Connecticut Seal

House of Representatives

File No. 995

General Assembly

 

January Session, 2009

(Reprint of File No. 259)

Substitute House Bill No. 6582

 

As Amended by House Amendment

Schedule "A"

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)

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)

Yea

13

Nay

5

(04/06/2009)

Yea

39

Nay

15

(04/15/2009)

Yea

23

Nay

7

(05/12/2009)

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 The 2009 SEBAC agreement granted the state the sole discretion to provide health care benefits on an insured or self-insured basis, or any appropriate combination of funding basis. The agreement was adopted via House Resolution No. 31 and Senate Resolution No. 28.

3 sHB 6365, the budget bill, as favorably reported by the Appropriations Committee, includes savings of $80 million associated with self-funding the state employee and retiree health plans. This is calculated as follows: $70 million one-time savings + $20 million in savings by eliminating the fully-insured risk charge - $10 million to purchase stop-loss insurance.

4 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.