Report explores funding for state retiree health care benefits
A new report from the Washington-based Center for State and Local Government Excellence explores some of the ways states are moving from a pay-as-you-go approach to funding future retiree health care benefits to one that addresses unfunded liabilities and rising health care costs. The center prepared the report, “Balancing Dollars and Health Sense: A Framework for Decision Making on Funding State Retiree Health Care Benefits,” in response to a request from the Michigan House of Representatives for research on retiree healthcare funding options in light of the state’s $22.7 billion in unfunded retiree health care obligations.
The Institute for Public Policy and Social Research at Michigan State University wrote the report with a grant from the center. The report examines practices in Michigan, Illinois, Ohio, Indiana, Wisconsin, Minnesota, Vermont, Hawaii and Massachusetts. It offers several recommendations, such as establishing a nonpartisan commission to develop a plan for funding retiree benefits, creating an irrevocable 115 Trust Fund with multiple funding sources and providing incentives to employees to remain healthy.
The full report is available at