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Meeting Date:
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Category:
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Type:
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Subject:
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1. Action on a Long-Term Disability Plan as an Employee Voluntary Option as of July 1, 2018 |
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments:
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Long-Term Disability Comparison Plans |
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File Attachment:
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Background:
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At its June 30, 2016 meeting, the Milwaukee Board of School Directors approved a contract with The Standard, which included Board-paid Long-Term Disability (LTD) Insurance. This policy included two plans: a 90-day benefit waiting plan for the Superintendent, Cabinet, and Administrators and a 180-day benefit waiting plan for all other employees.
At its April 19, 2018 meeting, the Milwaukee Board of School Directors approved the Administration’s recommendation to terminate MPS’s paid Long-Term Disability Plan and offer Long-Term Disability as an employee voluntary option.
The Administration is now proposing to terminate the Board paid Long-Term Disability Plan as of June 30, 2018, instead of December 31, 2018, and propose the following voluntary employee paid plans effective July 1, 2018:
The Superintendent/Cabinet/Administrator LTD plan (90-day Elimination Period):
Option 1 - Offer current plan design with a composite rate of $0.95 per $100 with a 66 2/3% benefit, a lifetime benefit, and cost of living adjustment (COLA).
Option 2 - Offer a lower cost option with a 60% benefit, a five year benefit period maximum, and without COLA with a composite rate of $0.363 per $100.
The All Other Employees LTD plan, not covered above (180-day Elimination Period):
Option 1 - Offer current plan design with a composite rate of $1.098 per $100 with a 66 2/3% benefit, a lifetime benefit, and COLA.
Option 2 - Offer a lower cost option with a 60% benefit, a five year benefit period maximum, and without COLA with a composite rate of $0.358 per $100. |
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Fiscal Impact Statement:
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This item provides an estimated savings of $1,000,000 for the six-month period July 1, 2018 - December 31, 2018. |
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Implementation and Assessment Plan: |
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Upon approval by the Board, the Office of Human Resources will implement the changes to the Long-Term Disability Plans effective July 1, 2018. |
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Recommendation
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The Administration recommends that the Board approve the termination of the Board-paid Long-Term Disability Plan as of June 30, 2018, and the adoption of the employee-paid Long-Term Disability Plans with The Standard. |
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Approvals:
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Recommended By: |
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Signed By: |
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Carol Eady - Director II |
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Signed By: |
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Himanshu B Parikh - Chief |
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Signed By: |
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Dr. Darienne Driver - Superintendent |
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