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Retiree Benefit Information

Retiree Benefit Information. Present to the OUHSD Board of Trustees August 14 th , 2019. 18/19 COSTS AND ENROLLMENT NUMBERS. COSTS OVER THE YEARS. 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

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Retiree Benefit Information

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

  2. 18/19 COSTS AND ENROLLMENT NUMBERS

  3. COSTS OVER THE YEARS

  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 2019-20 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 16.1.1). 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

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