The State Worker

Chronicling civil-service life for California state workers

September 4, 2009
Read the analysis of the CAHP plan to prefund retiree health benefits

Thumbnail image for CHP logo 1_ots.ca.gov.jpgThe Legislative Analyst has released its take on the California Association of Highway Patrolmen plan to forego a half-percent raise that they were to take in July and put the money into a retiree health benefits trust fund. Assuming that the Legislature signs off on the deal, officers also would start putting in another 0.5 percent of their base wages into the fund, probably around Jan. 1.

The scheduled 2010 raise -- and it might not be much -- also would go into the union's retiree health benefits fund.

As reported by The Bee's Andrew McIntosh in this story, the state would begin matching the officers' contribution beginning on July 1, 2012. The combined contributions could total up to $40 million for the 2012-13 fiscal year. But, the LAO notes, "... the combined employee and employer contributions would be insufficient to cover the estimated $52 million annual contribution needed to retire unfunded CHP officer retiree health liabilities within the next three decades."

Still, the analyst notes, "If the proposal is approved, it would mark the first time that the
State of California and a group of its employees have begun to address unfunded liabili-
ties for state employee retiree health benefits through establishment of a retiree health
trust fund."

Click here for the LAO analysis.

The Bee editorial board endorses what CAHP has done. This link will take you to its Thursday editorial, "CHP contract a model for others."

IMAGE: www.chp.ca.gov

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About The State Worker

Jon Ortiz The Author

Jon Ortiz launched The State Worker blog and a companion column in 2008 to cover state government from the perspective of California government employees. Every day he filters the news through a single question: "What does this mean for state workers?" Join Ortiz for updates and debate on state pay, benefits, pensions, contracts and jobs. Contact him at (916) 321-1043 and at jortiz@sacbee.com.

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