The 2015-16 Budget: Health Benefits for Retired State Employees

Prefunding Benefits Begins. The Governor’s proposal would establish a “standard” that state employees and their employer share the costs to prefund retiree health benefits. Specifically, employees and the state each would pay half of the amount of money actuaries estimate is needed to be invested to pay for these future obligations. Under this concept, employees and the state each would contribute funds equal to about 3 percent of pay. This money would be put into a preexisting CalPERS trust fund,

Plan for the High Cost of Health Care in Retirement | California Teachers Association – Financial Tools for Educators

Many districts require educators to have achieved a specific age and/or years of service to qualify for post-retirement benefits, if they do pay them at all, and many put caps on the amount they will pay. Before you retire, be sure to check what your district offers for retiree health care coverage, especially if you plan to retire before you become eligible for Medicare at age 65. Check your collective bargaining agreement or contact your CTA Primary Contact Staff to learn about your district-paid retiree medical benefits