Retiree health care agency proposes solvency plan

Posted at: 07/28/2014 3:19 PM
By: The Associated Press

SANTA FE, N.M. (AP) - Taxpayers and public employees would chip in more money over three years under a proposal to improve the finances of a program providing health care for retired state and local government workers.

The Retiree Health Care Authority executive director Mark Tyndall said Monday the Legislature will be asked to approve the proposal when it convenes in January.

Under the proposal, about 100,000 public employees would make an additional $15 million in annual payroll contributions if the increases are fully implemented.

Governmental employers - meaning taxpayers - would increase their yearly payments by $30 million.

A government worker or educator earning $40,000 annually would pay an extra $150 a year if the 0.375 percent payroll contribution rate increase is enacted.

The proposal is for a three-year phase-in of the increase.

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