State Workers - What's the retirement HEALTH coverage like and what options are there? (health insurance)

[ecsdude]

If you're a California state worker, could you enlighten me on how the health coverage options and requirements work?

As a relatively new state worker, I unfortunately entered at 2% @ 62. I don't intend/wish to continue in state service up to the age of 62. I'd instead like to retire at 55. Because I entered state service late in life, the best I can hope for is 40% in pension if I were to work for the state until 62. If retiring at 55, the best I can hope for is 26-28% in pension. It's something, but alone it's not enough for retirement. So I'm in the midst of re-evaluating whether to return to the private sector to finish out my career now that I have additional marketable skill sets that I can leverage towards a higher salary that may allow me to earn/save more towards retirement than I will with the state, given how late I joined the state and my retirement tier.

But the other thing I need to take into consideration is HEALTH benefits with the state upon retirement and whether those benefits outweigh a move back to private sector and even a higher salary, making staying with the state a better choice in the long run.

I think I either read somewhere or heard by word of mouth that one needs to now serve 20 years to get state health benefits in retirement. That would mean I would need to work till like 61 anyway (a year away from my 2% @ 62), at which point I'd get a 40% pension and state health coverage in retirement.

If I were to return to private sector and retire from there, I'd not get the health coverage benefits in retirement. And I don't know how much good, solid health coverage would cost me out of pocket each year for the rest of my life if I had to pay for it myself.

If I were to retire at age 55, it would mean a gap of at least 7 years where I'd have to figure something out for health coverage if there's no state health benefits that can kick in due to the 20 years of service requirement. If retiring from private sector at 55, I'd have the same problem. It seems I'd have to pay for my own coverage during those years of retirement.

Do I pretty much have my information right? Am I missing anything? Something else to consider?

What'd be the best path to take given concerns about health coverage if I wish to retire at 55?

Thanks in advance.

[MyNewsLogin]

You are going to have to research some of this yourself based on the date you were hired and your bargaining unit. Start with CalPERS Publication 6 and it should direct you to other sources you will need.

The basics for most recently hired State employees (after 1989): You have to work at least 10 years before you vest in the retirement health benefit. At 10 years you get 50% of the State's contribution to health insurance. For each subsequent year, you get an addition 5%. After 20 years, you get 100% of the State's contribution. At age 65, you are required to enroll in Medicare.

Notice I did not say that you get 100% of your health insurance premium. The State contribution is modified every year and you get a percentage of it. It may or may not cover the entire premium and you are responsible for anything not covered by that contribution.

Some bargaining units have different requirements for vesting so you will need to do some reading on your own.

[ecsdude]

Thanks. This helps as a starting point.