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 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.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2010
Increase/Decrease
(use"-") |
2011
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):
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.
Memorandum
Person submitting Fiscal Note: Michael D Riley
Email Address: Michael.Riley@wvinsurance.gov