TO: | Honorable Craig Eiland, Chair, House Committee on Pensions & Investments |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB1416 by Martinez (Relating to health insurance benefits provided to certain public school retirees and their dependents.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($281,000,000) |
2007 | ($434,000,000) |
2008 | ($434,000,000) |
2009 | ($434,000,000) |
2010 | ($434,000,000) |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
---|---|
2006 | ($281,000,000) |
2007 | ($434,000,000) |
2008 | ($434,000,000) |
2009 | ($434,000,000) |
2010 | ($434,000,000) |
For purposes of this estimate, it is assumed that TRS would offer only one health benefit plan to retirees that would meet all the criteria established by the bill. Assuming that TRS members and school districts continue to contribute to TRS-Care at the same rate as stipulated under current law, the provisions of the bill would cost an estimated $281 million in fiscal year 2006 and $434 million in fiscal year 2007 above the statutorily required state funding for TRS-Care under current law. Costs in fiscal years 2008 through 2010 are likely to increase annually; however, inadequate data is available to produce the analysis for those years.
Under current law for the Employee Retirement System, the state pays 100 percent of the cost of coverage for state employees and 50 percent of the cost of coverage for participating dependents of state employees. If the state were to fund TRS-Care at the same proportion and active members and districts no longer contributed, the cost to the state would be considerably higher.
The provisions of the bill do not preclude a deductible, which could reduce the cost to the state.
Source Agencies: | 323 Teacher Retirement System
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LBB Staff: | JOB, SR, UP, JSc
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