State employees-sick leave reimbursement.

05LSO-0598.L1

                                                         

FISCAL NOTE

	FY 2006	FY 2007	FY 2008
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
SICK LEAVE CONVERSION	947,764	1,747,919	2,371,490
SICK LEAVE LIABILITY	662,062	1,158,609	1,489,641

 

Sources of expenditure increase:

 

Conversion of unused sick leave balances in excess of 960 hours to monthly health insurance contribution

 

Payment of 100 percent of current balance of unused sick leave at time of separation, not to exceed 480 hours

 

General Assumptions:

 

The unfunded liability for the State will increase due to the increased payout of sick leave balances. Absent an appropriation, the cost of funding the liability will be the responsibility of the individual agency budgets.

 

The liability calculations include Executive, Judicial and Legislative branches of government but does not include the University of Wyoming or the Community Colleges.

 

Liability was calculated as of 12/31/04 using current sick leave balance and current rate of pay.

 

The split between general fund, federal funds, and other funds is unknown, and would depend on position funding within each agency

 

Please see attached spreadsheets for additional information.

 

Sick Leave Conversion

 

-       Any unused sick leave in excess of 960 hours shall be treated as converted sick leave.

-       Rate shall be one month's contribution for each 16 hours of unused sick leave.

-       This conversion equates to 25,576 months of insurance coverage or 2,131 years.

-       Conversion of 16 hours to one month's contribution increases agency liability above most individuals’ sick leave/salary level.

-       Contribution rate for individuals leaving first fiscal period = $453.91. Contribution rate for individuals leaving second fiscal period = $512.92. Contribution rate for individuals leaving third fiscal period = $579.60.

-       Assumed 20% of eligible individuals leave first fiscal year (174), an additional 15% of eligible individuals leave second fiscal year (130), and an additional 10% of eligible individuals leave third fiscal year (87).

-       The state contribution shall be capped by the single premium in place at time of separation. As premiums increase the individual employees will have to absorb the difference.

-       Unfunded liability will occur in agency budgets for unused sick leave in excess of 960 hours. Unfunded liability is estimated at $11,609,032.

 

Sick Leave Liability

 

-         All employees will be affected because the current balance of unused sick leave, up to 480 hours maximum, will be paid out at time of separation. Currently, 50 percent of unused sick leave up to 960 hours is paid out at time of separation.

-         Increased unfunded liability will occur in each individual agency budget. Increase in unfunded liability estimated at $10,778,584.

 

 

Prepared by:   Brian Foster, Dept. of A&I  Phone:   777-6740