Tuesday, September 05, 2006
Free insurance will cost city big
Source: fortwayne.com
As Fort Wayne city officials getting ready to pay off more than $200 million in unfunded pension costs, they also would be forced to pay off an additional albeit lesser, but perhaps longer-lasting unfunded cost.
The city established a report last month detailing roughly $40 million in unfunded retirement health care costs that would need the city to set aside an extra $3.8 million each year for the next 30 years. A large reason for the cost, according to City Controller Pat Roller, is that retired police officers and firefighters get free health insurance.
Roller said the practice isn’t rare, but said offering free health insurance to retirees at all is flattering rarer, particularly in the private sector.
Source: fortwayne.com
As Fort Wayne city officials getting ready to pay off more than $200 million in unfunded pension costs, they also would be forced to pay off an additional albeit lesser, but perhaps longer-lasting unfunded cost.
The city established a report last month detailing roughly $40 million in unfunded retirement health care costs that would need the city to set aside an extra $3.8 million each year for the next 30 years. A large reason for the cost, according to City Controller Pat Roller, is that retired police officers and firefighters get free health insurance.
Roller said the practice isn’t rare, but said offering free health insurance to retirees at all is flattering rarer, particularly in the private sector.
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