FISCAL NOTE
Date Requested: January 31, 2023 Time Requested: 03:58 PM |
Agency: |
Public Employees Insurance Agency (PEIA) |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3319 |
Introduced |
SB520 |
|
CBD Subject: |
State Personnel |
---|
|
FUND(S):
PEIA Basic Insurance Fund
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 remove the decrease in the amount of group life and accidental death insurance to which an employee is entitled to when the individual reaches 65 years of age. Active employees of a participating employer with PEIA, with health insurance, must enroll for basic life insurance. Basic life insurance premiums are an employer-paid benefit for active employees of State agencies, colleges, universities, and county boards of education.
The premium charged for $10,000 of basic life coverage is $1.76. The basic life benefit is reduced from $10,000 in coverage to $6,500 at age 65 and to $5,000 at age 70. The premium rate charged for $10,000 basic life insurance will increase by approximately $0.20 cents if this bill passes. There will be no fiscal impact to PEIA, since this is as employer-paid benefit, however the impact to all employers combined is $252,000 in additional expense annually.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2023 Increase/Decrease (use"-") |
2024 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):
There will be no fiscal impact to PEIA, since this is as employer-paid benefit, however the impact to all employers combined is $252,000 in additional expense annually.
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: April Taylor
Email Address: aprilataylor@gmail.com