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