As of June 30, 2008, Kentucky’s state employee health fund for non-hazardous employees was funded at only 11.1%, according to the state actuarial report.
That is the last available information. The problem is certainly worse now.
This means taxpayers, most of whom will never see employer-provided health benefits in early retirement, will have to pay a lot more in taxes to fund the same for state employees.
There is no way to eliminate this hugely pricey benefit in time to help escape our current fiscal dilemna but we should get rid of it now anyway. Incentivizing employees to retiree around age fifty clearly belongs in the category of luxuries we can no longer afford.