Also Tuesday, an audit of the Public Employees Insurance Agency recommended that PEIA stop allowing West Virginia University to escrow PEIA premiums for employees who are paid on a nine- or 10-month salary schedule.
The audit found that PEIA allows WVU to deposit employer premium payments into an escrow account during the months when those employees are not receiving pay.
The payments, which cover partial-year employees at the main campuses, as well as branch campuses at WVU-Parkersburg, WVU-Tech and Potomac State, totaled about $2.7 million for fiscal 2010-11.
Payments from the escrow account were submitted to PEIA in September 2011.
The audit concludes that the arrangement allowed WVU to collect some $34,000 in interest earnings on the funds in the escrow account, interest that could have been earned by PEIA had it required monthly premium payments for the partial-year employees.
The audit also recommended that the PEIA change the way it credits state agencies for premium overpayments by individual employees.
Under the current "use all" option, an agency may issue the credit to the employee, apply it to other employee's account, or use it to reduce the employer PEIA premium payment.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.