|Date Requested:January 14, 2010
Time Requested:01:20 PM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| SB 48 extends Permanent Total Disability award benefits to claimants for life. The cost to state government for the proposal is estimated at $184.4 million. The $184.4 million is the actuarial projected increase to the Old Fund liability for the extension of benefits.
Old Fund liabilities are claims with dates of injury or last exposure on or before June 30, 2005. The $184.4 million estimate does not include any retroactive benefits for inactive claims. Inactive claims are those claimants whose benefits have already been terminated due to age.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||184,400,000||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
Projections for the cost of proposed benefit changes were provided last year by outside actuarial firm (E&Y). The projections have been reviewed by current contracted actuarial firm (Pinnacle) and they have affirmed that they are comfortable with the estimate given that only 1 year has elapsed since originally provided.