SB 454 will require the state to implement retiree medical healthcare benefit reform.
This bill will make reforms to retired state employee medical healthcare including requiring the Annual OPEB Cost (AOC) be 100% funded; eliminate the Other Post-Employment Benefits (OPEB) 50/50 cost-share-split between the state and its employees, and require 100% of the benefit be paid by the state; and require all state employees to use the 80/80 formula for basic health benefit plan premiums.
- The Sacramento Bee: State retiree health care could cost California $6.6 billion a year
- California Political Review: California Healthcare Unfunded Liability” $76.68 Billion—UP $2.49 Billion in a Year
- California State Controller: State Controller Yee Updates Unfunded Retiree Health Care Liability
- LA Times: Understanding California's public pension debt