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F I S C A L I M P A C T R E P O R T

SPONSOR Lujan

DATE TYPED 02/09/2005 HB 718

SHORT TITLE

Public Employee Benefit Interim Committee

SB

ANALYST Moser

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$100.0

Non-Recurring Legislative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department (PED)

Retiree Healthcare Authority (RHCA)

Public School Insurance Authority (PSIA)

Public Employee Retiree Authority (PERA)

SUMMARY

Synopsis of Bill

House Bill 718 Public Employee Benefit Interim Legislative Committee

appropriates $100 thou-

sand from the legislative fund to create the Employee Benefits Oversight Committee (EBOC).

This will be a joint interim committee that is to meet to review the financial solvency of the re-

tirement programs administered by PERA and the ERB, and the benefits programs administered

by the retiree health care authority, the public school insurance authority and state group benefits

programs.

Upon LCS approval of a work plan and budget, the interim committee will examine

statutes, constitutional provisions, regulations and court decisions governing the programs and

their actuarial health, present and future costs, and projected funding deficits. The committee is

to report its findings and recommendations to LCS by December 15.

The bill carries and emer-

gency clause.

House Bill 718 -- Page 2

Significant Issues

The EBOC shall examine the statutes, constitutional provisions, regulations and court decisions

governing the retirement programs and benefit plans and the actuarial health of the funds sup-

porting the programs, the present and future costs of maintaining the programs and the extent of

any forecasted funding deficits

The committee shall make a report of its findings and recommendations to the NMLC by De-

cember 15 preceding the second session of the 47th legislature for its consideration.

FISCAL IMPLICATIONS

The appropriation of $100 thousand contained in this bill is a non-recurring expense to the legis-

lative fund. Any unexpended or unencumbered balance remaining at the end of FY06 shall revert

to the legislative cash balances.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HB 274, introduced on behalf of the LFC, requests an actuarial analysis of the retirement funds

administered by PERA and the ERB.

OTHER SUBSTANTIVE ISSUES

PSIA covers all public school districts with the exception of APS, all charter schools, and certain

educational entities. Since the public school support recommendation for insurance costs in-

cludes both PSIA’s employee benefits as well as APS, it is suggested by PSIA that the employee

benefits program of APS be included in the EBOC’s oversight and study.

GM/yr/njw