SB 544 - Makes various changes relating to the Public Employees' Benefits Program

1. Close off state plan to this year’s retirees & all future retirees.
2. Only way district can offer state retiree plan is to force all actives into state plan.
3. Current PEBP retirees are “Grandfathered” in.
4. If 544 passes with Section 2 unchanged, UCCSN employees, state employees and certain local government employees will continue to enjoy a stipend to help defray the cost of health insurance in retirement. Public school employees will be left out. NSEA  believes AB 286 was passed in 2003 to remedy this problem. NSEA obviously believes the state should not step back from its promises.
5. NSEA doubts many school districts will avail themselves of the ‘all in or all out provision’ because we believe we have negotiated better plans for our actives than is offered by PEBP. Furthermore, using Clark CSD as our example, if they brought their teachers to PEBP and assuming rates stay the same, the cost increase to the state would be approximately $27 million a year just to insure the teachers. The support staff and administrators are not included in that estimate.
6. IF AB 324 is amended to SB 544 school districts can keep their plans for actives and provide a stipend for retirees to remain in local school district plans. NSEA supports the inclusion of the stipend in the DSA. Hopefully that addresses the issue of the high number of retirees in the non-state plan.
7. NSEA estimates there are over 2,400 active school district employees who are not Medicare eligible.  Access to the stipend and PEBP is especially essential for this group of employees.

If SB 544 Passes

SB 544 begins implementation on October 1, 2009.

1. This year’s retirees can join PEBP
2. Gives local associations time to adjust to new rules on PEBP

   Associations may want to join PEBP

   OR

   Offer retirees a “new” health option through negotiations

AB324 – NSEA Supports

AB324 - Expands eligibility for a subsidy for the costs of health insurance coverage to additional retirees of school districts

1. Stipend is portable – goes to local district plan or retiree may join PEBP – stipend is the same amount.
2. AB324 may begin this year.  Stipend would go to current & future retirees.
3. If the issue is the impact that education retirees are having on PEBP, then AB324 encourages retirees to stay in their home plans.
4. Without a stipend, education retirees will face expensive insurance or have to chose to have “no” insurance.
5. Keep current PEBP retirees “Grandfathered” in!!!