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128th MAINE LEGISLATURE |
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LD 526 |
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LR 1991(03) |
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An Act To
Increase the State Share of the Cost of Health Insurance for Retired Teachers |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Education and Cultural Affairs |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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FY 2017-18 |
FY 2018-19 |
Projections FY 2019-20 |
Projections FY 2020-21 |
| Net Cost
(Savings) |
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General Fund |
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$3,430,082 |
$3,686,307 |
$7,934,829 |
$8,543,064 |
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| Appropriations/Allocations |
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General Fund |
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$3,430,082 |
$3,686,307 |
$7,934,829 |
$8,543,064 |
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| Fiscal Detail
and Notes |
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This bill
includes General Fund appropriations of $3,430,082 in fiscal year 2017-18 and
$3,686,307 in fiscal year 2018-19 to the Retired Teachers' Health Insurance
Program within the Department of Education for the costs associated with
removing the cap on the increase in the State's total cost for retired
teachers' health insurance premiums enacted in Public Law 2013, c. 368 and
increasing the State's contribution to the cost of health insurance for
retired teachers from 45% to 50% from July 1, 2017 to June 30, 2019. |
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This legislation
also requires the State's share to increase from 50% to 55% from July 1, 2019
to June 30, 2021 and then increase again to 60% after June 30, 2021. The cost
of these increases is estimated to be $7,934,829 in fiscal year 2019-20,
$8,543,064 in fiscal year 2020-21 and $13,869,703 in fiscal year 2021-22. |
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The Office of
Fiscal and Program Review utilized data and assumptions provided in the State
and Teachers Retiree Healthcare Plan, June 30, 2016 Actuarial Valuation to
estimate the cost of this legislation. The total cost of this provision over
time will depend on actual health premium cost inflation and the numbers of
retired teachers in the future. |
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