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GIC CFO flags $153M identified funding exposure after FY25 shortfalls
Summary
CFO Jennifer Hewitt reported a combined identified funding exposure of about $153 million tied to a State Retiree Benefits Trust Fund gap and an enrollee‑account deficit that carried into FY26; staff are coordinating with Administration & Finance and will present refined projections to the Commission.
Jennifer Hewitt, the GIC's chief financial officer, told commissioners that staff have identified two additional FY25/FY26 funding exposures that increased the Commission's known budget risk. The State Retiree Benefits Trust Fund (SRBTF) faces an approximate $100 million shortfall; recently dedicated excess capital gains revenues have filled part of it but a $42 million gap remains.
Hewitt also said the enrollee account (which holds active employees’ and retirees’ premium contributions) ended FY25 with about a $54 million deficit because overall FY25 shortfalls were larger than anticipated and depleted that account. The two exposures together create an identified funding exposure of $153 million that the GIC has raised with Administration & Finance for incorporation into broader budget planning.
Hewitt explained that because GIC invoicing splits payments between the state employer account and the enrollee account, there is limited in‑year ability to replenish enrollee revenue streams other than by annual statutory premium changes. Staff have taken administrative steps to curb spending and will refine monthly spending projections as rebate and CMS credits are realized.
Commissioners acknowledged the sobering picture and thanked the CFO for rapid onboarding and the staff for near‑term steps; Hewitt said staff will bring more detailed month‑by‑month projections to a future meeting.
