Unlike most health insurance plans, PEIA premiums and deductibles are on sliding scales, based on salary.
"We see people making $25,000 in overtime year after year, and it's not reflected in their PEIA premium," said Allred.
He said it is unfair for a employee with a salary of $60,000 and no overtime to pay more in premiums than a DOH engineer with a base salary of $55,000 and $25,000 in guaranteed overtime.
Auditors ran a random sample of 28 employees who had received more than $25,000 in overtime pay and found that if the overtime pay had been counted toward their salaries they would have paid an additional $40,332 in total PEIA premiums and $6,575 in deductibles for the year.
To conduct the audit, legislative auditors ran a search of all state employee compensation under payment code 171 -- the code for overtime pay -- totaling $5,000 or more for the year.
Auditors found 3,346 state employees from 64 state agencies who had received $5,000 or more of overtime pay for the year.
That included 3,299 employees with between $5,000 and $24,999.99 of overtime, 33 employees between $25,000 and $34,999.99, four employees between $35,000 and $49,999.99, four employees between $50,000 and $69,999.99, five employees between $100,000 and $199,999.99 and one employee in excess of $400,000.
Auditors also found inconsistencies with the five state colleges showing high amounts of overtime pay through what was listed as code 171 pay.
According to the audit, Marshall officials stated that code 171 is used for pay for extra job duties as well as overtime pay, while Fairmont State, Pierpont Community and Technical College, Shepherd University and Blue Ridge Community and Technical College all used the 171 code exclusively or primarily for stipends paid to faculty and staff.
Afterward, House Finance Chairman Harry Keith White, D-Mingo, said he wants to set up an informal committee, with representatives from PEIA, the Department of Administration and the Division of Personnel, to look into issues raised by Monday's audit.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.