Retiree health funds protected by Prop A

A measure that will ensure funds for retiree health care are not spent on other budget items in The City was approved Tuesday. San Francisco voters passed Proposition A, which will make sure that The City does not spend money from its retiree health care trust fund until it is fully funded.

Starting in 2009, new San Francisco municipal employees have been contributing to the fund, which pays for the benefits of former workers. Despite the increased worker contributions, San Francisco has been spending about $150 million per year from the general fund to pay for retiree health care costs. Over the next few decades, that amount is expected to grow to between $250 million and $450 million per year.

Under Prop. A, San Francisco will not be allowed to divert the trust fund to other spending needs, except under specified circumstances in which several elected and nominated officials would have to approve the spending.

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