If you are planning on retiring...you are no longer considered a retiree, you are now a " Long Term Debt"... not a very complimentary term by any means...makes you feel real warm and fuzzy doesn't it...just more number crunching and ways to save money and find some blood in a tulip...so I guess instead of using the word " Retire", we could just be calculating the date upon when we decide to cross over from employee to being and "LTD"... BD
This is the first year that larger municipalities must report non-pension retiree benefits as a long-term debt. In the past, cities and counties were required to report their pension liability, but not the value of other benefits given to retirees.
That changed in 2004 with new rules issued by the Government Accounting Standards Board, an independent agency that oversees financial reporting for municipalities across the United States. Those rules took effect this year for large cities and counties.
Last year, San Diego County decided to limit its health care benefits for some retirees in advance of the new reporting requirements. In a settlement with unions approved in September, the county eliminated those health benefits for pensioners who retired after 2002, but it gives them an extra monthly check of up to $400 to offset the loss. If left in place, the county health subsidies would have added $670 million to the county's long-term debt. The county pension system already has a $1.2 billion deficit.