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Martin O'Malley, Governor
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H.B. 1247
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(4) any funding solution proposed by the Commission will likely
include some direct State appropriation, with the Commission pursuing any and all
viable funding sources, including the possibility of employee contributions during
active service;
(5) the Commission should consider the actual impact any changes in
the State Employee and Retiree Health and Welfare Benefits Program will have on
the State's annual required contribution and should look for appropriate cost
efficiencies that maintain the quality health care coverage the State provides for
retirees; and
(6) special consideration should be given to State retirees who are
receiving benefits or State employees who have accrued at least 16 years of service
with the State and have vested for State retiree health benefits under current law,
recognizing that while there may be no legal obligation on the part of the State to
provide retiree health care benefits to these individuals, the Commission should view
the commitment to provide retiree health care benefits to these individuals as an
ethical one.
(e) The Commission shall:
(1) contract with an actuarial consulting firm to:
(i) commission an actuarial valuation that illustrates the
State's annual required contribution as both a fixed dollar amount and also as a
percentage of payroll; and
(ii) provide ongoing services to the Commission throughout its
existence;
(2) review the specific legal obligations of the State to provide retiree
health benefits to existing retirees, fully vested employees, active employees, and new
employees;
(3) study the cost drivers associated with the State's unfunded retiree
health care liabilities which provide the basis for the unfunded accrued liability that is
estimated to be as high as $20,400,000,000 as well as the ongoing normal costs
associated with the retiree health care liabilities;
(4) review the current health care benefit levels for both State
employees and retirees and how the benefits compare to benefits provided under
Medicare, by private employers, and by other public employers, with a particular
emphasis on whether the various levels are appropriate, equitable, and sustainable;
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- 4849 -
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