Connecticut Seal

General Assembly

File No. 259

    January Session, 2009

Substitute House Bill No. 6582

House of Representatives, March 26, 2009

The Committee on Insurance and Real Estate reported through REP. FONTANA, S. of the 87th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

5-259

Sec. 2

July 1, 2009

New section

Sec. 3

July 1, 2009

New section

Sec. 4

July 1, 2009

New section

Sec. 5

July 1, 2009

New section

Sec. 6

July 1, 2009

New section

Sec. 7

July 1, 2009

New section

Sec. 8

July 1, 2009

New section

Sec. 9

from passage

New section

Sec. 10

from passage

New section

Sec. 11

July 1, 2009

38a-564(4)(B)

INS

Joint Favorable Subst.

 

Agency Affected

Fund-Effect

FY 10 $

FY 11 $

Comptroller

GF - Cost

$245,600

$245,600

State Comptroller - Fringe Benefits1

All Funds –

See Below

See Below

See Below

Department of Revenue Services

GF - See Below

See Below

See Below

Municipalities

Effect

FY 10 $

FY 11 $

Various Municipalities

Savings

Potential

Potential

 

Average Annual Premium Rates

 

Employer

Single Coverage

Employee Share

Family Coverage

Employee Share

National*

Small Firms

$4,826

12%

$12,508

34%

Large Firms

$4,793

16%

$13,096

23%

Regional*

Northeast

$5,033

17%

$13,740

21%

State+

State of Connecticut

$5,844

3%

$15,778

12%

Industry*

State/Local Government

$5,547

12%

$12,843

22%

Local**

CT Cities & Towns

$6,828

10%

$18,660

10%

CT Boards of Education

$5,400

16%

$18,936

13%

Yea

14

Nay

5

(03/10/2009)

TOP

1 The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller on an actual cost basis. The following is provided for estimated costs associated with additional personnel. The estimated non-pension fringe benefit rate as a percentage of payroll is 25.43%. Fringe benefit costs for new positions do not initially include pension costs as the state's pension contribution is based upon the 6/30/08 actuarial valuation for the State Employees Retirement System (SERS) which certifies the contribution for FY 10 and FY 11. Therefore, new positions will not impact the state's pension contribution until FY 12 after the next scheduled certification on 6/30/2010.

2 Health insurance costs are attributed primarily to claims experience. These “loss costs” for state employees and retirees are generally in the range of 80 percent of the premium paid to health plans, but can vary from year to year based upon the health experience of the pool of covered lives.