A.4 These calculations involve assumptions of growth of the employee groups, salary increases, employee turnover and assumed interest such that the level of employee and employer contributions, subject to the assumptions, will remain constant for many years. Minor corrections may be made on the basis of actual experience. A.5 The postretirement funds are held by the Insurer, but the funds are fully vested with the State and all interest credits on the funds accrue to the State. A.6 The sufficiency of the funds to maintain the postretirement insurance is the responsibility of the GIB. The Insurer does not guarantee the sufficiency of the funds nor their rate of accumulation. B. Local Government Plan Separate postretirement funds for the local government plan are established in the same manner as the State postretirement funds. III. Experience Rating Basis A. General Description A.1 Premium are established annually by the GIB. The Insurer makes recommendations based on recent claims experience of the plan. A.2 The premium rates are established independently for the State and local government plans. A.3 Under the State plan, the State contributes toward the cost of current year term insurance on the basic and supplemental coverages. The employee premium rates for these two coverages are equal. Premium rates for additional insurance are established separately based on experience of that coverage. Employees pay the entire premiums. A.4 Under the local government plan, employers are not required to contribute toward the cost of current year term insurance on any coverage. Employee premium rates for all three coverages are equal at all ages under 70. B. State Plan B.1 The basic, supplemental and additional plans are combined for experience rating. B.2 Currently, the annual experience accounting is performed separately for the preretirement insurance and for the postretirement insurance. All employee premium contributions and a portion of the employer premium contributions are intended to cover the cost of preretirement insurance. The remainder of the employer premium contributions is intended to fund the future cost of postretirement insurance.
A.4 These calculations involve assumptions of growth of the employee groups, salary increases, employee turnover and assumed interest such that the level of employee and employer contributions, subject to the assumptions, will remain constant for many years. Minor corrections may be made on the basis of actual experience. A.5 The postretirement funds are held by the Insurer, but the funds are fully vested with the State and all interest credits on the funds accrue to the State. A.6 The sufficiency of the funds to maintain the postretirement insurance is the responsibility of the GIB. The Insurer does not guarantee the sufficiency of the funds nor their rate of accumulation. B. Local Government Plan Separate postretirement funds for the local government plan are established in the same manner as the State postretirement funds. III. Experience Rating Basis A. General Description A.1 Premium are established annually by the GIB. The Insurer makes recommendations based on recent claims experience of the plan. A.2 The premium rates are established independently for the State and local government plans. A.3 Under the State plan, the State contributes toward the cost of current year term insurance on the basic and supplemental coverages. The employee premium rates for these two coverages are equal. Premium rates for additional insurance are established separately based on experience of that coverage. Employees pay the entire premiums. A.4 Under the local government plan, employers are not required to contribute toward the cost of current year term insurance on any coverage. Employee premium rates for all three coverages are equal at all ages under 70. B. State Plan B.1 The basic, supplemental and additional plans are combined for experience rating. B.2 Currently, the annual experience accounting is performed separately for the preretirement insurance and for the postretirement insurance. All employee premium contributions and a portion of the employer premium contributions are intended to cover the cost of preretirement insurance. The remainder of the employer premium contributions is intended to fund the future cost of postretirement insurance.
Appendices%20A-F.docx