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.
(1) Premium and claim amounts reflect the current premium of $2.50 monthly and the current benefit levels of $10,000 for spouse and $5,000 for dependent children, all per unit of coverage. F.2 Local Government Employees: Spouse and Dependent Life Insurance: Year Contracts in Force Insurance in Premiums Collected Claims Paid 1999 32,808 $771,135,000 $1,169,133 $1,432,740 2000 33,468 794,480,000 1,178,608 1,708,753 2001 34,885 829,425,000 1,213,917 1,605,553 2002 35,453 845,205,000 1,258,293 1,443,830 2003 35,366 844,175,000 1,269,424 1,344,795 2004 35,710 855,995,000 1,279,082 1,186,010 2005 36,075 868,055,000 1,297,899 1,446,228 2006 36,395 877,340,000 1,305,797 1,346,196 2007 36,861 893,160,000 1,333,177 1,710,331 2008 36,905 895,485,000 1,337,106 1,617,363 (1) Premium and amounts reflect the current premium of $1.75 monthly and the current benefit levels of $10,000 for spouse and $5,000 for dependent children, all per unit of coverage. V. Pooled Amounts as of December 31, 2009 Volume in excess of $500,000 by age: Age Local State Total 17 - - 0 18 - - 0 19 - - 0 20 - - 0 21 - - 0 22 - - 0 23 - - 0 24 - - 0 25 - - 0 26 - - 0 27 - - 0 28 - 70,000 70,000 29 - - 0 30 - 345,000 345,000 31 - 855,000 855,000 32 - 245,000 245,000