Calif. county cuts retiree health premium subsidy

SACRAMENTO, Calif.--Because of a projected $33 million budget shortfall for the fiscal year ending June 30, Sacramento County, Calif., employees who retire after May 31 no longer will receive health insurance premium subsidies, county supervisors decided Thursday.

However, current retirees' health insurance premium subsidies have been renewed for another year by the county's supervisors, who decide annually whether to continue the payments.

Currently, 5,600 Sacramento County retirees receive up to $244 per month for medical expenses and up to $25 per month for dental care, an amount that has remained unchanged for several years, said Charles Egbert, general manager of United Public Employees Union Local 1, the union to which most county employees belong.