true cost of this long-term entitlement is finally emerging from the murky depths of state and local finances. Based on a review of financial reports for the state and its largest local governments, school districts and public authorities, this report estimates that New York's total unfunded liability for public-sector retiree health insurance comes to $205 billion. This figure represents a mammoth potential transfer of wealth from future taxpayers to current government employees and retirees--for a type of benefit that is not available to the vast majority of private-sector workers. The burden of retiree health care is clearly unsustainable and unaffordable. This report, designed as a primer on the issue for taxpayers and government officials, recommends a four-step plan for curbing retiree health care costs before it is too late."
Notes: Viewed on Oct. 15, 2010.

"SR8-10 October 2010."