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Monday, January 09, 2006
Ind. Gov't. - Lawmakers' benefits getting close look
"Lawmakers' benefits getting close look: Federal rules may lead to cut in state insurance package" is the headline to a story by Martin DeAgostino in the South Bend Tribune. Some quotes:
INDIANAPOLIS -- New reporting requirements from the federal government are casting light on lifetime health insurance benefits for Indiana lawmakers and their families.For more, see this ILB entry from Jan. 6th, titled "More on: Secrets of health care pact for legislators and staff may be revealed."The scrutiny may force cuts in the generous benefits package that would save taxpayer money and limit political fallout from any debate, according to lawmakers and other officials.
Speaker of the House Brian Bosma, R-Indianapolis, has promised administrative action this year to curb the benefits package for all House members elected this year, and Senate leaders are studying the package to determine their own course of action.
Meanwhile, state Auditor Connie Nass is seeking administration approval to conduct an actuarial study of the benefit, whose lifetime costs remain unknown.
Nass said the study is the only way she can comply with federal accounting standards that require corporations and governments to report all unfunded liabilities involving nonpension post-retirement benefits.
The state already includes pension liabilities in its comprehensive annual financial reports.
"There is any amount of guessing that can be done" about the insurance liability, Nass said, "but no one knows until an actuarial study is done."
Indiana's benefits package for lawmakers is generous by most standards, according to state Sen. Luke Kenley, R-Noblesville.
It provides health insurance for life for lawmakers, their spouses, ex-spouses and children younger than age 23 who live at home.
It also allows the beneficiaries to remain on the state plan once they're Medicare-eligible, unlike most plans that reverse that order.
"We have begun ... to look at this package to see, No. 1, what is the potential liability," Kenley said, "and No. 2, is the package in line with ... public expectations, or should it be modified."
House Minority Leader B. Patrick Bauer, D-South Bend, said the benefits probably exceed private-sector insurance benefits, and may have to be modified based on cost and public perception.
But he said lawmakers should quantify the program's costs before rushing to adjust it.
Nass said lawmakers qualify for the benefits after a minimum five years of service, which is slightly more than two full House terms and one Senate term.
Other legislative employees receive similar benefits, including legislative assistants, clerical staff, lawyers and employees of the Legislative Services Agency.
But Nass said the laws and rules that govern the benefit are so scattered that she cannot fully determine its scope or what year it passed.
"It's a very convoluted law," she said. "It's found in different places. I don't honestly know anyone who knows where it all is."
The benefit has drawn fire in the past, but more on principle than cost. That's because the pay-as-you-go program carries no specific line item in the biennial budget and has not been analyzed for its long-term costs.
Posted by Marcia Oddi on January 9, 2006 08:42 AM
Posted to Indiana Government | Legislative Benefits