for retiree and dependent healthcare
on a pay-as-you-go basis. In 1992,
the state paid $60 million in
retiree/dependent healthcare costs. In
2008, the state paid $464 million in
retiree/dependent healthcare costs.
The ARC for 2008 was $1.65 billion.
That's a $1.2 billion shortfall. The
ARC is projected to be $4 billion with-
in 20 years.
directly into the OPEB trust where
they can be invested for the future.
salary and tie state public pension
retirement ages to the changing fed-
eral retirement ages.
from service to return for full benefits.
the funding percentage. Because of
the amounts paid, paying the ARC
will require cuts in other spending
and tax increases, difficult choices.
the remaining years of the amortiza-
before changes are made to the
largest unfunded entitlement on the
federal balance sheet is healthcare in
the form of Medicare. As for the mili-
tary, 10 years ago, healthcare cost the
Pentagon $19 billion; five years from
now it is projected to cost $65 billion.
growing faster than the rate of inflation
is healthcare. As costs are pushed
choose how much they can spend on
healthcare. Until we are willing to deal
with healthcare systems, cost, and
access, we, and future generations,
will remain tied to debilitating debt.
obligations and liabilities by serving on
the OPEB Commission. Viewing these
promises and obligations through a
wider lens is necessary to arrive at
realistic long-term solutions. There is
an abundance of other information
available on the demographic wave
and the federal role in this growing
problem. As CPAs, we can leverage
our knowledge to educate others
through local chambers of commerce,
business meetings, and reaching out to
and Finance Director.
She served on the
ness community participants. She can
be reached at firstname.lastname@example.org.
http://www.publicfundsurvey.org/publicfundsurvey/pdfs/Summary of Findings FY09.pdf