August/September 2006

VOL. 17 NO. 1

Inserts: Click on the links below to downland the Acrobat (PDF) files

1) CCASAPE Active Employee Health Insurance Premiums July 1, 2006 – December 31, 2006

2) School Administrators’ Welfare Trust Medical Plan Options General Summary

HEALTH PLAN OPEN ENROLLMENT
Once each year, during the months of October and November, the School Administrators’ Welfare Trust holds an open enrollment period.    This is the time for you to review your benefit election to ensure that it meets the needs of you and your family.  During the open enrollment period, you will have the opportunity to make the following changes to your benefit election:

The School Administrators’ Welfare Trust has scheduled a series of seven benefit information meetings (5 for actives / 2 for eligible retirees) to be held during the month of October to provide administrators and eligible retirees an opportunity to discuss the medical plan options that are available and to review changes in premium rates.   There will be no increase in the current premiums for dental, vision, life insurance or long term disability.   However, on behalf of the School Administrators’ Welfare Trust, Allin and Stephen are currently finalizing negotiations with Sierra Health to determine the premium increase for the medical portion of the comprehensive health insurance plan.  The rate increase is scheduled to become effective January 1, 2007.  It appears that through negotiations, current rates may be extended for a six-month period, effectively postponing the rate increase until July 1, 2007. When negotiations are completed, additional information will be communicated by the School Administrators’ Welfare Trust  in  the  September/October  Unifier regarding the specific rate increase in the medical benefit and the effective date of the increase.  CURRENT CCASAPE ACTIVE AND RETIREE HEALTH INSURANCE PREMIUMS ARE INCLUDED IN THIS UNIFIER.

All principals are reminded that Article 20-11-5 of the Negotiated Agreement between the Clark County School District and the Clark County Association of School Administrators and Professional-technical Employees outlines the process and procedure for the required annual review of the classification of each principal position in the District.  The review occurs annually, following count day (September 22 for the 2006-2007 school year).  Human Resources will complete the analysis of all required data and will notify those principals who have changes in their classification point factors prior to October 25, 2006. Any change in classification factors which results in a salary increase will be paid beginning on the November 10th  pay date and will be retroactive to the first day of the contract (July 1 or August 1).  Reclassification point factors for principalscan be viewed on the CCSD website.

The CCASAPE / CCSD Health Insurance Plan is a comprehensive health benefits program offered through the School Administrators’ Welfare Trust.  In order to receive the maximum benefits possible at the lowest possible cost, it is important that eligible retirees, administrators and their dependents are familiar with the various components and benefit levels offered through the plan.  Each participant is encouraged to carefully review the CCASAPE / CCSD Health Insurance Plan benefits booklet.  Additionally, the PPO and HMO Provider Directories from Sierra Health should be examined carefully to ensure the appropriate selection of medical providers.  It is recommended that plan doctors be verified online through the CCASAPE website (www.ccasa.net).  The web site listing will be more up-to-date than the printed HMO and PPO provider directories that you have received.  Included in this Unifier is a color-coded summary of the various medical plans offered through the School Administrators’ Welfare Trust.  Administrators are encouraged to review the summary.

Since there are many new administrators and professional-technical employees enrolling in the CCASAPE / CCSD Health Insurance Plan, the School Administrators’ Welfare Trust is pleased to provide a brief overview.  It is important to note that eligible CCASAPE retirees have the same level of benefits as active employees, with the exception that there is no long term disability benefit for retirees.  Additionally, retirees do not receive a District contribution to offset the cost of health coverage.   

CCASAPE’s goal is to negotiate a sufficient District health insurance contribution to cover the full cost of insurance for the employee and to provide maximum benefits for the lowest possible cost for dependents and eligible retirees.  There continues to be a number of influences which cause health insurance premiums to increase.  These influences include rising hospital costs, medical malpractice insurance and escalating pharmacy expenses.  Additionally, member utilization plays a significant role when negotiating new health care premiums.

