Overview of Insurance Costs

During the April 12th public meeting, our insurance broker presented information regarding insurance costs for employee health care. Below is the unedited presentation from Mr. Gulla, and it is based on the information recently obtained from our insurance provider, International Blue Cross (IBC).

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

NSD Teacher Premiums and Contributions 4-12-11

An open letter to our teachers

An Open Letter to Our Teachers

Highlights from Meeting #29

Representatives from the NFT and Board met for negotiating meeting #29 this past Tuesday to discuss the health care plan information obtained from our insurance provider by the solicitors representing each side. Since our provider, International Blue Cross (IBX), did not supply us with the information until Monday evening, both parties require additional time to review the data.

It is worth mentioning that nothing provided by IBX contradicts what was reported by the Board during previous discussions, and this should serve as validation that the Board has been completely transparent with the NFT throughout these negotiations.

Before the meeting concluded, Board President Ritchie Webb reaffirmed the Board's position that teachers must contribute no less than 17% towards monthly health care premiums at this time in order for the district to confront its financial and educational challenges. Since health care/benefit costs are our single greatest expense, the Board is unable to consider other aspects of the collective bargaining agreement until this issue is addressed.

The NFT offered no concessions regarding health care premiums during this meeting, nor did they give approval for the Board's proposed self insured Rx plan which would offer substantial annual savings to the district with no benefit impact to our employees.

The State mediator will be contacting both sides to schedule another meeting in the near future.

Healthcare remains a major issue

Negotiation meeting #28 took place earlier today as Ritchie Webb and solicitor Charles Sweet met with Louise Boyd and NFT attorney Tom Jennings. The state mediator, Mr. Cairns, was also present for this meeting that lasted approximately 90 minutes.

Healthcare continues to be one of the major issues that separates the two sides. Mr. Sweet and Mr. Jennings agreed to jointly meet with our healthcare providers to obtain specific financial information. Hopefully this will clarify our costs and coverages, and will help bridge the gap that divides us.

Mr. Cairns requested that we meet again on February 15th, using the same format to review Mr. Sweet's and Mr. Jennings' findings.

Talks rescheduled

Today's negotiation session has been rescheduled to next Wednesday, February 2nd.

New round of talks scheduled

After having separate meetings with the state mediator, both the Board and NFT have agreed to another negotiation session on Thursday, January 27th. In an effort to facilitate open dialogue, each side will be represented only by their respective president and attorney along with the mediator.

Reactions to NFT Press Release

An article in today's Bucks County Courier Times included comments from NFT President Louise Boyd. School Board President Ritchie Webb responded with the following statement, some of which was included in today's article:

The NFT, in its latest press release dated December 29, 2010, asks about the commitment of the Neshaminy School Board to the current collective bargaining process. The Board has been and remains completely clear about its commitment to bargaining. The Board is committed to negotiating a contract that the community can afford. It is committed to negotiating a contract that can be paid for by revenue that can be legally raised under the current law, Act 1. The Board intends to bargain a contract that does not hurt kids by being so financially unreasonable that it would require educational programs to be cut or eliminated. The current demands of the NFT do not meet any of these criteria.

The NFT’s public relations releases are now trying to argue that the NFT has made compromises during the years of bargaining with the School Board. That argument is completely false. The NFT made written demands in January, 2008 at the beginning of negotiations for new and expensive items that it wanted. Those items included salary, benefits, program changes, and the sharing of decision making power with the Board and Administration that were totally unreasonable in financial cost and concessions of power to the Union.

The “concessions” that have been referred to by the NFT are almost completely mere offers to take off the table some of the new demands they made in 2008. It is not a compromise to demand something new or more expensive, and then offer not to take that something you do not have.

The concessions that have never been offered by the NFT are well known to the public. Most obvious and well known are a contribution by each individual to the premium cost of health benefits. Every other Neshaminy employee, from the lowest paid to the highest paid, makes such a monthly contribution. Every other Bucks County School District employee, whether or not represented by a union, has for years made such contributions to health benefits. Such contributions have also been made by other public sector unions, as well as private sector employees.

In two days it will be January, 2011. We will soon have completed three (3) years of bargaining, and will, as we are required by law to do, start year four (4). If the NFT wants to demonstrate its own commitment to bargaining a contract, it must stop its posturing and pretense, and make some real concessions that reflect the reality of the times.

Ritchie Webb
President
Neshaminy School Board