Tuesday, March 6, 2007
The $14 BILLION Unfunded Health BenefitLiability
Similar to the pure pension benefit, the teachers pension fund has disclosed (in a small footnote) the fact that it's promised health benefit is underfunded by $14 BILLION. Again, at what point does this become a problem. The audit indicates the fund is in good health, but that's qualified in a very narrow sense. Interestingly, this page is in a letter of transmittal that is not searched using Adobe's find function - it's hidden on page 8 of the full report (find it here for 2006) unless you know where to look.