Why is the retiree subsidy reduced from the FY09 levels ($410 to $317) when the actives subsidy is flat for that period?
The base subsidies for the current biennium did not reflect the change in commingling policy approved in SB544. That’s because the bill was not approved until the very end of the session. So, when we calculated the “flat” subsidy for the upcoming biennium, we combined actives and retirees. The end result of the change in subsidy and the change in percent of subsidy towards premiums is the same for both retirees and actives (about a 5% reduction in the composite rate).