The School Administrators’ Welfare Trust provides a comprehensive health insurance plan that consists of five separate components that are provided by three different providers:

Medical Coverage - Sierra Health Services
Dental Coverage - Standard Insurance Company
Vision Coverage - Vision Services Plan
Life Insurance - Standard Insurance Company     
Long Term Disability - Standard Insurance Company

Medical Coverage – Sierra Health
Administrators, eligible retirees, and their dependents have three excellent medical benefit plans from which to choose.  (See color coded medical plan summaries included in this Unifier.) While each of the medical plans is different, they each provide a rich array of benefits and are priced to offer the eligible retirees, administrators, and their dependents options that allow significant savings.  For example, an active administrator and family on the POS Plan 1, annually pays $4582.92 out-of-pocket for dependent coverage.  On the POS Plan 2, the annual out-of-pocket cost for family coverage is $2770.44, a reduction annually of $1812.48.   The out-of-pocket cost is reduced to $1507.68 if the administrator and family enroll in the HMO Plan 3, a reduction annually of $3075.24.  Administrators with a spouse only or children only will also enjoy significant reductions if Plan 2 or Plan 3 is selected.   Retirees will also see significant savings if they enroll in either Plan 2 or Plan 3. 

The selection of a medical benefit option must not be taken lightly or based on what your colleagues may do.  It should be based on the medical and pharmacy needs of your family. A primary difference between the three plans is the pharmacy benefit.  The pharmacy benefit for Plan 2 and Plan 3 requires two co-payments for a 90 day supply of drugs purchased through mail order (Express Scripts) while Plan 1 requires only one co-pay for the 90-day supply ordered through Express Scripts.  However, non-preferred brand name drugs, those drugs which have a $20 co-pay on Plan 1, are not available for a 90-day supply through Express Scripts in Plan 2 or Plan 3, but must be purchased for the applicable co-pay on a monthly basis.  Participants selecting Plan 3 will, of course, be limited to seeing HMO providers only.  Regardless of which medical benefit plan you choose, every active administrator has the same vision, dental, life and long term disability plans.  Eligible retirees will also have the same vision, dental and life insurance plans, but do not receive long term disability.

Administrators who do not have dependents on the plan may prefer to enroll in Plan 1, since the School Administrators’ Welfare Trust continues to offer this plan with no out-of-pocket cost to the employee.  Also, administrators who have dependent children attending college out-of-state may find Plan 1 most suitable since Plan 2 only provides Tier 3 coverage for students attending college out-of-state.

Administrators and eligible retirees who are 65 and meet the eligibility requirements for Medicare (Parts A and B) may want to consider enrolling in the CCASAPE Medicare Eligible Plan.  This plan has the same or enhanced benefit levels as the benefits in the Trust’s POS Plan 1, but at a significantly reduced cost.

Please refer to your health benefit booklets for specific benefit coverages for the various covered services or contact the CCASAPE office for assistance with specific questions about your coverage which is provided through the School Administrators’ Welfare Trust.

Rene Bernier-Herle continues to serve as the Sierra Health Services account executive for the medical plan options offered through the School Administrators’ Welfare Trust.  If you have ANY problems with the HPN Point of Service Plans, the HMO Plan, or the SHL Out-of-Area Plan, you can give Rene a call at 304-6964 or you may contact the CCASAPE office at 796-9602.

Dental Coverage – Standard Insurance Company
Dental coverage is provided by the Standard Insurance Company.  A summary of benefits is as follows. The deductible for each enrollee is a $100 lifetime deductible.   Diagnostic and preventive services are paid at 100% if a plan dentist is utilized.  Basic benefits are covered at 80% and crowns, bridges, and dentures are covered at 50%.  There is a maximum $1500 benefit per patient per calendar year and a lifetime $1500 orthodontic benefit for dependent children to age 19. 

Vision Coverage – VSP
The provider for vision coverage is Vision Services Plan (VSP).  Examinations and lenses will be provided every 12 months and frames will be provided every 24 months.  The plan includes a $10 co-pay to member doctors at the time services are provided. Services can be obtained from non-member providers and a fixed reimbursement schedule is provided.

