Changes to state employees’ retirement -- could we be next?
The House Appropriations Committee heard testimony today on HB 4701 and 4702 which would gut the state employees retirement health system and shift the $14.5 unfunded liability of the plan onto the backs of employees.
Changing employees to a defined contribution health plan would drop the liability to $9 billion, administration officials claim. Savings in the first year is estimated at $50 million.
While school employees are not included in this legislation, it was clear that extending these changes to other employee groups is a possibility.
MEA will continue to monitor the progress of these bills.