PEBP board hears Siegel analysis showing large reserve gap; members call for phased fixes rather than one‑year 84% premium hike

The Public Employees Benefits Program Board on Jan. 20 reviewed an actuarial trend analysis from Siegel that showed a widening gap between the program’s funding target and projected assets, prompting a unanimous call among board members and public commentators to pursue a phased solution rather than a single, disruptive premium hike.

Siegel principal Richard Ward told the board the funding target (the sum of incurred‑but‑not‑reported liability and a catastrophic reserve defined as 45 days of claims) should be treated as a target range rather than a fixed point. Using plan‑year '26 claims and the board’s current reserve methodology, Ward said a reasonable target range would be roughly 20–30% of annual claims (about $100 million–$150 million). By contrast, Siegel’s slide comparing the funding target (about $139 million) with projected assets (about $57 million) produced an $82 million shortfall for plan year '27. Ward emphasized the slide was illustrative and not a recommendation; it showed that closing that entire gap in one year with a uniform employee premium increase would equate to roughly an 84% raise in premiums.

“That's simply illustrative to show the magnitude of…