FISCAL NOTE
Date Requested: January 11, 2018 Time Requested: 02:22 PM |
Agency: |
Public Employees Insurance Agency (PEIA) |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1846 |
Introduced |
HB2887 |
|
CBD Subject: |
Education (Higher), Retirement |
---|
|
FUND(S):
RHBT
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to authorize Boards of Governors of institutions of higher education to develop retirement and incentive packages.
Retiree health coverage is currently subsidized by active health coverages at a rate of 30%. Therefore, any increase to subsidy eligible retiree enrollment could increase costs to the plans’ active enrollees. However, PEIA is unable to determine an estimate of what this increase may be without details pertaining to any retirement incentive packages.
Of more concern to PEIA is addition of the proviso language in §18B-1-1d(d) as this appears to allow higher education employers an exclusion in paying for any healthcare benefits of incented retirees. With this language, higher education employers would be permitted to not pay for healthcare benefits received upon retirement. This would result in an increase in the level of subsidization for incented retirees. This additional subsidization would be paid by the active membership of the plan.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2018 Increase/Decrease (use"-") |
2019 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov