Increase Retirements among public workers as States Shift costs of health care

Increase Retirements among public workers as States Shift costs of health care -

Many states across the country have considered changing the amount of public employees contribute to health insurance premiums, pensions and the cost of retiree health care as they deal with large deficits. The displacement movement higher costs for employees is shared between the private sector, but not for public employees.

As states adopt laws or negotiate with the unions to resolve employee contributions, a strong increase in staff taking early retirement at any age. California, Florida, Texas, New York, Wisconsin, Ohio, New Jersey and Illinois have all observed dramatic increases in the number of officials who retire.

Does states able to cover their commitments for retirees?

Bloomberg reports that states have about 77 percent of covered liabilities for retirees. Illinois has the least saved and the state has only 50 percent of covered liabilities for retirees.

Some states have received grant funds for the reform of health care to cover the cost of retiree health insurance. The pension system of the California Public Service received $ 57.8 million in the coming years, which will help cover health insurance costs California. In 2010, California has seen an increase of 20 percent in the number of teachers who are retiring and they expect that number to grow this year too.

To fight against the 15 billion $ 2.012 fiscal deficit for states, become much more likely to pass legislation to increase public employee contributions - resulting in more retirements.

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