WHEREAS:

The increasing liability for employer provided health care benefits for retired and future retired employees is a growing concern for all employers. The increase is due to the expanded use of early retirement, cost shifting from Medicare, and improved longevity; and

WHEREAS:

Employer provided post-retirement health care coverage is often the key to financial security in retirement. In the public sector, retiree health coverage is even more critical because about 30% of all state and local government employees are not covered by Medicare; and because long service employees in positions of high stress and public safety often retire before they are eligible for Medicare. The problem has been compounded by early retirement incentives that have been used to reduce the size of the workforce; and

WHEREAS:

Most employers allow employees to continue to participate in the group health plan after retirement, but many state and local government employers make no contribution toward coverage. The cost of retiree coverage on a self-pay basis is often prohibitive. Where employers do pay the cost of retiree health coverage, the service requirement for full employer payment ranges from 5 to 25 years; and

WHEREAS:

Some AFSCME councils and locals have been able to secure partial employer payment of retiree health coverage through creative solutions such as converting sick leave at retirement to health insurance credits, or having an initially small employer contribution with expansion to a more substantial or full employer contribution in future years.

THEREFORE BE IT RESOLVED:

The Union recognizes the problems of increasing retiree health care liabilities, and will work to contain costs without shifting costs to the retirees and reducing quality and quantity of health care; and

BE IT FURTHER RESOLVED:

AFSCME councils and locals shall work to guarantee a continuation of health care coverage for all retired career employees; and

BE IT FINALLY RESOLVED:

Where the employer does not contribute the full cost of coverage, AFSCME shall work to secure additional employer contribution for career employees through legislative action and where appropriate, through collective bargaining.

SUBMITTED BY:

Steve Culen, Delegate and Executive Director
Council 31
Springfield, Illinois

Sue Zukowski, President
Bev Hermanson, Secretary
AFSCME Local 443, Council 28
Olympia, Washington