The Idaho School Benefit Trust (ISBT) was created for the purpose of helping school districts, and we continue to advance that purpose by supporting what is in each school district’s best interest. As we learn more about the Governor’s proposal to create an option for school districts to move to the State plan, we highly recommend that our participating school districts perform the right analysis to make sure that they understand how the funding works. There are still many unanswered questions at this point; however, the key factor in the calculation is that the funding of the additional $4,000 for discretionary benefits is based on support units rather than on benefit-eligible employees. In other words, school districts that have more teachers/staff than support units will not save as much money or may have to pay more. As a result, many school districts will have to use significant additional money from the budget to move to and participate in the State plan. We encourage school districts to look at this objectively and let the math indicate whether a move to the State plan is advantageous or whether school districts should use the additional discretionary funds to enhance their current benefit offering.
While we anticipate some school districts considering a move to the State plan, we encourage school districts to really understand the State’s funding formula and how it will impact the district’s overall budget. In addition, school districts should understand other important issues, such as the premium payment process, no coverage for pre-65 retirees on the State plan, the increased cost of coverage for retirees on the exchange, how future cost increases for State benefits will affect the district’s budget, current contractual obligations to pay contributions through August 31st, and so on.
As more facts become available, we will continue to communicate with you.
Regardless of the number of school districts that may decide to move to the State plan over the next two years, the ISBT will remain a strong partner for school districts and may actually end up in a better position for its participating school districts.
Debbie Hainke, Benefits Manager
(208) 996-4701
www.idahoschoolbenefittrust.com
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Boise, ID 83705