News

Leg. staff offers better mousetrap on retiree benefits. Will the Senate buy it?

Retiree-benefotsLegislative staff pitched a policy solution to lawmakers on Monday that could reduce the state’s $25.5 billion unfunded liability associated with the Retiree Health Benefit Fund by 11.8 percent, producing a larger cost savings than the Senate’s proposal to eliminate retiree health benefits for all teachers and state employees hired after January 1, 2016.

The fix? Shift some of the costs associated with providing fully funded retiree health plans to the federal government. Going that route would require all retirees to enroll in Medicare Advantage plans—and by doing so, retirees shouldn’t be expected to bear more out-of-pocket expenses and the state would save $64 million annually, reducing the total unfunded liability by about $3 billion.

The Senate, on the other hand, wants to address the unfunded liability by eliminating retiree health benefits for new hires beginning in 2016. Some say this option will unfairly shift more costs to the worker and could hurt recruitment efforts, while producing an estimated smaller cost savings of 10 percent as opposed to the 11.8 percent that would come with enrolling retirees into Medicare Advantage plans.

For the full story, head on over to our main site. And you can read the legislative report below.

Check Also

Changing hats, but my focus remains on education

Dear NC Policy Watch readers, It’s been a ...

Top Stories from NCPW

  • News
  • Commentary

WASHINGTON — The U.S. Supreme Court on Wednesday upheld a Trump administration effort to exempt empl [...]

Last semester, as the COVID-19 pandemic closed all UNC System campuses, Samantha Pilot welcomed her [...]

After years of effort, opponents of the cancelled Atlantic Coast Pipeline celebrate, reflect and loo [...]

As COVID-19 cases continue to reach new record highs in North Carolina, students at UNC system schoo [...]

For the past month, there has been much said about the current racial climate in America. The eyes o [...]

If ever there was a year in which it is a good thing to be past the midway point, 2020 would appear [...]

The post Bottom Lines Matter appeared first on NC Policy Watch. [...]

…Fellow-citizens, pardon me, allow me to ask, why am I called upon to speak here to-day? What have I [...]