Analyst warns governor's retiree health plan could cost more

Mar 16, 2015 5:16 PM by News Staff

SACRAMENTO, Calif. (AP) - An independent budget analyst is questioning Gov. Jerry Brown's call for state workers to contribute half the cost of their retirement health benefits.

In a report Monday, legislative analyst Mac Taylor says the state could end up paying more over time if current and future state workers are asked to help pay for their health benefits. He says when the state began requiring higher pension contributions from employees in 2013 it ended up offsetting the cost to employees with pay increases.

The Democratic governor announced his proposal in January for tackling California's estimated $72 billion unfunded retiree health care liability for more than 800,000 state employees and their family members.

Taylor is urging lawmakers to get engaged and suggests swapping out the benefit for alternative compensation, such as higher pay.

Copyright 2015 The Associated Press. All rights reserved.

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