Retiree benefit payments looming

Eleven California cities unprepared to pay future government health benefits

A new report charges California is unprepared to cover the future health-care costs of government retirees.

The report by California Common Sense found 11 of the 20 California cities with the largest budgets have not set aside funding to pay for $12 billion (out of a total of $16 billion) in future non-pension benefits promised government workers, according to California Watch. The report’s authors urged California’s cities to set aside funds for future health-care benefits and reduce costs through increased employee contributions and restricted benefit eligibility. The report also warned that failure to properly manage retiree health care could hinder a city’s ability to cover other important expenses.

The 11 cities are Fresno, Glendale, Long Beach, Oakland, Pasadena, Redding, Riverside, Sacramento, San Francisco, Santa Ana and Santa Monica.