Other Post Employment Benefits
Liabilities for the State's Other Post Employment Benefits

Pursuant to the new reporting standards adopted by GASB 45, the State Controller recently released an actuarial valuation which identified the total estimated future liabilities as $47.88 billion. The State Controller's GASB 45 valuation assumed the annual increase in health care premiums will decline from the current 10 percent in 2008-09 to only 4.5 percent in 2017-18 and beyond. The assumption regarding future increases in health care costs is a significant departure from the historical trends. In order for these assumptions to be realized, the state will need to focus on how best to manage future health care costs.


STATE CONTROLLER ASSUMPTIONS
 The State Controller's valuation for OPEB liabilities used the following health care inflation assumptions:

  • 9.5 percent for 2009-10
  • 9.0 percent for 2010-11
  • 8.5 percent for 2011-12
  • 8.0 percent for 2012-13
  • 7.5 percent for 2013-14
  • 7.0 percent for 2014-15
  • 6.5 percent for 2015-16
  • 5.5 percent for 2016-17
  • 4.5 percent for 2017-18
image of backward arrow image of forward arrow
CHAPTER HIGHLIGHTS for Statewide Issues Back to Top

 Other Post Employment Benefits
 image of black pointing arrowLiabilities for the State's Other Post Employment Benefits
  Budget Considerations
  State Active and Retiree Health Benefits
 State Civil Service Human Resources Reform
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Statewide Issues (pdf * - 132K) -
Provides this entire Statewide Issues Chapter in pdf format.