Standard Group Insurance
Each administrator currently participating in the CCASAPE / CCSD Health Insurance Plan has a $50,000 life insurance policy from Standard.  This policy also contains an additional $50,000 Accidental Death and Dismemberment (AD&D) benefit.  Both the original amount and the AD&D benefit will reduce to $32,500 when active employees reach age 70 and to $25,000 when active employees reach age 75.  For eligible retirees who keep the CCASAPE / CCSD Health Insurance Plan, both the original amount and the AD&D benefit reduce to $25,000 at age 70.   The policy also provides $2,000 life insurance coverage for the spouse and each dependent child of an active or retired administrator.  Dependent coverage includes unmarried children from live birth through age 18, or through age 26 if the child is a full-time, registered student.  Dependent coverage decreases in the same ratio as the administrator or retiree.

Standard Long Term Disability
This benefit is provided by the Standard Insurance Company.  The benefit is effective 180 days after an individual becomes disabled.  The benefit is 60% of an individual’s salary.  The premium is paid with after taxed money which makes the full 60% benefit tax free. 

In addition to the comprehensive benefits outlined above, the School Administrators’ Welfare Trust has negotiated other health related benefits for administrative and professional-technical employees.  These benefits are provided at no cost to the employee and include the following:

Standard $100,000 Life Insurance Policy
The School Administrators’ Welfare Trust administers a $100,000 life insurance policy for all active employees and those eligible retirees who elect to continue the policy after retirement.  The policy also contains an additional $100,000 Accidental Death and Dismemberment (AD&D) benefit.  Both the original amount and AD&D benefit reduce to $65,000 when the active employee reaches age 70 and to $50,000 when the active employee reaches age 75.  This policy is currently provided through the Standard  Life Insurance Company.    This policy is provided by the School Administrators’ Welfare Trust to all active district administrators with contributions required by the CCASAPE labor agreement.   There is no negotiated life insurance contribution provided once an administrator retires.  However, the Trust, as a free service to its eligible retirees, will collect the premium and transfer the premium to the Standard Life Insurance Company.  For eligible retirees who elect to continue this insurance, the original amount and the AD&D benefit reduce to $50,000 on January 1st following the insured retiree’s 70th birthday.  The premiums for eligible retirees are the same as those of active administrators for this policy.

UNUM Long Term Care
The School Administrators’ Welfare Trust also provides to each active administrator and professional-technical employee a basic long term care policy.  This policy pays $1000 per month for a long term care facility, $600 per month for an assisted living facility, and $500 per month if receiving professional home care from a licensed practitioner.  This basic LTC plan pays a maximum lifetime benefit of $60,000.  This policy is provided by the School Administrators’ Welfare Trust and there is no cost to active administrators.  Retirees may continue this basic long term care policy at retirement by paying the premiums themselves.  Active administrators and retirees, who have had no lapse in long term care coverage, may apply to purchase additional long term care coverage from UNUM.  Please contact the CCASAPE office for an application packet.

REMINDER:  FULL-TIME STUDENT ENROLLMENT STATUS MUST BE VERIFIED
An unmarried child who is under the age of 27 and enrolled in an accredited school is eligible to receive health benefits as a dependent on the CCASAPE / CCSD Health Insurance Plan.  Students must be enrolled in 6 credit hours and must submit, once annually, a letter from the registrar’s office verifying that the student is enrolled in a minimum of 6 credit hours.   Verification from the registrar’s office must be sent to Nick Venturini in the Employee Benefits Office in the Education Center by the end of September 2006 to continue health benefits through the School Administrators’ Welfare Trust for the 2006-2007 school year.  Even though student status verification is completed only once annually, the student must remain enrolled throughout the school year to maintain health insurance eligibility.

Article 27 in the Agreement between CCASAPE and the District outlines in significant detail the steps to be followed in progressive discipline.  Article 27 has been written for all administrative employees and particularly for administrative supervisors.  Discipline for administrators is an effective, reasonable system of disciplinary action that is founded on the premise that disciplinary actions, where possible, are to be corrective rather than punitive and generally, disciplinary actions are to be progressively more severe.  The progression of disciplinary actions must fit the nature of the specific circumstances.  Except for incidents of a serious nature as defined in Article 27, progressive disciplinary actions shall generally follow the pattern of oral warning, written warning, admonition or admonition/suspension and finally, demotion, non-renewal or dismissal.  Incidents of a serious nature which would not require the normal sequence of progressive discipline include incidents related to dishonesty, crime of moral turpitude, immorality, or unprofessional conduct.  The first step of discipline related to an incident of a serious nature may be an admonition.

