FISCAL NOTE
FUND(S):
7162
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.
SB 623 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 extending of benefits will increase the state liability amount of the Old Fund.
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.
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 |
184,400,000 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
184,400,000 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The estimated cost to the Old Fund liability is $184.4 million.
The increased liability would increase the current deficit from $1,510,000,000 to $1,694,400,000.
Projections for cost of proposed benefit change provided by outside actuarial firm (E&Y).
Memorandum
An increase in the total cost of workers' compensation insurance is also expected to cover the increase in benefits. However, projections for this increase are not available at the time of this fiscal note filing. We will update the note as additional numbers come available.
Person submitting Fiscal Note: Michael D. Riley
Email Address: Michael.Riley@wvinsurance.gov