PEIA proposes $120M in benefit cuts for employees, retirees
By Phil Kabler, Statehouse Reporter for the Gazette-Mail
With no likelihood of additional funding from the West Virginia government, and with its Reserve Fund already spent down to the minimum balance, the Public Employees Insurance Agency has no options but to make "draconian" cuts in benefits for active employees and retirees, executive director Ted Cheatham told the PEIA Finance Board on Thursday.
The board Thursday adopted a proposed 2016-17 plan that would cut benefits for active employees by $82.96 million, and cut retiree benefits by $40.99 million, primarily through sharply higher deductibles and out-of-pocket maximums.
It also would increase retiree premiums by 8 percent, and increase premiums for non-state employees (participating cities, counties, and governmental agencies) by 3 percent.
"These are fairly draconian cuts to the plan that are being made," Cheatham said. "We can't tweak $2 here or there to get where we need to be."
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PEIA proposes $120M in benefit cuts for employees, retirees By Phil Kabler, Statehouse Reporter for the Gazette-Mail
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