State Comptroller Thomas DiNapoli today submitted legislation that would allow state and local governments to save for retiree health insurance costs through a separate pool, saying state and local governments each face a unfunded liability of a whopping $68 billion.

When a public employee retires, they are typically able to retain health insurance, as well as get their pension.

While the state pension system covers retirees’ costs through annual contributions by state and local governments, they don’t have the same system for health insurance, creating an unfunded annual cost that they have to pay for through their operating budget each year.

“New York is behind the eight ball on this issue. More than 30 states have already put rules in place that allow public employers to set aside money today to pay for these benefits,” DiNapoli, a former Long Island assemblyman said, in a statement.

It’s a growing problem as the workforce ages and people living longer: The Empire Center for New York State Policy in 2012 warned that New York governments and schools face a $250 billion tab for retirees’ health insurance and no money set aside to pay for it.

DiNapoli’s bill, which is sponsored by Assemblyman Peter Abbate, D-Brooklyn, would create the new fund, put in the custody of the comptroller’s office and allows schools to transfer excess reserve to the fund.

There’s already a Retiree Health Benefits Trust in New York City to help cover the health insurance cost.

© 2015 The Journal News