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Mashpee Public Schools <br /> Mashpee, Massachusetts <br /> TO: School Committee <br /> FROM: Ann Bradshaw <br /> DATE: November 30, 2010 <br /> Group Health Insurance <br /> Introduction <br /> You may remember that during negotiations last year the town manager offered to <br /> extend a benefit enjoyed by town employees to school staff. The agreement <br /> between the town manager and the school committee included: <br /> • For every school employee enrolled in Master Health Plus who changed to <br /> a less expensive plan, the town would pay the employee a $1,000 annual <br /> bonus payment for the life of the three-year contract. The school district <br /> was responsible for providing information to staff enrolled in Master <br /> Health Plus, helping them to compare the benefits and costs of less <br /> expense plans offered by the town. <br /> • The town would allocate the net savings to the school committee. This <br /> was estimated to be $48,000. <br /> Unfortunately, the town is unable to honor the agreement. Because the agreement <br /> was incorporated into negotiated contracts, the school committee is responsible <br /> for reimbursing the employees. <br /> Reimbursement <br /> There are eight school employees who agreed to switch from Master Health Plus <br /> to less costly plans. We plan to reimburse them using $8,000 from the retirement <br /> account. This is a salary account that is used for contractual costs associated with <br /> retirement. <br /> Although it is preferable to use the current year retirement account for those who <br /> retire at the end of each school year, we are able to use the next fiscal year <br /> retirement account if necessary. This allows us a small measure of flexibility <br /> within the retirement account. <br />