Health Watch

Top Features

College Cheerleaders

E-mail

Close Window E-mail This Page

Gap For Calif. Retiree Health Care Grows To $52B

Required fields are marked with an asterisk(*)

Recipient E-mail:*
- Your Name:*
- Your E-mail:*
Add a Message:
Send me a copy of this e-mail.

Type the characters in this picture:*

Click here to refresh with new letters

The information you provide will be used only to send the requested e-mail and will not be used to send any other e-mail communications. Read more in our Privacy Policy

Send E-mail

Print Share + Comments

Feb 9, 2010 1:19 pm US/Pacific

Gap For Calif. Retiree Health Care Grows To $52B

LOS ANGELES (AP) ―

Click to enlarge 1 of 1: (file image)
AP

Close

numSlides of totalImages

California taxpayers are on the hook for more state government retiree health benefits than previously thought.

The state controller's office on Tuesday issued a report showing the growing divide between what the state owes retirees for health and dental benefits and what it has saved so far.

The gap has grown to nearly $52 billion, about $3.6 billion over last year's estimate.

Controller John Chiang says the state can reduce its obligation by switching from a pay-as-you-go formula to a full-funding approach. That approach would involve setting more money aside now so the state can use investment income to pay for future benefits.

The report comes as the state already is struggling to pay for core services such as public schools and universities.