|
Reasons to Preserve Public Retiree Health Care Benefits
- Workers sacrificed wages in order to win retiree health benefits. They earned them and they need them.
- Politicians promised the benefits and decided not to pre-fund them. Now, it’s their obligation to fulfill their promises — by raising revenue if necessary.
- Unfunded future obligations occur in many government functions, including Medicaid and prisoner costs, but GASB has unfairly singled out retiree health care.
- If the value of roads and buildings had to be listed as assets on government balance sheets, they’d offset long-range obligations for retiree health care.
- GASB methods tend to overstate liability for health care by assuming future inflation and benefit levels — almost impossible to predict in the long term.
These and other arguments were laid out at a recent International Union seminar on GASB for union contract negotiators. “We want to be sure our affiliates are fully prepared for the fights that lay ahead,” President McEntee said. “Wherever our members’ benefits are threatened, AFSCME will be ready.”
|
 |
.gif)
