Retired state employees-insurance benefits.

05LSO-0083.L2

                                                         

FISCAL NOTE

 

This bill contains an appropriation of $9,039,000 from the GENERAL FUND to the Department of Administration and Information.

 

	FY 2006	FY 2007	FY 2008
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
GENERAL FUND	6,064,086	6,359,966	6,567,167

 

Source of expenditure increase:

 

Contribution of $200 per month to group insurance plan for retirees.

 

Assumptions:

 

The $9,039,000 appropriation provides funding for the $200 state contribution for retirees covered beginning August 1, 2005 and ending December 31, 2006. State retiree contribution begins on July 31, 2005.

 

All current rates are in excess of the $200 per month contribution for retirees.

 

The above estimates are based on an initial enrollment of 2,411 retirees with health insurance.

 

The above estimates include all retirees (state, judicial, LSO, University of Wyoming and community colleges).

 

More employees will retire and take insurance program with state contribution.

 

With every incremental increase in state contribution fewer retirees drop insurance coverage due to cost considerations.

 

With the $200 state contribution, the following increases in retiree enrollment are anticipated:

·        First year change in retirement enrollment +369.7

·        Second year change in retirement enrollment +198.8

·        Third year change in retirement enrollment +69.3

• Fourth year change in retirement enrollment +98.5

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(Information provided by Ralph Hayes, Employees Group Ins.; 777-5440)