Independent Voter Network
California’s unfunded public pensions have been a growing burden in the state’s budget, reaching more than $300 billion in 2013. However, left out of the equation are the other post-employment benefits (OPEB), mainly healthcare benefits for current retirees, which weigh on the state’s finances. Most public employees in California are being offered, on top of their pension, full healthcare benefits when they retire. It is only since the mandatory public disclosure of these costs in 2008 that the true costs of the OPEB became clear. With healthcare costs rising and people living longer, California’s liability for OPEB is $63.9 billion.
