As of June 30, 2008, Kentucky's state employee health fund for non-hazardous employees was funded at only 11.1%, according to the state actuarial report.
That is the last available information. The problem is certainly worse now.
This means taxpayers, most of whom will never see employer-provided health benefits in early retirement, will have to pay a lot more in taxes to fund the same for state employees.
There is no way to eliminate this hugely pricey benefit in time to help escape our current fiscal dilemna but we should get rid of it now anyway. Incentivizing employees to retiree around age fifty clearly belongs in the category of luxuries we can no longer afford.
Monday, January 26, 2009
Cutting "Grey Poupon" health bennies
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2 comments:
This problem was partially corrected already.
I believe, anyone hired after June 30th, 2004 gets $10 per year of service per month towards health care once they retire. Much easier to actuarially plan for.
Before 2004, you earn a percentage of your health care paid by the state. With premiums rising so rapidly, it's easy to see how this leads to the system underfunded.
So you can debate eliminating the current system. But it's small change compared to the workers hired before 2004.
The change you refer to took place in 2003 and you are right that it is small change compared to earlier hires, but if we are to escape this runaway train we have to pull out every available penny. There is nothing we can do about earlier hires but cough up the money. Without pushing every available button to change the culture in state government, we will never get off the treadmill. Government is unaffordable and getting worse. That has to be reversed by any means necessary.
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