Compensation of Board Members Tooele County School District - PowerPoint PPT Presentation

Compensation of Board Members Tooele County School District

Discussion from Prior Meetings • We are attempting to address two items in the proposed policy • Board Members may need to pay the District each month in order to have health benefits as employees are paying more in monthly Health Insurance Premiums. (Future problem) • Cost savings of offering payment in lieu of Health Insurance Benefits. If the District can save money by offering payments in lieu of health insurance benefits, why would we not want to save the funds. (Potential for good news for taxpayers)

Health Insurance Premiums • Current Policy allows Board members to “participate in any group insurance plan provided to employees of the TCSD as part of their compensation on the same basis as required for employee participation” • Board Members can therefore sign up for the following benefits • Health Insurance • Dental Insurance • Group Life Insurance • LTD Insurance • Etc.

Health Insurance Premiums (Continued) • Board Members have been paying Classified Employee Rates for Health Insurance Premiums. • Per Month Employee Health Insurance Premiums withheld FY17 • Classified plans begin at $76 per month and range up to $215 depending on the plan (High Deductible or Traditional), the network (Med+ or Care+), and the Tier (Employee, Two-Party, Family) of the employee. • Certified Plans range from $196 per month to $353 per month depending on the Plan, network, and Tier of the employee. • Board Members gross pay per month is $250

Payment in Lieu of Health Insurance • Could we even offer it because our Health Contract doesn’t allow it? • Asked GBS to contact our provider, and we were told we could make an exception only for Board members. • Is this an additional cost to the District? • The District spent $80,382.16 on benefits for Board Members last year. Of this amount approximately 95.5% or $76,760.60 were for Health Insurance Benefits. • Using FY17 Premiums the District could spend: • Employee Only plans range from $486.50 per month to 565.20 per month • Family plans range from $1,491.90 per month to $1,624.90 • The Proposed Policy would equate to $542.60 per month payment for Payment in Lieu.

Payment in Lieu of Health Insurance (Continued) • Yes this can be a savings to the District! • The proposed policy sets the payment in lieu of Health Insurance equal to the “value of the employee only premium of the lowest cost health plan” which is currently our High Deductible Med+ plan of $427.60 per month plus “the monthly employer contributions into a HSA for an eligible employee only contribution” which is currently $115. This would equate to $542.60 per month in additional compensation or $6,511.20. • Compare this to our top family plan with a premium of $1,624.90 per month or $19,498.80 and the maximum savings from the proposed policy would be $1,082.30 per month or $12,987.60 per year.

Brief Review Since November’s Presentation • District Administration did meet with employee groups as suggested in the November meeting and reported back to the School Board. • Administration also presented other alternatives (5 total proposals in the December Meeting the Board meeting. • After much discussion the Board decided to eliminate 2 of the 5 proposals, and bring back three options for this meeting, and to also have a public hearing.

Option 1 Being Presented • Option 1 is to leave the policy as is, no changes, which would not require any action on the Board’s part. • Limitations • Board Members may be put in a situation where they will need to pay the District in order to have benefits, as insurance costs continue to rise. • We shouldn’t just look at the Health Insurance Rates, Board Members are also offered Dental Benefits, and some even elect other voluntary benefits (such as vision plans). • Currently if a Board Member with a family elects our traditional plan and dental (133.70 Health + 79.20 dental = 212.90 per month with only leaves $37.10 in wages) • Board Members could not elect the Care+ Traditional Plan currently and dental or else they would need to pay $44.20 per month to the District for the benefit. ($215 Family Health + 79.20 Dental = $294.20)

Option 2 Being Presented • Option 2 sets a cap on the out of pocket maximum a Board Member must pay for Health & Dental Insurance. This would be capped at $250 per month or the current monthly contribution. (Full Disclosure does not include the $90 per month for extra meetings which is currently being paid in December) • Limitations • District will need to pay the difference between the cap of $250 and the amount other Support Professional staff have to pay.

Option 3 Being Presented • Increase Board Compensation to a set amount and not offer benefits. (In the proposed example this is set at $12,000 plus extra meetings of $1,080 for total compensation of $13,080.) • This is the same pay as Canyons and Jordan Districts. • Results in the greatest savings to the District as Benefits increase. • Limitations • No Benefits are offered to Board members, unless your willing to add a clause that Board Members may pay for their own insurance benefits if they pay 100% of the premium (Example - $17,902.80 cheapest family medical).

Reason for the Public Hearing • Utah Law (53A-3-202) addresses compensation for Local School Board Member. • Paragraph 2 of that section states that “ Beginning on July 1, 2007, if a local school board decides to adopt or amend its board compensation schedules, the board shall set a time and place for a public hearing at which all interested persons shall be given an opportunity to be heard.” Public Hearing Time