2019 Session

Budget Amendments - HB1700 (Committee Approved)

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Decrease Amortization Period to Address Retiree Health Credit Unfunded Liability

Item 474 #1h

Item 474 #1h

First Year - FY2019 Second Year - FY2020
Central Appropriations
Central Appropriations FY2019 $0 FY2020 ($4,296,120) GF

Page 486, line 12, strike "$239,537,205" and insert "$235,241,085".

Page 489, line 55, after "30 years." insert:

", except beginning in fiscal year 2020 the state employee retiree health credit and the public school teacher amortization period shall be reduced by 5 years."  

Page 490, line 3, strike the second "1.17%" and insert "1.31%".

Page 490, line 4, strike ", excluding State Police Officers".

Page 490, strike lines 5 through 6.

Page 490, line 7, strike the second "1.20%"  and insert "1.34%".

Page 490, strike lines 14 through 17.

Page 490, strike lines 31 through 52 and insert:

"7. In addition to the amounts cited in paragraph K.4. of this item, $3,850,043 the second year from the general fund is provided to support an increase in the contribution rate for the state employee retiree health insurance credit from decreasing the amortization period of the legacy unfunded liability by five years.”  

Page 491, strike lines 1 through 3.

Page 491, line 6, strike "except as provided in paragraph  L.3. of this Item,"

Page 491, strike lines 14 through 36.


(This amendment strikes the proposal included in the introduced budget, at a cost of $8.1 million from the general fund, to increase the retiree health credit by $2.00 per year of service for members of SPORS and VaLORS and and $3.50 per year of service for deputy sheriffs and redirects a portion the funding, approximately $3.85 million from the general fund to decreased the amortization period for the legacy unfunded liability for state employee retiree health credit from 25 years to 20 years. While the amortization change will increase cost in fiscal year 2020 it will save approximately $330 million over the life of the amortization.)