FISCAL NOTE
FUND(S):
2541
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 provide options for billing the employer annual required contribution to the West Virginia Retiree Health Benefit Trust Fund. The bill requires the Public Employees Insurance Agency to bill for only the minimum annual employer payment in fiscal year 2010. For fiscal year 2010 this will alleviate certain OPEB deficits accrued by county school boards and other local entities.
Passage of this legislation will have minimal fiscal impact on the West Virginia Retiree Health Benefit Trust Fund. It is anticipated that Annual Required Contribution (ARC) revenues in the amount of $2.7 million will not be collected from employers in FY-2010. Investment earnings will not be realized in FY-2010 due to non-collection of the ARC revenue.
FY-2010 billings have been sent to employers who in turn have remitted $1 million in ARC payments to the West Virginia Retiree Health Benefit Trust Fund. The ARC premiums collected for FY-2010 would be refunded to the appropriate employers.
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):
Memorandum
Person submitting Fiscal Note: Chip Myers
Email Address: CLIFFORD.M.MYERS@WV.GOV