Fri October 12, 2012
LGC Will Return $22.5 Million Surplus
The Local Government center will return twenty-two-and-a-half million dollars to its members. The board will return the money as a contribution holiday payment, which lowers the amount members pay over the coverage year.
New Hampshire LGC is a nonprofit organization that manages health insurance pools for public employees and retirees in New Hampshire.
In August, a hearings officer ordered the organization to return more than 50-million-dollars to New Hampshire cities and towns. The LGC has appealed that order to the N.H. Supreme Court.
LGC Executive Director Maura Carroll says the surplus return is not tied to that ruling. But, instead reflects the board’s less conservative approach to managing finances.
“Now, we’ve not had a lot of input from our members. We expect we will, once it gets implemented.”
In the August ruling, the hearings officer agreed with state regulators that the LGC held on to too much money in reserve and improperly funneled money from one line of business to another.