Loading ...
Sorry, an error occurred while loading the content.

Re: [wccusdtalk] Fwd: Health benefits information

Expand Messages
  • Charley Cowens
    Tammy- The GASB45 number stated in the press release is $40 million. I believe Marsha was just talking about this fiscal year. Charley Cowens
    Message 1 of 4 , Apr 28, 2005
    • 0 Attachment
      Tammy-

      The GASB45 number stated in the press release is $40 million. I
      believe Marsha was just talking about this fiscal year.

      Charley Cowens

      On 4/28/05, Tammera Campbell <tammeracampbell@...> wrote:
      > Marsha,
      > You have also not stated that this district under specific accounting rules must put aside $70 million by 2007 for their lifetime benefit liability.
      > Tammy
      >
      >
      > Marsha Williamson <mswilliamson@...> wrote:
      > I would like to put the previous posting regarding WCCUSD health
      > benefits information in simple terms that everyone can understand:
      >
      > The district's total Operating Budget for '04/'05 was around$270
      > million, with Health and Welfare benefits for current and retired
      > employees making up nearly 13% of the district's budget, or about $34
      > million.
      >
      > This is simply a statement of fact with regard to where the WCCUSD's
      > money goes.
      >
      > Sincerely,
      > Marsha Williamson
      >
      > Cathy Travlos wrote:
      >
      > >
      > > Greetings. This information sheet on health benefits is also posted
      > > at:
      > >
      > >
      > > http://www.wccusd.k12.ca.us/negotiations/PDF/04_21_05_health_facts.pdf>http://www.wccusd.k12.ca.us/negotiations/PDF/04_21_05_health_facts.pdf
      > >
      > >
      > >
      > > ====================
      > >
      > > West Contra Costa Unified School District
      > >
      > > FACTS ABOUT HEALTH BENEFITS
      > > Published by the Office of Fiscal Services ˇ April, 2005
      > >
      > > Health Care Insurance Premiums Skyrocket
      > > * School districts across California have been hard hit by
      > > escalating
      > > health care costs. Statewide, premiums have shot up 129% in the last
      > > five
      > > years.
      > > * In WCCUSD, premiums have skyrocketed by 129% from 1999 to 2005,
      > > and
      > > by more than 70% since 2003. The 2004-05 estimated health and welfare
      > >
      > > benefits expense for active and retired employees is $34 million.
      > > * In the past year alone, WCCUSD health benefit costs have
      > > increased by
      > > more than $3.7 million, and we project a $4.2 million-or 14%-cost
      > > increase
      > > in next yearís benefits.
      > > WCCUSD Benefit Package
      > > * WCCUSD is one of only a few districts in the state to provide
      > > health
      > > care benefits for life, and has the second most generous retirement
      > > package
      > > in the state.
      > > * The district has fully covered the cost of health insurance
      > > premiums
      > > under the Kaiser HMO and various alternate plans since the districtís
      > > unification in 1965. The current alternate plan available through
      > > CalPERS
      > > is Blue Shield HMO.
      > > * At present, the district fully funds the higher of Blue Shield
      > > HMO or
      > > Kaiser HMO. Employees may also choose a PPO program; however, if the
      > > premium is higher than the HMO premium they must pay the difference.
      > > * In 2005, for the first time, PERSChoice PPO is less expensive
      > > than
      > > the Blue Shield HMO and is fully covered by the district. The more
      > > liberal
      > > PERSCare program is more expensive and requires an employee
      > > contribution.
      > > * District employees choosing Blue Shield HMO, Kaiser HMO or
      > > PERSChoice
      > > PPO in the Bay Area region contribute nothing toward health premiums
      > > in 2005.1
      > > * Part-time certificated employees are eligible to receive a
      > > district
      > > contribution toward benefits proportionate to the FTE they are
      > > working. Part-time classified employees working 4 hours per day or
      > > more
      > > receive 100% contribution toward health benefits. Classified
      > > employees
      > > working less than 4 hours per day are not eligible for district
      > > contribution toward health benefits.
      > >
      > >
      > > Budget Impacts of Escalating Health Care Costs
      > > * Health costs are increasing faster than WCCUSD revenues.
      > > * A new opinion issued by the Governmental Accounting Standards
      > > Board
      > > (GASB 45) requires governmental agencies, including school districts,
      > > to
      > > project future retiree health care costs, recognize these costs in
      > > their
      > > financial statements, and report how these costs will be funded.
      > > * WCCUSD's current unfunded liability for its retiree health
      > > benefits
      > > package is $952 million. Beginning in 2007-08, the district must
      > > report
      > > the funding of this liability in its financial statement over a
      > > 30-year
      > > period, resulting in an additional expense of approximately $40
      > > million per
      > > year.
      > > * If the district cannot restrict the flow of money out of its
      > > budget
      > > to the health care insurance industry, it will have to look to other
      > > cost
      > > saving measures in order to balance the budget and prevent state
      > > takeover.
      > > * Since over 80% of the district budget is in the form of salaries
