Feedback to OPEB Proposals

1. Feedback to OPEB Proposals School Board Regular Session December 9, 2008

2. Since October 28… • Focused on • Sharing information regarding proposal • Answering questions • Gathering feedback and suggestions • Shifting focus to • Analyzing feedback • Developing possible modifications • Determining impact of modifications • Resulting in • Superintendent’s recommendations for Board action on March 17

3. Information Rollout • Meetings conducted November 3 – December 3 • 53 employee meetings (757 total attendance) • 5 retiree meetings (509 total attendance) • On-line information • October 28 Board presentation • Board contribution calculator • Fact Sheet (home mailing to retirees) • Feedback mechanisms • Question/comment forms • Ask.hr e-mail box

4. Feedback - Active Employees • Current provisions offered at retirement should be honored for all current employees at the time of their retirement • Proposed rate of $30/day for cashing in unused sick leave is too low • Employees should be able to redeem their sick leave for additional service and be able to receive payment for excess days not needed, rather than one or the other

5. Feedback - Active Employees • Offer choice of plans (HMO and PPO) for new pre-65 coverage rather than PPO only • Establish a sick leave bank to which employees could donate excess days which they could not cash in • Increase prescription rates for active employees in order to maintain current rates for current and future retirees

6. Active Employee Issues • Treatment of part-time service for determining eligibility for plan access and percentage of Board contribution • Proposed effective date of modifications (July 1, 2009) may cause employees to retire prior to completion of current school year

7. Feedback - Retirees • All retirees should retain their current Board contribution percentage and access to active employee coverage (for pre-65 retirees) based on commitment made at the time of their retirement • Proposed contribution of $100/month for post-65 retirees is insufficient and violates commitment made to maintain their percentage of Board contribution for life • Inequitable to place all post-65 retirees at the same $100/month Board contribution if currently receiving percentage based on sick leave returned at retirement

8. Feedback - Retirees • Access to dental coverage should be maintained for lifetime of all current retirees, with current Board contribution remaining in place • Changes to retiree benefits should only impact those who retire after the effective date of the changes • Require active employees to contribute toward their pension, rather than NNPS making 100% of contribution, in order to provide funding to maintain current level of retiree health insurance benefits

9. Feedback - Retirees • Large individual medical claims of a few retirees could cause the premiums for all pre-65 retirees to increase significantly if they are in a separate plan • Increase of 20-30% in premiums for new pre-65 retiree plan is too drastic • Offer choice of plans (HMO and PPO) for new pre-65 coverage rather than PPO only

10. Current Retiree Issue • Significant number of retirees elected to continue dental coverage only • Their Board contribution percent has been applied to the PPO (employee only) Board rate, rather than the dental Board rate • Results in full payment for dental coverage

11. Next Steps • Develop possible modifications to original proposal based on feedback received • Determine impact of suggested modifications on immediate costs, as well as on unfunded liability and annual required contribution • Report back to Board (January 2009) on impact of any suggested modifications – receive additional Board feedback

12. Next Steps • Report back to Board (February 2009) with any revised recommendations based on January feedback • Finalize recommendations for Board action on March 17