Thursday, May 23, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, September 20, 2019
Hawaii retiree health care severely underfunded
By News Release @ 4:37 AM :: 4101 Views :: Hawaii State Government, Labor

Hawaii retiree health care severely underfunded

Across the 50 states retiree health care is only 7% funded

News Release from Truth in Accounting, Sep 19, 2019

In fiscal year (FY) 2018, the most recent fiscal year, state and local governments that use Generally Accepted Accounting Principles were required to report their unfunded liabilities related to other post-employment benefits (OPEB). OPEB comprises mainly retiree health care benefits. State and local governments have long hid retirement benefit obligations, including pensions and OPEB, off their balance sheets.

Since 2009, Truth in Accounting (TIA) has been reporting the amount of state unfunded retirement liabilities, despite the fact that those numbers were not counted on state government balance sheets. In TIA's most recent report, it found that the 50 states have less than seven cents set aside to pay every dollar of promised OPEB.

Several states have not set any money aside to pay for OPEB, including Mississippi, Nevada, New Jersey, Arkansas, Iowa, Kansas, Louisiana, Minnesota, Montana, Nebraska, Tennessee, Washington, Wyoming, Illinois, and Vermont. The average funding ratio for the 50 states in FY 2018 was 18.5 percent, which is up from less than seven percent in 2009.

Hawaii's OPEB plans are only 12.7 percent funded. Hawaii, like many others, treats OPEB on a pay-as-you-go basis, whereby benefits are paid when retirees receive the health care. This leaves future taxpayers stuck paying for OPEB benefits earned by current employees, although those future taxpayers will receive no government services or benefits for the taxes that go to pay these benefits. Even worse, state retirees are counting on these promised benefits that have not been funded.


Related: Act 268 Hawaii Unfunded Liabilities Plan: Pot of Gold for Corrupt Union Leaders


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii