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Tuesday, January 6, 2015

Unfunded Retiree Health Care Liability

Gov. Brown only briefly mentioned public pensions in his state of the state address yesterday.  And he did not deal with the issue of the nonfunding by the state of the UC pension (unlike CSU - whose pension is part of CalPERS).  He did, however, mention prefunding of retiree health care - although there was no hint he is including UC's retiree health care in his plan. (The plan presumably will be fleshed out in the budget message on Friday.)  However, Brown did say that the prefunding of retiree health would be accomplished, at least in part, by employee contributions. UC, which has not prefunded retiree health, will be under pressure to do whatever other state agencies do in this regard, even if it is not included in the plan.

You can hear his remarks at the link below:
video

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