|Date Requested:January 27, 2007
Time Requested:11:19 AM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The purpose of this bill is to credit a deceased teacher’s sick leave toward continued insurance coverage for a surviving spouse and other dependents. The bill provides that if a surviving spouse or other dependents are not covered by the deceased spouse’s public employee insurance, that they receive the monetary value of the accumulated sick leave.
There are approximately 1,700 active and retired employees that die each year under the Public Employees Insurance Agency program. It is assumed that if the insurance coverage premium is credited to the deceased employees accumulated leave, all 1,700 would enroll for coverage under the Surviving Dependent portion of the Plan or would be paid the monetary value of the accumulated sick leave.
Presently, the average retiree enters retirement with an average accumulation of Annual and Sick Leave credits to offset four (4) years of insurance premiums. Since all of the 1,700 deaths are not immediately upon retirement, it can be assumed that the total average accumulated sick leave available to the Surviving Dependent would be less than four (4) years. A conservative estimate would be that approximately fifty-one (51%) percent of the accumulated sick leave would eventually transfer to a Surviving Dependent in either the form of Public Employees Insurance Agency premiums or as a lump sum cash payment.
Potential cost to the General Revenue Fund assuming 1,700 Surviving Dependents the first year and 3,400 each subsequent year thereafter is as follow:
FY-2008 $ 5.07 Million
FY-2009 $17.00 Million
FY-2010 $31.73 Million
Total Cost $53.8 Million
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):