GM agreed to move its unfunded retiree health care costs into an independent trust run by the UAW. That’s similar to a settlement reached last December.
The Sacramento County Office of Education agreed to transfer control over retiree health benefits to a trust fund to which employees and the teacher’s union contribute.
The county’s Superintendent of Schools Dave Gordon says it’s an unusual but smart arrangement.
"I think it’s pretty rare because it takes the employees having the foresight to say ‘if this is a benefit we want, we’re going to have to put money in to pay for it into the future’ much like a pension. That was the case we made to them."
Gordon says retirees now have guaranteed health benefits for life. He says there will always be money to pay for the benefits independent of funds needed to run the agency.