State Employees Cafeteria Plan Study Commission

WHEREAS, the state of Louisiana currently offers its employees the State Employees Cafeteria Plan (hereafter "the Plan"), which allows those employees to pay for certain healthcare, insurance, and other services by direct payroll deduction;

WHEREAS, such cafeteria plans must meet certain criteria in order for the employees to receive preferential tax treatment from the Internal Revenue Service for funds spent through that plan;

WHEREAS, a properly administered cafeteria plan provides a significant benefit to the state's employees;

WHEREAS, the State Employees Cafeteria Plan (hereafter "Plan") was developed, negotiated, and implemented by the State Employees Group Benefits Board (hereafter "SEGBP Board") subject to approval of the appropriate standing committees of the legislature having jurisdiction over review of agency rules of the State Employees Group Benefits Program (hereafter "SEGBP") as designated by R.S. 49:968(B)(21)(a) or the subcommittee on oversight of such standing committees;

WHEREAS, some state employees have raised a number of concerns regarding the quality of the Plan's products, the premiums of such products, the necessity of the number of products, and the lack of quality control over such products; and

WHEREAS, the interests of the state and its employees can best be served by the creation of a commission composed of members of the legislature, the executive branch, the SEGBP, the SEGBP Board and others to study the issues raised by the state employees members and recommend appropriate solutions to resolve their concerns;

NOW THEREFORE, I, M.J. "MIKE" FOSTER, JR., Governor of the state of Louisiana, by virtue of the authority vested by the Constitution and the laws of the state of Louisiana, do hereby order and direct as follows:

SECTION 1: The State Employees Cafeteria Plan Study Commission (hereafter "Commission") is created and established within the Executive Department, Office of the Governor.

SECTION 2: The duties and functions of the Commission shall include, but are not limited to, the following:

A. Analyzing the current Plan, and examining options for improving it;

B. Studying the feasibility of improving the Plan by examining best practices of other local, state, federal, and privately funded cafeteria plans;

C. Examining all reasonable options to improve the efficiency and cost effective administration of the Plan, including: program oversight, internal administration, and privatization;

D. Establishing criteria for vendor participation, as well as quality control measures; and

E. Conducting public hearings to receive input from SEGBP members, stakeholders and others that are impacted or affected by the Plan.

SECTION 3: The Commission shall submit a comprehensive written report to the governor by December 31, 2000, which addresses the issues set forth in Section 2.

SECTION 4: The Commission shall be composed of nine (9) members who shall be appointed by, and serve at the pleasure of, the governor. The membership of the Commission shall be selected as follows:

A. The commissioner of administration, or the commissioner's designee;

B. The chairman of the State Employees Group Benefits Board of Directors, or the chairman?s designee;

C. The chief executive officer of the State Employees Group Benefits Program, or the chief executive officer's designee;

D. The commissioner of Insurance, or the commissioner's designee;

E. One (1) member of the Louisiana House of Representatives;

F. One (1) member of the Louisiana Senate;

G. One (1) current state employee who is a member of the SEGBP;

H. One (1) director of human resources management from a state college or university; and

I. One (1) private corporation human resource representative

SECTION 5: The governor shall select the chair of the Commission. The membership of the Commission shall elect all other officers.

SECTION 6: The Commission shall meet at the call of the chair.

SECTION 7: Support staff for the Commission and facilities for its meetings shall be provided by the State Employees Group Benefits Program.

SECTION 8: All departments, commissions, boards, agencies, and officers of the state, or any political subdivision thereof, are authorized and directed to cooperate with the Commission in implementing the provisions of this Order.

SECTION 10: This Order is effective upon signature and shall continue in effect until December 31, 2000, or until amended, modified, terminated, or rescinded by the governor, or terminated by operation of law.

IN WITNESS WHEREOF, I have set my hand officially and caused to be affixed the Great Seal of Louisiana, at the Capitol, in the city of Baton Rouge, on this 25th day of August, 2000.

M.J. "Mike" Foster, Jr.

Fox McKeithen
Secretary of State