Senate Bill 454 - Retiree Medical Costs

February 27, 2017


SB 454 will require the state to implement retiree medical healthcare benefit reform.

Support Letters:

Issue Background:

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.



Eric Dietz, Policy Consultant, (916) 651-4037