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 that nonstate retired employees who have worked for their last nonstate employer for less than five years are responsible for their entire premium cost for coverage.
This bill closes a loophole in the ability for the Public Employees Insurance Agency (PEIA) to bill for a certain small class of retirees premiums. WV Code 5-16-22 mandates that employers must contribute to their retirees PEIA premiums whether the employer is participating in PEIA or not.
There is an exemption from this employer contribution requirement however, for retirees that worked for the employer and participated in PEIA for less than five years. The exemption does not state who must pay the short fall in premiums for these retirees.
S.B.-447 would clarify that the retiree subject to the exemption must pay the entire premium since their employer is not contributing.
The bill would have a positive financial impact to PEIA, however at this time it is unable for PEIA to calculate the number of retirees in this class.
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 |
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