The bill would provide for two or more private educational institutions to form a benefits consortium to establish and fund an employee welfare benefit plan, as defined by the Employee Retirement Income Security Act (ERISA). Such a plan would be established for the purposes of providing medical, surgical, or hospital care benefits; unemployment, disability, or vacation benefits; and other benefits other than pension on retirement benefits. The bill would require any benefits consortium to file with the commissioner of insurance a copy of the articles of incorporation and to comply with the reporting requirements of ERISA.

The bill, if enacted, will have no significant actuarial effect because it does not propose to change the funding or obligations of any public retirement system.