Introduced Version House Bill 3161 History

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hb3161 intr
H. B. 3161

(By Mr. Speaker, Mr. Kiss (By Request))
[Introduced March 23, 2005; referred to the
Committee on Pensions and Retirement then Finance.]

A BILL to amend and reenact §5-16-18 of the Code of West Virginia, 1931, as amended, relating to providing the allocation of funds that may be appropriated to subsidize the employers share of premium costs payments made on behalf of retirees eligible for coverage under this article for certain employers.

Be it enacted by the Legislature of West Virginia:
That §5-16-18 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
§5-16-18. Payment of costs by employer; schedule of insurance; special funds created; duties of Treasurer with respect thereto.

(a) All employers operating from state general revenue or special revenue funds or federal funds or any combination of those funds shall budget the cost of insurance coverage provided by the Public Employees Insurance Agency to current and retired employees of the employer as a separate line item, titled "PEIA", in its respective annual budget and are responsible for the transfer of funds to the director for the cost of insurance for employees covered by the plan. Each spending unit shall pay to the director its proportionate share from each source of funds. Any agency wishing to charge general revenue funds for insurance benefits for retirees under section thirteen of this article shall provide documentation to the director that the benefits cannot be paid for by any special revenue account or that the retiring employee has been paid solely with general revenue funds for twelve months prior to retirement.
(b) If the general revenue appropriation for any employer, excluding county boards of education, is insufficient to cover the cost of insurance coverage for the employer's participating employees, retired employees and surviving dependents, the employer shall pay the remainder of the cost from its "personal services" or "unclassified" line items. The amount of the payments for county boards of education shall be determined by the method set forth in section twenty-four, article nine-a, chapter eighteen of this code: Provided, That local excess levy funds shall be used only for the purposes for which they were raised: Provided, however, That after approval of its annual financial plan, but in no event later than the thirty-first day of December of each year, the finance board shall notify the Legislature and county boards of education of the maximum amount of employer premiums that the county boards of education shall pay for covered employees during the following fiscal year.
(c) All other employers not operating from the state general revenue fund shall pay to the director their share of premium costs from their respective budgets. The finance board shall establish the employers' share of premium costs to reflect and pay the actual costs of the coverage including incurred but not reported claims: Provided, That the director shall allocate in a equitable manner funds appropriated for the purpose of subsidizing all or a portion of retirees eligible for coverage under this article by employers that are: (1) Described in subsection (d) of this section and are operated on a not-for-profit basis; (2) employ fewer than fifty employees; and (3) do not provide Public Employees Insurance Agency insurance coverage to current employees.
(d) The contribution of the other employers (namely: A county, city or town) in the state; any separate corporation or instrumentality established by one or more counties, cities or towns, as permitted by law; any corporation or instrumentality supported in most part by counties, cities or towns; any public corporation charged by law with the performance of a governmental function and whose jurisdiction is coextensive with one or more counties, cities or towns; any comprehensive community mental health center or comprehensive mental retardation facility established, operated or licensed by the Secretary of Health and Human Resources pursuant to section one, article two-a, chapter twenty-seven of this code, and which is supported in part by state, county or municipal funds; and a combined city-county health department created pursuant to article two, chapter sixteen of this code for their employees shall be the percentage of the cost of the employees' insurance package as the employers determine reasonable and proper under their own particular circumstances.
(e) The employee's proportionate share of the premium or cost shall be withheld or deducted by the employer from the employee's salary or wages as and when paid and the sums shall be forwarded to the Director with any supporting data as the director may require.
(f) All moneys received by the Public Employees Insurance Agency shall be deposited in a special fund or funds as are necessary in the State Treasury and the Treasurer of the state is custodian of the fund or funds and shall administer the fund or funds in accordance with the provisions of this article or as the director may from time to time direct. The Treasurer shall pay all warrants issued by the State Auditor against the fund or funds as the director may direct in accordance with the provisions of this article. All funds received by the agency, including, but not limited to, basic insurance premiums, administrative expenses and optional life insurance premiums, shall be deposited in the West Virginia Consolidated Investment Pool with the West Virginia Investment Management Board, with the interest income a proper credit to all such funds.

NOTE: The purpose of this bill is to provide for a potential subsidy of employer share of PEIA payments by certain small government related entities that are required to pay for retirees eligible for PEIA coverage.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

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