Board of Education
Waupun Area School District - January 2016
January 18th Board Meeting
Retirement Plan Discussion
As you know, Linda Mont from Key Benefits spoke to the Board about a potential framework for a new retirement benefit. The plan was built around the following goals/objectives of the District in the restructure of the post-employment benefits:
· Recruit and retain quality staff
· Move away from health care benefits
· Reward for years of service
· Portability (vesting) of benefits
· Separate Insurance (health) from retirement benefits
· Employee participation in creating a retirement benefit (skin in the game)
Based upon these goals/objectives, a four-tiered approach was presented based on years of service to the district. The first tier is the current benefit that is in the handbook. Those eligible to retire by June 30th of this year would be grandfathered into this benefit until June 30, 2019. Tier 2 is an HRA contribution that would remain in effect until Medicare eligibility. Tier 3 includes a 403(b) buyout based on years of service and then an annual amount paid into that same 403(b). Tier 4 is for new hires and those with less than 5 years of service in the district. It would be a yearly 403(b) contribution.
The major difference is that our current plan pays for one to stay on the district’s health insurance plan which is expensive for employees. Therefore, the dollars typically equate to about 24 months of family insurance for teachers. An HRA contribution can only be used to reimburse health care premiums and can be used in the marketplace. Generally, these dollars can stretch further than staying on the district’s health insurance. These plans can also be tailored directly to your own needs. Finally, a 403(b) contribution can’t be drawn until one is 59.5 years old (unless you want to be taxed significantly.) When it is drawn at that time, it is taxable income. However, that money can be used for anything you desire.
The other unique feature of this plan is that the Board is looking into a shorter vesting period and not requiring one to actually retire from the district to get this benefit.
It sounds like all of this is a done deal, correct? Nope. There are a lot of decisions to be made yet, and this is where we will be involving staff. I have talked with many of you about being part of a group that advises the Board on this plan. Please email Christine if you wish to be part of this group.
Our next steps will be to cost out dollar amounts in each of the tiers to make sure the plan is affordable and sustainable. To make sure our data is accurate, we will be putting seniority lists in each of the teacher workrooms. Once I notify you they are there, we will give you about a 2 week window to check your years of service to the district.
As a reminder, the district also contributes to the Wisconsin Retirement System on your behalf. This new plan is in addition to that benefit. Even if you think retirement is years away, it is always smart to look at your investments now to plan for your future.
Other Board items:
· Andy Kohn and Gloria Schmidt presented summer school information. Gloria will be organizing summer school at the 6-12 grade level. Be watching for information soon from the two of them. We need to increase our student numbers in summer school to prevent the summer reading and math loss that we continue to see.
· Our audit showed that we made a 20% improvement towards our bond rating. It may sound boring to you, but Carrie Hintze was pretty excited. It will help our borrowing power if our referendum passes!
School Board Spring Elections
Current 2016 School Board Election Registered Candidates:
Town of Alto and Trenton - Bill Bruins
City of Waupun - Glen Wilson
Towns of Burnett, Chester, Oakfield, Springvale, and Waupun - No Candidates
Election Day is April 5, 2016
Please contact Christine Tschumperlin, at 920.324.9341, ext. 2103, if you have any election questions.
Some members of the Board will be attending the State Convention this week. (January 9-22, 2016)
Click here to view the January 18, 2016 WAEA Report.
The next Facilities Planning Committee Tour and Meeting is Monday, February 1, 2016 at 5:45 p.m. located at the Education Service Center. View the website for more information
Upcoming Board Meetings:
Committee Meetings: February 8, 6-8 p.m.
Regular Business Meeting: February 22, 7 p.m.