Revised Retirement Benefit Effective July 1, 2013 Revised 04/01/2014

1. Revised Retirement Benefit Effective July 1, 2013 Revised 04/01/2014

2. Current Understanding • BOE approved the basic concept of this plan at the April 7, 2013 Special Board Meeting. • Plan will go into effect 7/1/13 • You must retire to get the benefit.

3. Three Categories • Grandfathered Status • Transitional Status • Young Employee Status

4. Grandfathered Status • Those employees that are eligible to retire on or before 6/30/2015. • Employees in this class are eligible for the retirement benefits outlined in the last collective bargaining agreement. • Teacher • 25 years • 8 years of insurance or • 3 years of insurance & 100 days of last year’s salary contributed to an Health Reimbursement Account • 15 years – 24 years • 3 years of insurance & 60-96 days contributed to Health Reimbursement Account.

5. Grandfathered (Con’t) • Secretary • 18 years • 3 years of insurance (or 36 mos. of contributions to HRA) • 15 years • 2 years of insurance (or 24 mos. of contributions to HRA) • Can substitute dental coverage • Para-Professional (full time status prior to 2010) • 15 years • 3 years of insurance (health or dental insurance only) • $12.50/day of unused sick leave

6. Grandfathered (Con’t) • Custodial • 18 years • 3 years of insurance • 15 years • 2 years of insurance • Employees hired prior to 3/21/2009 and who qualify for retirement (rule of 75) • $40,000 one time contribution into HRA

7. Grandfathered Status (con’t) • Caveat • We may need to limit the dollar amount of the District’s contribution towards covering the cost of health insurance provided. This may be limited to the COBRA amount for 2014. • Assuming our 2013 health insurance premium goes up 8% in 2014, the COBRA amount could be: • Single – $9,150 (1/1/14 est. $9,882) • Employee +1 - $17,955 (1/1/14 est. $19,391) • Family - $27,600 (1/1/14 est. $29,840)

8. Grandfathered Status (Con’t) • The maximum amount contributed by the District to cover the cost of the retiree’s insurance going forward in future years may be: • Single - $10,000 • Employee +1 - $20,000 • Family - $ 30,000 • We are assuming that we will not reach those levels due to a need to restructure insurance benefits as a result of the Health Care Reform Act. {Cadillac Tax implications}

9. Transitional Employees • Those employees that are eligible to retire between 2016 – 2023. • A Transition Calculator was developed by Milliman Actuarial Services to design a benefit that would provide for a benefit that would be similar to the one you would have received under the old CBA.

10. Transitional Employees (Con’t) • A Health Reimbursement Account was set up in your name through Mid-America. • The District contributed a lump sum payment into your HRA based on your pro-rata share of the benefit (as determined by Milliman), based on your age and years of service. • Each year the Board will contribute a designated amount into your HRA account, based on your employment class and insurance benefit that year.

11. Transitional Employees (Con’t) • Teachers • Single or Waived Insurance - $3,800 • Employee +1 or Family – $7,600 • Support Staff (Custodians, Secretaries & Para’s) • Single or Waived Insurance - $1,900 • Employee +1 or Family Insurance - $3,800

12. Young Employees • Those employees that are first eligible to retire on 7/1/2024 or after. • Each year, beginning in 2013-2014 the Board will deposit a designated amount based on your employment class and insurance benefit that year.

13. Young Employees (Con’t) • Teachers • Single or Waived Insurance - $3,800 • Employee +1 or Family – $7,600 • Support Staff (Custodians, Secretaries & Para’s) • Single or Waived Insurance - $1,900 • Employee +1 or Family Insurance - $3,800 • Issues to still work out • Portability • Vesting