CCSD teachers’ contribution for retirees’ health plans proposed

Active teachers would pay for the health care benefits of retirees under a proposal being considered by the teachers union and the Clark County School District.

The idea is the most viable option examined so far to solve a looming funding challenge for retired teachers' health insurance, said John Jasonek, executive director of the Clark County Education Association.

He said any solution that is developed will have to be negotiated by the union and voted on by teachers.

Education officials in Southern Nevada have been scrambling since a law was passed during the legislative session that essentially cuts off access to the state-run Public Employee Benefits Program, or PEBP, for anyone who retires after Sept. 1, 2008. Under the program, some retirees can get access to health care plans for less than $50 a month.

School district officials have warned that an estimated 1,000 teachers might choose to retire early in order to be eligible for PEBP. Only about 300 teachers on average retire each school year.

Losing that many teachers at one time could cripple public education in Southern Nevada. The district began the school year short more than 350 classroom teachers, and faces shortages in the hundreds every fall.

"Ideally, the Legislature will address the issue and make it a top priority next session," Jasonek said. "But we can't afford to wait until next session."

Jasonek said the plan to tap into active teachers' paychecks is in its developmental stages and specifics haven't been worked out yet.

But as an example, he said, if active teachers are willing to have $30 a month taken from their paychecks, that would produce more than $6 million a year to finance a health care program for retirees.

Most of the district's 18,000 teachers are covered under health care plans provided by Teachers Health Trust. The local nonprofit, which is independent of the teachers union, provides active teachers health care plans for about $50 a month on the low end. The only option the health trust offers retirees is an HMO plan that charges more than $500 a month.

Jasonek said under the new proposal, teachers who retire would be able to continue using the health care plans they used as working teachers.

Peter Alpert, chief executive officer of Teachers Health Trust, said it's too early to make any determination for how the problem of financing the health care of retired teachers will be resolved. Alpert said having active teachers pay for retired teachers health care is only one option.

Alpert said the interest of active and retired teachers has to be considered equally.

"We have two groups to worry about, and we're worried about both of them," he said.

Complicating the matter, a district judge ruled in September that the Metropolitan Police Department was exempt from paying a subsidy for its retirees because it already contributed to a health plan negotiated by the police officers' union. Officials said the decision affects teachers in Clark County because the teachers union negotiated with a similar health trust.

The decision has been appealed by PEBP's board of directors and is at the state Supreme Court. If the high court affirms the district judge's ruling, about 1,900 retired Clark County teachers would lose their access to the state program, PEBP Director Leslie Johnstone said.

Clark County schools Superintendent Walt Rulffes said the district is taking the union's proposal seriously. The district has also talked with private health care providers both in state and out.

Rulffes said he is as frustrated as teachers who are considering whether to retire because the district can't make any decisions until the Supreme Court makes a ruling.

"We don't have all the pieces right now because we don't know how the courts will rule," Rulffes said. "We're placed in a position that is very perplexing."

Jasonek said he would like to have the specifics of the proposal completed by December.

Several teachers who were told of the plan Wednesday had mixed reactions.

Rebecca Hinchliffe, a reading and math specialist at Culley Elementary School, said she wouldn't support the plan because at age 28, she has many years of work left and most likely will retire in her home state of Montana.

"I don't want to pay for someone else to receive that retirement benefit later," Hinchliffe said.

But John Williams, 37, a special education teacher at Robert Taylor Elementary School, said he would support the proposal. But he was unsure how many teachers could afford to have additional money taken from their pockets.

Ada Garner, 64, teaches pre-algebra at West Prep, formerly West Middle School. Garner said she has contemplated early retirement in order to have access to the state-run health care program, but she would prefer to work a few more years and would support having extra money taken from her paycheck in order to keep motivated teachers in the classroom longer.

"If we retire too early, and teachers who come behind us aren't dedicated, then who's losing out?" Garner asked.

Contact reporter Antonio Planas at aplanas@reviewjournal.com or (702) 799-2922.