Budget Amendment ID: FY2019-S4-335
GIC Surplus Premium Cost Reduction
Messrs. O'Connor and Ross moved that the proposed new text be amended in section 2E, by adding the following new section:-
"SECTION XX. Section 9 of Chapter 32A of the General Laws is hereby amended by striking the second paragraph and inserting thereof the following:-
"If, after applying the above formula, it is determined that the administrative cost allocable to the commonwealth is greater than the dividend, other refund or rate credits received, the entire amount thus received shall, upon authorization by the commission, be paid into the group insurance commission trust fund and shall be allocable (1) to the commonwealth's net share of the premium paid, and (2) to the federal or other funds contributed in the place of the commonwealth's gross share of the premium cost, after deducting the pro rata administrative cost."
Said section is further amended by striking the words "General Fund" in line 40 and inserting thereof the following words:-
"group insurance commission trust fund""