FISCAL NOTE
Date Requested: March 09, 2017 Time Requested: 01:40 PM |
Agency: |
Public Employees Insurance Agency (PEIA) |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2865 |
Introduced |
HB2887 |
|
CBD Subject: |
Real and Personal Property |
---|
|
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.
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 |
2017 Increase/Decrease (use"-") |
2018 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):
PEIA is unable to determine an estimate of what this increase may be without details pertaining to any retirement incentive packages.
Memorandum
Of 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.
Person submitting Fiscal Note: jason haught
Email Address: jason.a.haught@wv.gov