FISCAL NOTE

Date Requested: February 18, 2016
Time Requested: 03:07 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2780 Introduced SB631
CBD Subject: Education (Higher), Retirement


FUND(S):

2541

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



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. The fiscal impact of this bill on the PEIA retiree health plan would be dependent upon many factors including the details of the incentive packages, the age, health and years of service of the eligible employees and the rate of acceptance. Without this specific information, an accurate fiscal estimate on the plan would be difficult. However, absent this detail, any actions by an employer to entice early retirement may result in increased retiree healthcare benefit costs as the assumption for entry age could be reduced. By reducing the entry age assumption, a retiree will be assumed to have a longer period as a non-Medicare retiree. This expansion of non-Medicare retiree coverage could result in more healthcare costs incurred during retirement. These increased costs will be passed on to either the employer or retiree (if the retiree has leave or teaching credits convertible to health insurance premiums, the increase goes to the employer until the conversion balance is utilized.)



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
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):






Memorandum






    Person submitting Fiscal Note: Jason Haught
    Email Address: jason.a.haught@wv.gov