All administrative supervisors are reminded to review Article 27 carefully when administrative discipline is being contemplated.    Discipline for administrators is not a creative writing exercise and should ALWAYS follow the language, progression, and provisions outlined in the Agreement.  CCASAPE is concerned that some administrative supervisors writing disciplinary documents, including unsatisfactory evaluations, are not consistently following the requirements and procedures clearly set forth in Article 27.

CCASAPE carefully reviews all disciplinary documents, including unsatisfactory evaluations that are forwarded to our office.  The review is completed to ensure that the disciplinary document, including an unsatisfactory evaluation, is contractually correct, that steps in progressive discipline have been followed, that time lines have been adhered to and to ensure that the document is factually correct and legally sufficient.  Disciplinary documents which do not meet the aforementioned criteria are addressed and may require resolution through the grievance and arbitration process.

RETIREMENT
Please be reminded that any administrator planning to retire on or before December 31, 2006, must schedule a meeting with the CCASAPE staff and complete the form to participate in the School Administrators’ Welfare Trust’s retiree unused sick leave payout, retiree health coverage assistance payout, and retiree life insurance / retiree long term care programs.   THE FORM MUST BE COMPLETED AND FILED WITH THE CCASAPE OFFICE PRIOR TO NOVEMBER 1, 2006, IN ORDER TO PARTICIPATE IN THE JANUARY 2007 PAYOUT.    Please call the CCASAPE office at 796-9602 if you have any questions.

As a reminder, any retiring administrator who is 55 or older or who will turn 55 in the calendar year of his/her retirement, will automatically have all or some of his or her vacation payoff deposited in the 403(b) Vacation Pay Plan.   A maximum of $44,000 may be sheltered, but the exact amount to be sheltered may not exceed plan year income.  The amount eligible to be sheltered will be reduced by the amount already sheltered in your 403(b) voluntary tax shelter plan.  Participating administrators will avoid the payment of Medicare tax and will postpone and possibly reduce the payment of federal income tax. 

If you have questions regarding any aspect of the 403(b) Vacation Pay Plan, please do not hesitate to contact the CCASAPE office or Paul Larson at VALIC, 796-0047.

COMMITTEE VOLUNTEERS
Bart Mangino, CCASAPE President, is seeking volunteers to serve on various CCASAPE and CCSD committees.  If you are interested in serving on a CCASAPE committee or as a CCASAPE appointment to a CCSD committee, please call the CCASAPE office at 796-9602 or Bart Mangino at 799-3400.

AUGUST REPRESENTATIVE COUNCIL MEETING

On August 10, 2006, the CCASAPE Representative Council held its regular monthly meeting.  The major items discussed, reviewed, and/or actions taken during the regular meeting included the following:

There are several areas of dispute raised in the EMRB Complaint, and CCASAPE’s motion to dismiss the complaint asserts (among other things) that:

B. School Administrators’ Welfare Trust – Stephen reviewed the status of discussions with the CCASAPE attorney regarding the School Administrators’ Welfare Trust;

C. Health Reimbursement Account (Article 13-9) – During the last negotiations between the District and CCASAPE, the District agreed to establish a health reimbursement account for retiring administrators who meet the agreed upon criteria.  The health reimbursement account, established outside of the School Administrators’ Welfare Trust, was designed as an incentive for active administrators to not unnecessarily use their allocated sick leave.  District funds which are contributed to the account may be utilized by retired administrators to pay for medical premiums and long term care premiums in retirement.   AIG VALIC has been selected as the vendor for the health reimbursement account;

 3. New Business:

G. Association General Account Audit – Stephen announced that the annual association operating account audit will be completed on August 10, 2006.  The audit will include a review of the financial statements from the Silver State Schools Credit Union, Mellon Financial, the CCASAPE accountant’s statements and the CCASAPE treasurer’s reports.  The audit results will be communicated at the September Representative Council meeting;