FAQs on Tentative Agreement

1. What is the highest amount the December Bonus could be?
If no new employees sign up to purchase benefits for the district, the bonus pool would be (3,000,000 ‒ (722 X 3000)) 834,000. This amount divided by approximately 1900 members = $439 before taxes.
2. Why is the cost for people who are buying medical from the district different for people who enroll in the plan after January 1?
Two reasons:
i. People who are currently buying medical pay a “blended rate,” which averages the lower cost of 2008 medical premiums with the increased premium rate that takes effect on January 1st. Since premiums are taken out over 10 months, but coverage is provided for twelve months, this increased amount covers the premiums for August and September.
ii. New enrollees will start pre-paying premiums in February even through their coverage will not start until May. This pre-payment will cover their August and September premiums.
3. If a total of 1,000 people enroll in medical, what will be the amount of the December bonus?
If a 1,000 or more members enroll in medical, there will be no December bonus.
4. Why are members only being given ten days to consider this offer before voting?
It is important to finalize this contract before the legislature makes mid-year cuts to school districts’ funding. Draconian state actions could jeopardize any agreement that is not ratified.
5. If more than 1,000 people enroll in medical through the district, how will the stipend change?
If more than 1,000 people enroll, the stipend will be reduced from $333, so that only $3 M in total will be expended. For example, if 1,200 people enroll, the annual amount will be reduced from $3,000 to $2,500. Distributed over the nine remaining paycheck, this will represent a $277 stipend.


6. If the new Board is really supportive of teachers, why is there no salary increase?
Given the state budget reductions, the District does not appear to be able to afford an increase in teachers’ salaries, or additional medical contributions. All compensation agreements must be approved by the County Office of Education. It is unlikely the County would approve an agreement that put the district at risk of bankruptcy.
6. If every member enrolls in medical, what would the rate be?
If all 1900 members enroll in medical, the monthly stipend will be reduced to $157. The deduction for medical coverage would increase accordingly.
7. On the first page of the Tentative Agreement, what is the purpose of the phrase “subject to negotiation” when referencing potential plan implementation costs?
If the carrier imposes any additional plan implementation costs which are not now known, and these costs could cause the district to spend more than $3M for medical, these costs would be subject to negotiations between the parties to determine who will pay them.
8. Will the County Office of Education approve this agreement?
Currently, the Country Office of Education is very conservative in approving any agreement that could lead to increased costs. However, our tentative agreement clearly states the District’s commitment to reducing costs. These cuts will in all probability be specified and enacted before the County moves to approve the agreement or disapprove the agreement. Furthermore, the structure of this agreement limits the district expense to $3M for calendar year 2009. There is no potential for an increasing financial liability due to potentially increasing premiums, or in an increasing number of enrollees. Because the District’s financial exposure is defined in the agreement, it is more likely that the Country will grant its approval.
9. How much would an employee have deducted from their pay if they enroll in single Kaiser after January 1?
$73.97, if 1,000 or less members sign up for coverage through the District.
10. Is it true that if a member chooses not to purchase benefits through the District, the agreement offers no increase in total compensation?
That is true. There would be no increases in total compensation for that member. However, this agreement provides for members not currently participating in a District offered medical plan, the ability to receive a monthly District medical contribution if their other coverage is lost for whatever reason. These teachers also have the potential for a one time bonus if fewer than 1,000 teachers sign up for coverage through the District.
11. Does the new Board really believe that this offer will solve the district’s recruitment and retention problems?
This agreement will not solve all the district’s recruitment and retention problems, but it will allow some teachers to continue in the district and will encourage some new teachers to accept positions.
12. The last paragraph on the first page of the tentative agreement discusses the need for budget reductions. What is the protection for librarians and music programs?
This agreement makes no stipulations regarding which programs will be eliminated. Cost reductions are appropriately the purview of the Board.
13. Why will newly enrolling members have deductions for medical in February and March, if their coverage does not begin until May?
The February and March deductions are advance payment for August and September medical coverage.
14. How does this agreement help members who plan to retire in the near future?
Because there is no increase in base salary, there will be no increase in retirement pay. It is unfortunate, but the district is not able to afford a salary increase at this time.
15. After 2010, will the district still continue to provide at least $3.3 M for medical benefits?
Yes.
16. Why don’t we keep the agreement open and hope for increases for next year?
If the agreement is still open, it would be easier to the district to unilaterally reduce salary. The best way to avoid this possibility is to close and ratify the agreement.
17. What would happen if the majority of members vote “No” on the agreement?
Your Bargaining Team and the District would need to go back to the table. There is no guarantee as to how long the process would take. There would be no District medical contribution and no potential bonus, as outlined in the Tentative Agreement, unless these terms were renegotiated. Further deterioration of the budget could result in a worse deal for teachers.
18. The agreement explains how the premiums to Calpers can be paid with pre-tax dollars through a 125 plan. Can employees who purchase benefits on their own pay these premiums through the 125 plan?
No.
19. How do we get an increase in summer school rates?
Refuse, as a group, to teach summer school at the current rate.
20. Why is the summer school rate tied to the intervention rate?
Both of these rates apply to same type of remediation work with students. It makes sense that the rates be equal.
21. If a member is laid off at the end of the year, will they get a rebate on the premiums they have already paid?
Members who are laid off at the end of the year will receive a rebate for premiums that would have extended their coverage beyond July 31st. They can then elect to purchase benefits through COBRA for the remainder of the year and beyond.
22. Why is there no retroactive pay for 2007?
Is does not appear that the district can afford retroactive pay for 2007. This is the best agreement that is possible in the current economic climate.
24. Can we vote “yes” or “no” on parts of the Tentative Agreement, or are we voting on the T.A. as a package?
The T.A. was negotiated as a package proposal.

MDEA/CTA/NEA