Dr. Evelyn Rossi, Assistant to the Superintendent Lebanon School District How to Structure Retirement and Post-employment Healthcare March 9, 2005

Focus:Positioning individual school districts/consortiums (coalitions) in structuring retirement benefits and employment/post-employment healthcare benefits.

Health Care Benefits A.Health Insurance Co-pay a. Increase health insurance co-pay for individual/family. b. Recommendations include an increase in the form of a percentage of annual premium or a flat dollar amount.

B.Prescription Co-pay a. Increase prescription co-pays in increments of $5 or $10. b. Move to “mail-in” prescription benefits for all maintenance drugs.

C. Primary/Secondary Coverage For Spouses a. Propose language that provides an employer the ability to have a new employee certify the status of his/her spouse’s eligibility for health insurance through the spouse’s employer and to allow the employer to provide only secondary coverage to spouses who are eligible for health insurance coverage through their own employer.

D. Where multiple healthcare plans are offered, the school district should consider language that will provide the retiree with the lowest cost premium product. It is the responsibility of the individual retiree to pay the difference in premium cost, if he/she opts for another healthcare product.

Salary A. Salary increases in percentages should be discussed and agreed upon in conjunction with the health care package, not as a stand-alone. The major decision regarding salary is that each district informs the Consortium/Coalition of its salary position during discussions with the union, including early bird contracts. B.When preparing bargaining analysis, districts should take into consideration Column Movement cost and Salary Schedule Comparisons with step movement included.

Severance/Retirement Benefits A.Sunset language should be proposed where appropriate in the severance/retirement benefits section. a. Sick day reimbursement. b. Length of service bonuses. B.Trade-off lump sum cash payouts for those over time.

Health Insurance Carrier Choice Language A.The school district will provide medical insurance as provided by the Health Insurance Carrier contracted with the ________ School District Consortium/Coalition for each employee and family member. The ________School District reserves the right to choose an alternate medical insurance carrier or plan as long as the coverage is comparable to the existing plan.

B. The school district will provide prescriptiondrug insurance as provided by the Prescription Drug Insurance Carrier contracted with the _______ School District Consortium/Coalition for each employee and family member. The school district reserves the right to choose an alternate prescription drug insurance carrier or plan as long as the coverage is comparable to the existing plan.

C.The school district will provide the Dental Insurance Carrier contracted with the _______ School District/Consortium (Coalition) for each employee and family member. The school district reserves the right to choose an alternate dental insurance carrier or plan as long as the coverage is comparable to the existing plan.

Unilateral Changes by Insurance Carrier Language The Association understands and agrees that any and all changes unilaterally implemented by the medical insurance carrier, prescription drug insurance carrier, and/or the dental insurance carrier will be accepted immediately and incorporated into the current Collective Bargaining Agreement and not subject to the grievance procedure.

State Health Program Language The Association understands and agrees should the district be legally obligated to participate in statewide health plan, such plan shall replace the medical and/or prescription plans set forth the current agreement and the change to the statewide plan shall not be subject to grievance procedure.

In the event that a state wide plan becomes available and the district chooses to participate in the plan during the term of the Agreement the district shall be permitted by the Association to replace the medical and/or prescription plans set forth in this Agreement with the statewide plan. This change is not subject to the grievance procedure.

Referendum Language A.During the term of this Agreement, in the event the Board determines that a tax increase will be necessary to fund the annual district budget for the upcoming fiscal year (July 1 to June 30) and a public referendum is mandated by law in order to approve such an increase, upon written notice by the Board to the Association on or before December 10th 

via certified letter to the Association president, the remaining years of this Agreement shall become void as of June 30th following such notice. After notice to the Association, the Board and the Association shall enter into negotiations as mandated by Act 88 for a successor Agreement.

These are suggestions only, for contract language and goal setting, for individual school districts/consortiums (coalitions). Prior to implementation of any/all recommendations, please consult with your solicitor.