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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 25 – Termination Benefits
Sample (Illustrative, may not tie to exhibits)

Health Care Related Termination Benefits

Healthcare continuation under the Consolidated Omnibus Budget Reconciliation Act (COBRA) is provided for both voluntary and involuntary terminations. COBRA members are eligible to remain in the Group Benefits Program for 18 months, or 29 months if disabled. Dependents are eligible to remain in the program for 36 months. The cost of COBRA benefits for the Sample Agency’s self-insured plan for fiscal 20CY is shown below:

Condition Amount

* The premium revenue is the premium received from COBRA participants net of a 2 percent administrative fee charged by the carrier that performs billing and collection functions.

** The 2 percent administrative fee revenue is the administrative fee paid by the participants who elect continuation coverage pursuant to COBRA.

Number of Participants 3,582
Premium Revenue* $ 5,152,634.89
2 Percent Administrative Fee Revenue** 103,052.70
Total Revenue for COBRA $ 5,255,687.59
Less Claims Paid (10,567,982.64)
Cost to State ($ 5,312,295.05)

Non-Health Care Related Termination Benefits

Sample Agency announced an early retirement incentive for fiscal 20CY. The early retirement incentive for those eligible employees included a one-time payout of $XXX that was paid on payrolls dated on or before Aug. 31, 20CY.

Sample Agency also had involuntary terminations. These employees were given career counseling and outplacement services in addition to $XXX in severance pay that was paid on payrolls dated on or before Aug. 31, 20CY.

Glenn Hegar
Texas Comptroller of Public Accounts
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