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 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 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 years. A conservative estimate would be that approximately fifty-one 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-2009 $ 5.2 Million FY-2010 $17.6 Million Fy-2011 $32.4 Million Total Cost $55.2 Million

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2008 Increase/Decrease (use"-")	2009 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: Chip Myers
Email Address: CLIFFORD.M.MYERS@WV.GOV