For example, almost all City, School and College District employees now enjoy fully paid dental plans that cover both themselves and their families. The premium of about $1,100 to $1,400 per year is fully paid by the employer (City, School or College). However, once retired, they must pay 100% of the cost of their dental plan premiums, and the retiree premiums are higher than those of active employees as well!

Health Service costs for dependent coverage paid by the employer varies slightly depending on the employee’s union, but currently averages between $2,700 and $3,000 per year. With this benefit, about 85% of City employees pay nothing for health insurance premiums covering their spouse or partner and family members. Prior to July of 2001, retirees were paying 100% of the cost of their dependent coverage … about $2,200 to $2,500 per year. Fortunately, however, with the passage of Prop. E last November, retirees now pay only 50% of the cost of their dependent coverage, but that’s still $1,100 to $1,250 per year! And it comes out of a pension check that is generally quite a bit smaller than their paycheck was as an active employee.

MEA members and some attorneys have negotiated benefit programs that allow them about $3,000 per year to pay for health premiums, life and other insurance, health club and union dues for themselves, their partners and families. Retirees do not enjoy any of those employer-paid benefits.

Active employees should stop to consider that they may have to pay an additional $2,000 to $3,000 or more per year out of their pockets in order to continue maintaining many of the same health and dental benefits they now enjoy at no cost. For many folks, that’s an unexpected and unplanned surprise!

Home