GAO Report Looks At Financial Outlook Of Government Retiree Benefits

Main Category: Health Insurance / Medical Insurance
Also Included In: Seniors / Aging
Article Date: 29 Oct 2007 - 12:00 PDT

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"State and Local Government Retiree Benefits: Current Status of Benefit Structures, Protections and Fiscal Outlook for Funding Future Costs," Government Accountability Office: For the report, GAO developed a model that simulated the fiscal outlook for state and local governments' abilities to provide retiree benefits to their workers amid questions about whether the public sector can continue to finance the benefits at their current levels. According to the report, estimated future pension costs would require an increase in annual government contribution rates (currently 9% of employee pay) of less than a half percent, while contribution rates for retiree health benefits (now 2% of pay) would more than double by the year 2050 if they continue to be funded on a pay-as-you-go basis. GAO also provides an overview of the structure and types of benefits provided by the public sector; how retiree benefits are protected and managed; and a fiscal overview for retiree benefits and what governments are doing to ensure they can meet their future commitments (GAO, "State and Local Government Retiree Benefits: Current Status of Benefit Structures, Protections and Fiscal Outlook for Funding Future Costs," September 2007).

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