Health Insurance Update
For School district employees
Effective July 1, 2002
State Mandate
• $150 minimum effort
• Indexed 200-2001 contributions
• Maintenance of effort (In Audit Footnote)
• Example:
• 2000-2001 Contributions/full time FTE
• X 2002-2003 full time FTE’s
Full time employees
• For calculation purposes, any employee that is a contributing TRS member.
• For LISD, any employee working 20+ hours per week
Election Forms
• Explanation of $83.33 benefit • Election form for
- Health insurance- Health expenses – section 125- Income compensation
• English and Spanish• Notice by July 1, 2002• Election by August 1, 2002• New Insurance by September 1, 2002
New Funds
• Funds for minimum effort = 0• Funds for transition aid = $900 per year or $75 per
month HOWEVER only if above 75% of formula gain in Tier II aid. Meaning, the State is mandating how to spend the new funds that we would have used for salaries.
• Funds to LISD to the employee = $1,000 or $83.33 monthly
Options for Employees
For the $1,000, (Around July and August)
- Buy more health insurance for him/her or dependent
- Establish a cafeteria plan – 125 for health care expenses
- Receive funds as income compensation subject to FIT- not eligible for TRS
$83.33 Funds
Will use fund 418
Will use expenditures code 6132
Will report it the 10th of the month
Will receive it the 20th of the month for employees active contributors to TRS
Impact
• Employees that traditionally rejected insurance may want to be added now = Additional cost to LISD
• Type of Plan = Contributory vs non-contributory• Required Plans =Three New plans that we are
seeking proposals for.• Required mandate to spend on this program with
funds that would have gone for salaries.
Type of Plans
• TRS required that districts provide the following levels
• Low Option, High Option and State Option
Summary• MOE = $7,229,271/3.284 = $183.45• Required Minimum $150• Excess MOE = $33.45 to be used for salaries higher
than in FY 2000-2001
FROM LISD
(1) LISD will contribute $225 per month in health contributions . . . . . . . . . . .AND
(2) $33.45 per month in additional salary compensation
FROM STATE
(3) $83.33 per month will come from the State
What’s Next• Define LISD Contribution: $225 per month
• Define State Contribution: $83.33
• =====================================
• Last year’s Rates $209 and $223 per month
• Define Plan Level: 4 proposals
• Define Negotiating Team:
• Define Input from Employee Advisory Committee
• =====================================
• Employees to Submit response by Aug 1st
• July and August will be enrollment period
Board Decision
by June 13th
New Policy
by Sept 1st
Totalavailable $308.33