National Health Care Reform

Myths vs. Facts

Fact:
The amount an employer pays for retiree health benefits varies by employer. CalPERS negotiates for health insurance benefits for retirees and employees of the State, public agencies, special districts, and school districts. For employees and retirees who elect to participate in CalPERS-offered health plans, the employer contribution amount varies. For State employees and retirees, the employer’s share is dependent upon hire date and years worked.

For example, a State worker hired on or after January 1, 1989, would have to work for 20 years to receive 100 percent of the employer (State) contribution in retirement. Depending on the health plan the retiree chooses, the employer contribution may or may not be sufficient to cover 100 percent of the cost of the retiree’s health premium.

For employees and retirees of public agencies, special districts, and school districts, the amount their employer pays in contributions depends on the agency’s contract with CalPERS. The employer contribution can range from as little as $1 to as much as 100 percent.