Before reading this presentation, please make note of the following:
• The plan noted on slides #3 and #4 (PC 15) is the current plan enjoyed by virtually all of our teachers
• The plan noted on slides #5 and #6 (PC 20/30/70) represents the Board’s proposed plan
• The plan noted on slides #7 and #8 (PC Customer 20/30/70) is an alternative plan suggested by IBC
• The first slide for each plan (slides 3, 5 and 7) are based on current costs, while the second slide for each plan (slides 4, 6 and 8) are based on our “first look” estimate on next year’s costs as provided by IBC
• The slide for each plan has five (5) columns representing:
* Tier (type of coverage)
* # of Subscribers (current or retired teachers who have this coverage)
* Board Cost (monthly cost of coverage at 100%, with no employee contribution)
* 15% = 11.25% (What the monthly employee contribution would be at 15% if they were in the 25% income tax bracket, when you factor in the pre-tax value per IRS code)
* 17% = 12.75% (What the monthly employee contribution would be at 17% if they were in the 25% income tax bracket, when you factor in the pre-tax value per IRS code)
• Not included in this presentation is the cost of the teacher opt-out benefit at 37%, which will total $1.34 million in 2011
• If the NFT had agreed to the Board’s proposal of 17% insurance premium contributions with the PC 20/30/70 plan along with a reduction in the opt-out benefit down to 25%, the District would have saved approximately $3.96 million this year