      > > and
      > > benefits to employees, the lionís share of cuts will have to come in
      > > the
      > > form of personnel reductions.
      > > * Since 1999, WCCUSD teachers have received a 23.5% increase in
      > > salaries. Our district has higher total compensation packages than Mt.
      > >
      > > Diablo, and as of July 2005 we will have higher teacher salaries than
      > > Oakland.
      > > * If we cannot control health care costs, we will not be able to
      > > strengthen teacher salaries and the education of our children.
      > > * If the state takes over we will lose local control of our
      > > schools and
      > > the ability to negotiate staff salaries.
      > >
      > >
      > > WCCUSD Proposal: Benefits Will Continue to Be Among Stateís Most
      > > Generous
      > > * We are not asking staff to give up health benefits. We are
      > > asking
      > > that, like most school districts and companies, staff pay a small
      > > share of
      > > their own health care costs.
      > > * The district is proposing to cap its health benefit contribution
      > > at
      > > the current Kaiser HMO rate, with future increases subject to
      > > negotiation.
      > > * The districtís proposal includes three main items:
      > > * Set the districtís contribution rate at the current Kaiser 2005
      > > single, two-party, and family rates for current employees. This
      > > proposal
      > > would result in cost sharing between the district and employees, a
      > > system
      > > that currently exists in almost all of the school districts in
      > > California.
      > > * Find a cost-effective alternative to CalPERS, or adopt a vesting
      > >
      > > schedule for future employees to contain future retiree benefits
      > > costs.
      > > * Increase cash-in-lieu from $75 to $125 per month to encourage
      > > employees to take cash in lieu of benefits to the extent they have
      > > access
      > > to coverage through a spouse or domestic partner.
      > > * The bottom line: The districtís proposal would provide the
      > > following
      > > annual contributions toward health benefits: Employee only, $4,256.28;
      > > Two
      > > Party, $8,512.56; Family, $11,066.28.
      > > * Statewide, over 95% of all school districts have already capped
      > > their
      > > contributions to health care benefits at significantly lower amounts
      > > than
      > > WCCUSD is proposing.
      > > __________________
      > > (1) Employees in the HMO plans pay $10 co-payments when seeing
      > > the
      > > doctor and prescription co-payments of $5 (generic), $15 (formulary
      > > non-generic), and $45 (non-formulary) when obtained from local
      > > pharmacies.
      > > Employees in the PPO program have a deductible of $500 for
      > > single
      > > coverage and $1000 for two-party and family coverage, pay $20
      > > co-payments
      > > when seeing the doctor, and $20 co-payments for most other services
      > > under
      > > the plan. The rates for filling a first-time prescription are $5
      > > (generic), $15 (formulary non-generic), and $45 (non-formulary) when
      > > obtained from local pharmacies. If an employee in the PPO plan
      > > doesnít use
      > > the planís mail order pharmacy when refilling a prescription, the
      > > co-payments increase to $10, $25, and $75.
      > >
      > > # # #
      > >
      > >
      > >
      > > ---------------------------------------------------------------
      > > Yahoo! Groups Links
      > >
      > > * To visit your group on the web, go to:
      > > http://groups.yahoo.com/group/wccusdtalk/
      > >
      > > * To unsubscribe from this group, send an email to:
      > > wccusdtalk-unsubscribe@yahoogroups.com
      > >
      > > * Your use of Yahoo! Groups is subject to the Yahoo! Terms of
      > > Service.
      > >
      >
      > [Non-text portions of this message have been removed]
      >
      > ---------------------------------
      > Yahoo! Groups Links
      >
      > To visit your group on the web, go to:
      > http://groups.yahoo.com/group/wccusdtalk/
      >
      > To unsubscribe from this group, send an email to:
      > wccusdtalk-unsubscribe@yahoogroups.com
      >
      > Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
      >
      > Tammera (Tammy) E. Campbell
      > Pinole CARE
      > Pinole Valley High Safety Chair
      > Pinole Valley High School Boosters
      > Pinole Middle School Site Council President
      > Pinole Middle School Measure D Committee
      > 2668 Alhambra Way
      > Pinole, CA 94564
      > Home: 510-223-3857
      > Work: 510-486-4460
      > Fax: 510-222-4643
      > Pager: 510-425-3192
      > Email: Tammera.Campbell@...
      >
      > Following are contacts for other email lists to consider joining:
      > Ellerhorst Elementary School: ellerhorst_etree@...
      > Collins Elementary School: alisoncrooks@...
      > Pinole Middle School: Tammera.Campbell@...
      > Pinole Valley High School: mikewitz2@...
      > Pinole CARE: parents@...
      > WCCUSD Parent Forum: wccusdtalk@yahoogroups.com
      > __________________________________________________
      > Do You Yahoo!?
      > Tired of spam? Yahoo! Mail has the best spam protection around
      > http://mail.yahoo.com
      >
      > [Non-text portions of this message have been removed]
      >
      >
      > Yahoo! Groups Links
      >
      >
      >
      >
      >
    Your message has been successfully submitted and would be delivered to recipients shortly.