§ 36-12.1-3 - Background.
SECTION 36-12.1-3
§ 36-12.1-3 Background. – The general assembly finds that the State faces a significant unfundedliability associated with its retiree health care benefits programs. To date,the State has been funding retiree health care benefits on a pay-as-you-gobasis. Recently established governmental accounting standards applicable to theState require that the State account for such unfunded costs on an accruedactuarial basis. An actuarial study conducted by the State shows that the Statefaces an unfunded future liability for retiree health care benefits in excessof six hundred million dollars ($600,000,000). The creation and eventualfunding of a dedicated trust fund for the purpose of financing this liabilityon accrued actuarial basis is fiscally prudent and will produce significantbenefits to the State.