By NextBestFitState & local employee and retiree health plans
endsYear 4States & localities
Today
Teachers, police, and public workers; large unfunded retiree-health (OPEB) liabilities.
Under the plan
Close; employer pays payroll tax; OPEB liabilities largely extinguished.
Trade-off
Big savings for state budgets; public-sector unions lose a core bargained benefit.
Money
- State & local employer premiums$246.8B → $0.0B
- State & local employer health payroll tax (new)$0.0B → $100.5B