John Curry and Steve Buser: The rehire issue

From John Curry, August 29, 2006

Subject: Re: Rehire issue

Dr. Buser - thank you for your input. I will share with the troops. I'm more inclined to think that their "no" vote was cast so as not to "take heat" from many school districts who are being subsidized by STRS by having STRS fork over the monies for the rehires' health coverage instead of the $$ coming out of their school district's budgets. I think this was the case especially with the Dr. Puckett "no" vote as he represents the DOE as a designee of Ms. Zelman. Also, a "yes" vote from him would certainly irritate the OSBA. As far as Ms. Ramser, well .... maybe she can explain her rationale.

Your suggestion re: a plan whereby rehires not be given subsidy certainly seems worth exploring.

John

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From Steve Buser, August 29, 2006

To: John Curry

Subject: Rehire issue

I was not at the meeting when the second vote was taken on health insurance for rehires. I thus cannot comment on the motives of any voters. However, when the original vote was taken several months ago, I had been hoping for an alternative proposal in which rehires would remain eligible for insurance but would not get the subsidy. My reasoning, and perhaps that of others on the Board as well, was as follows:

As strange as it might seem, retirees with STRS health care actually benefited from having rehires in the pool in so far as rehires are typically healthier and have less health care costs than the average retiree. That meant that average cost per insured person was lower, and thus premiums were lower with rehires in the pool. What was bad about the former system was that rehires also received a subsidy, which was a drain on the health care fund. In my opinion, the best of all possible worlds would have been to keep the rehires in the pool, and thereby lower the average premium cost for all, but not give rehires the subsidy, and thus eliminate the drain.

Perhaps something along these lines is what the other "no" voters had in mind.

Steve