Spotlight on Retiree Health Care Benefits for State Employees in FY 2015


The brief examines the finances of the health insurance benefit plans offered by state governments to retired employees in all 50 states, as part of an ongoing NASRA/SLGE series.

Alex Brown, with contributions from Joshua M. Franzel, PhD and Lola Oduyeru
Publication date:
May 2017
Filed under:
Research Studies
Key findings:
Key findings include:
  • Nearly every state and most local governments provide access to health benefits to retired employees and, in most cases, this coverage includes spouses and dependents;
  • Thirty-one states hold approximately $41 billion in assets to pay for future retiree health benefit costs;
  • The median state retiree health unfunded actuarial accrued liabilities is approximately $2.7 billion, and the mean average is just over $12 billion; and
  • Ten states - New Jersey, Texas, New York, California, Illinois, North Carolina, Connecticut, Pennsylvania, Florida, and Massachusetts - are responsible for $451 billion, or nearly 77 percent of the aggregate state retiree health unfunded actuarial accrued liabilities.
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