HOUSE CONCURRENT RESOLUTION NO. 88
(By Delegates Kominar, Paxton, Campbell, Shaver, Spencer,
Anderson and Duke)
(Introduced March 8, 2010)
Requesting that the Joint Committee on Government and Finance
authorize a study of the West Virginia Public Employees
Insurance Agency and participating employer liabilities for
other post employment benefits.
Whereas, The West Virginia Public Employees Insurance Agency
estimated the actuarial accrued liability for other post employment
benefits to be over $7 billion on June 30, 2009; and
Whereas, The West Virginia Public Employees Insurance Agency
projects the actuarial accrued liability to be $7.8 billion and
$8.7 billion for State Fiscal Years 2010 and 2011, respectively;
and
Whereas, This liability is shared by all employers
participating in the Public Employees Insurance Agency insurance
pool, including state agencies, state colleges and universities,
county school boards and many non-state employers; and
Whereas, This liability is chiefly comprised of the expected
costs of perpetuating retiree healthcare subsidies and providing
for the conversion of unused, accrued annual and sick leave into
prepaid insurance premiums upon retirement; and
Whereas, Active plan participants also share in the cost of
subsidizing retirees and leave conversion benefits, with
differential or no leave conversion benefits and uncertain subsidy
benefits for themselves; and
Whereas, Public retirees have fixed incomes and ever increasing
healthcare needs; and
Whereas, Healthcare spending continues to grow much faster than
the overall economy, with healthcare spending representing just
7.2% of Gross Domestic Product in 1965, 16% today and a projected
20% by 2016; and
Whereas, County boards of education have initiated legal action
regarding the determination of their rightful portions of the
liability; and
Whereas, Participating non-state employers take many forms and
purposes, often having very dissimilar leave conversion policies,
staffing and retirement patterns from most other plan employers,
and their uniqueness has yet to be fully appreciated or quantified
in actuarial valuations, allocations and analysis; and
Whereas, Actuarial information concerning these other post
employment benefits is both enlightening and incomplete, especially with respect to the many major policy options that are currently
under consideration; and
Whereas, Issues of cost and access to healthcare are undeniably
matters of life and death, health and wealth to affected persons;
and
Whereas, The taxpayers of West Virginia cannot afford to
maintain the status quo with respect to these liabilities;
therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby
requested to aut
horize a study of the West Virginia Public
Employees Insurance Agency and participating employer liabilities
for other post employment benefits; and, be it
Further Resolved, That the Joint Committee on Government and
Finance report to the Regular Session of the Legislature, 2011, on
its findings, conclusions and recommendations, together with drafts
of any legislation necessary to effectuate its recommendations;
and, be it
Further Resolved, That the Legislative expenses necessary to
conduct this study, to prepare a report and to draft necessary
legislation be paid from legislative appropriations to the Joint
Committee on Government and Finance.