FISCAL NOTE
FUND(S):
2180
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 specify certain terms of participation in the Public Employees Insurance Agency by clarify that dependents must live with the employee and by prohibiting public employees hired on or after July 1, 2009, from applying credit for years of teaching service toward premiums of the Public Employees Insurance Agency upon retirement.
The provision requiring that the dependent live with the PEIA member is to better represent the IRS definition of a dependent child.
The prohibiting of public employees hired on or after July 1, 2009, from applying credit for years of teaching is to close an omission to the change in the law that became effective July 1, 2001, that prevented new hires from converting their sick days for PEIA coverage at retirement and reduce the State's unfunded Other Post Employment Benefits (OPEB) liability.
Employees in higher education exhange years of service, not sick days, for PEIA health insurance coverage at retirement. This bill corrects the oversight and brings the higher education employees into conformity with all other employees hired after July 1, 2001. This change will ensure that the unfunded OPEB liability does not continue to grow for employees hired into the higher education system.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
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):
The savings that will result of the passage of this bill will be realized when those employees hired on or after July 1, 2009, begin to retire.
Memorandum
Person submitting Fiscal Note: J. Michael Adkins, Deputy Director
Email Address: michael.adkins@wv.gov