Understanding Benefits and Insurance in Finance Committee - ICSD
Explore the comprehensive details of benefits and insurance in the Finance Committee of ICSD, covering mandatory and voluntary benefits, such as FICA/Medicare, Unemployment Insurance, Workers Compensation, NYS Teachers Retirement, and more. Delve into budget allocations, contributions, and key information on each benefit category for a deeper understanding.
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EVERYTHING BENEFITS Finance Committee December 20, 2022
TYPES OF BENEFITS Mandatory Benefits (calculated on earnings) FICA/Medicare Unemployment Worker s Compensation NYS Teachers Retirement Voluntary Benefits NYS Employee Retirement Health/Dental/vision Insurance 403B Savings FSAs - Healthcare Flexible Spending & Dependent Care Flexible Spending Accounts
FEDERAL INSURANCE CONTRIBUTIONS ACT (FICA) (a.k.a. Social Security/Medicare) 9030-830-00-0000 ~~ 22/23 Budget: $5,443,622 District Contribution: Employee earnings multiplied by 7.65% (6.20% = Social Security and 1.45%= Medicare) Determining the Budget: Salary projection multiplied by 7.65%
UNEMPLOYMENT INSURANCE 9050-850-00-0000 ~~ 22/23 Budget: $80,521 The District is assessed an amount by NYS on a quarterly basis to support staff who are unemployed from the District through no fault of their own. (ie: Position reductions) While it is a mandatory benefit for employees, it is currently not a substantial expense to the District. In the past expense has elevated close to $200,000 (GAP elimination years). While the District has reduced the budget since that time, we continue to maintain an adequate amount to cover any unanticipated spike in unemployment. 21/22 Expense: $17,065
WORKERS COMPENSATION INSURANCE 9040-870-00-0000 ~~ 22/23 Budget: $1,070,823 Mandated insurance that provides benefits to employees who suffer work-related injuries or illnesses. ICSD belongs to the TST School Workers Compensation Plan - a cooperative group of the TST component districts. The Board is made up of representatives from each District (typically the Business Admin) and the plan is managed by the St Lawrence- Lewis BOCES. Annual liability expense for each District varies and is determined by payroll size for each job classification in addition to a historical claims experience. 22/23 Anticipated Expense: $1,070,823
NYS TEACHERS RETIREMENT SYSTEM 9020-820-00-0000 ~~ 22/23 Budget: $5,038,154 NYSTRS administers retirement benefits for public school teachers and administrators District Contribution: Based on pensionable earnings of NYSTRS members in the last completed fiscal year multiplied by the employer contribution rate (ECR) determined through an actuarial valuation of NYSTRS assets and liabilities over a five-year period. 22/23 Rate = 10.29 Determining the Budget: We use the pensionable earnings for the last completed fiscal year and factor in the negotiated salary increases and apply an estimated rate provided by the NYSTRS (typically in November) to determine a budget amount. 21/22 : 1018 Employees Reported ~ Rate 9.8% ~ Total Expense $4,236,091
NYS LOCAL (EMPLOYEE) RETIREMENT 9010-810-00-0000 ~~ 22/23 Budget: $2,377,617 NYSLRS administers retirement benefits for the non-teaching school district employees. District Contribution: Based on pensionable earnings of NYSLRS members in the last completed fiscal year multiplied by the contribution rate determined by a NYSLRS for each Tier. An employee s Tier is determined by their initial membership date in the system. Current ICSD employees primarily fall in the Tier 3,4, and 6. (rates range from 8.10% - 12.9%) Determining ICSD Budget: We use the pensionable earnings for the last completed fiscal year and factor in the negotiated salary increases and apply an estimated rate to determine the budget amount. 21/22: 446 Employees Reported ~ Total Expense $2,091,409
HEALTH INSURANCE-ACTIVES/PRE-65 RETIREES 9060-840-00-0000 ~~ 22/23 Budget: $23,634,083 Active Staff and Pre-65 Retirees who meet criteria for continued coverage in retirement District is self funded and offering negotiated plans to Administrators, Principals/Directors, Managerial/Confidential Staff, Teachers, Para-Professionals Support Staff and Service Employees. Staff is provided the opportunity to enroll in an Individual or Family Plan and the District cost obligation is equal to 78% - 80% of the premium cost based on the bargaining unit agreements. Current Active Employees: 857 Current Pre-65 Retirees: 139 Total Belly Buttons : 2111
HEALTH INSURANCE - POST 65 RETIREES 9060-840-00-0000 ~~ 22/23 Budget: $23,634,083 Mandatory Medicare Part-B The District currently supports the full cost of premiums for 323 Retirees (433 Belly Buttons) at an estimated annual cost of $4,141,804; 299 retirees (420 Belly Buttons) pay 10%-11% of the premium cost per plan with an estimated District cost of $502,182 and 14 surviving spouses pay the full premium. (Estimates are based on the premium rates set by the District).
DENTAL INSURANCE 9060-841-00-0000 ~~ 22/23 Budget: $215,976 District offers three plan levels to active employees only: Low/Medium/High The District contribution is the cost of an individual low plan for all employees. Employees are responsible for the additional premium cost for the plan level above an Individual Low Plan. Determining the Budget: Ameritas submits a rate proposal based on calendar year claims usage to the District. The proposal is reviewed with our representatives at ENV Insurance and rates are adjusted. The District will continue to cover the cost of an Individual plan for active employees. The budget is based on an average enrollment number multiplied by the cost of an individual plan. Current Employee Enrollment: 894 Current Belly Buttons : 1193 Estimated 22/23 Expense: $79,813
VISION INSURANCE 9060-842-00-0000 ~~ 22/23 Budget: $150,000 Active Employees are offered a choice of two plans through Ameritas: VSP or EyeMed The District supports the cost of an individual plan for all employees; currently $8.16/plan. Employee are responsible for the additional premium cost for a family plan. Determining the Budget: Ameritas submits a rate proposal based on calendar year claims usage to the District. The proposal is reviewed with our representatives at ENV Insurance and rates are adjusted. The District will continue to cover the cost of an Individual plan for active employees. The budget is based on an average enrollment number multiplied by the cost of a individual plan. Current Employee Enrollment: 879 Current Belly Buttons : 1127 Estimated 22/23 Expense: $86,072
403(b) Tax Sheltered Annuity A 403(b) plan, also known as a tax-sheltered annuity plan, is a n elective retirement plan offered to ICSD employees. Omni Compliance Services manages the plan to insure the District and its employees are in compliance with IRS regulations. Unlike a 401k plan, a 403(b) plan is funded by the employee only, with the exception of contractually negotiated payments to certain employees upon retirement for unused sick time. The District pays an administrative cost of $6000 through our BOCES contract.
Flexible Spending Accounts The District offers employees two types of Flexible Spending Accounts that are funded through payroll deductions on a pre-tax basis: An Healthcare FSA is an employer-sponsored healthcare benefit that allows employees to set aside funds (2023 Annual Maximum = 3,050) to cover the cost of qualified medical expenses. A Dependent Care FSA is used to pay for eligible dependent care services, such as preschool, summer day camp, before and after school programs and child or adult daycare (2023 Annual Maximum = $5,000). This is a benefit is managed through Pro-Flex Administrators LLC. The District obligation is for this benefit is the administrative cost only $3.65/month/participating employee. Total Estimated Annual District Expense is less than $10,000.
