California School District Spends Almost $32 million Per Year on Insurance Subsidies for Retired Teachers

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Just another way taxpayers get fleeced in San Francisco.

The San Francisco Unified School District (SFUSD) in California spends $31.9 million each year on "Other Post-Employment Benefits," which includes insurance subsidies for retired employees. For participants over the age of 65, the school district subsidizes 85% of premium costs, while the average California school district only covers 68%.

This is on top of employees’ generous pension, which is a lifetime benefit that employees can claim at only 50 years old, and after just 5 years of California Public Employees’ Retirement System pensionable service credits.

Why does it cost so much to subsidize insurance for former employees?

Because the SFUSD is one of the few districts – even in California -- to subsidize retirees already on Medicare. They also do not take advantage of federal and state subsidies available under Obamacare for employees under the age of 65. Therefore, instead of using existing programs to provide affordable health coverage for former employees, the school district subsidizes a subsidy.

Employees over the age of 65 have access to Medicare, the federal program that provides affordable health insurance to retirees. Employees under the age of 65 have access to the Covered California program, which provides similarly affordable health insurance plans subsidized by the state of California.

The duplicity and wastefulness of this program hurts not only the taxpayer, but also the students in San Francisco public schools.

Every dollar spent on unnecessary healthcare benefits for retirees is a dollar that isn’t educating students in the classroom.

The $31.9 million could be used for educational materials, more teachers, or student resources, but instead is used to subsidize a subsidy for retirees as young as age 50.

The #WasteOfTheDay is presented by the forensic auditors at

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