This article from the Legislative Analyst’s Office (California’s Nonpartisan Fiscal and Policy Advisor) reviews Chapter 9 of the Federal bankruptcy code as it applies to local governments and municipalities. It outlines the process and addresses questions including whether retiree benefits could be reduced.
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This 2012 survey of over 2,330 local units of government nationwide in Cobalt Community Research's "National Study of Local Government Health and OPEB Funding Strategies" found that, compared to 2011, "7% fewer local units of government ... provide health coverage to their active employees. Governments who do provide health coverage are paying a slightly smaller share of the premium. Fewer local governments are self-insuring. ...[There is] a significant drop in the percentage of local governments who provide health insurance for retired employees, especially in the Midwest. ...[T]here was a slight decrease in the percentage of local governments who are fully or partially prefunding their retiree health liabilities."
This is a report by the Public Employee Post-Employment Benefits Commission in January of 2008 about how to best fund post-employment benefits for our state's workforce.
U.S. Government Accountability Office found that despite the recent economic downturn, most large state and local government pension plans have assets sufficient to cover benefit payments to retirees for a decade or more. However, pension plans still face challenges over the long term due to the gap between assets and liabilities.
“The Challenges of Pension Reform” by Tony Oliviera covers the historical basis and evolution of California public pension plans. Aimed at people involved in pension decision-making, the paper addresses contains a good background discussion of retirement and pensions and then discusses the current issues and potential alternatives. Although written before AB 340, the paper is still relevant today.
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