Proposition A: Retiree Heath Care Trust Fund
This charter amendment changes the rules about the city’s retiree health care trust fund. The trust fund is built from contributions from city employees, and is designed to cover the city’s health care liabilities to retired employees. As the charter is currently written, the city may start using the money in the trust fund to pay for retiree health care after 2020. If Proposition A passes, the city will not be allowed to disburse the money until after the trust is fully funded, unless retiree health costs are more than 10% of the overall city payroll costs in a given year. This change is designed to help make sure the city’s liabilities are fully covered.
The proposition also splits the fund into subtrusts, which hold money from individual departments and can only cover that department’s health care costs once its subtrust is fully funded.
This was placed on the ballot by a unanimous vote of the Board of Supervisors, and is not opposed.