1. Retiree Benefit Information
Present to the OUHSD Board of Trustees
August 14th, 2019

2. 18/19 COSTS AND ENROLLMENT NUMBERS

3. COSTS OVER THE YEARS BENEFITS BROKEN DOWN Projected Year 2013-14
Increase % since 2013 in $
RHBT
$ ,784,041.00
$ 6,697,463.00
$ 7,057,747.00
$ 7,863,245.00
$ 10,134,388.00
$ 11,266,165.00
66.07%

4. The Numbers for Retirees (dtd 12/31/18)
1,132 people are eligible for life time medical benefits
601 are retired
531 are active employees
1,012 active employees (65.6%) who are not eligible
THIS MEANS:
531 employees and their dependents will be added to the plans in the coming years
This will approximately double expenses plus plan costs increases

5. CBA Language & Impact
The parties’ further agreement that they will take any and all actions needed to ensure that, starting in the fiscal year, the Retiree Health Benefits Trust (“Trust”) and its Board of Trustees issue payment(s) during the fiscal year in an amount not to exceed fifty percent (50%) of the prior five year’s rolling average of investment income earned by the Trust, to pay for Retiree Health Benefits for eligible unit share and non-unit share retirees in excess of the $6.0 million and $3.0 million respectively allocated by the District from its LCFF Base Grant (Article ). Any future remainder of CSEBO funds not approved in this Article shall be mutually agreed upon by the District and Federation.
Total cost exceeding $9,000,000 = $2,285,686
50% of interest withdrawal = $1,556,738 (dtd: 3/31/2019)
CSEBO Funds to be used = $728,948 (current balance: $3,064,095)

6. Alternative Ways to Reduce RHB Negative Impact with Estimated Savings
All retirees and dependents enrolled must make a contribution of $300 toward medical benefit plan: $1,767,600
Retiree Anthem BC PPO plan changed from PPO 90 to PPO 80 Reduction of cost would be: $150,000
Existing J & K Rate PPO 90 plans canceled and transferred to J & K Rate HMO Plans: $352,000.
TOTAL Savings: $2,269,600