Retiree Health Insurance Change

RALEIGH, N.C. The General Assembly has decided to take away a big benefit from future state employees, public school teachers and legislators.

Lawmakers agreed tonight to extend the amount of time state employees would have to work before receiving free health coverage for themselves when they retire.

The law now allows workers with only five years of service to get that benefit when they turn 60.

The bill extends that wait to 20 years of service.

The measure heads to Governor Easley's desk after the Senate unanimously agreed to House changes.

Lawmakers say the change is designed to encourage healthy workers to stay with the government or the public schools and discourage people from working for the state for a few years and quitting.

The bill is considered a first step toward catching up with the state's unfunded health care liability for current and future retirees. Those obligations toward retirees outpaces money set aside by more than 13 (B) billion dollars.