Bill rising for state retirees' benefits, Chiang warns
State Controllersaid Tuesday that taxpayers are on the hook for $51.8 billion worth of medical and dental benefits for state government retirees.
The controller recommended that legislators increase annual payments into the CalPERS system to reduce the bill, which is the cumulative amount in unfunded obligations the state faces in the future.
The controller said the unfunded obligation, calculated as of last June 30, was $3.6 billion higher than the year before. He pointed out that while the state should be setting aside $3.9 billion in this fiscal year to meet the obligations, the current budget provided only $1.3 billion.