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Negotiated Insurances & Salary-Related Fringes

I. HEALTH, DENTAL, VISION

Negotiated insurances are included in the collective bargaining agreement. Reschini Insurance is ICTC’s broker for the health insurance program, which is arranged through Armstrong-Indiana insurance Trust, a consortia of Armstrong and Indiana School Districts that make up the Intermediate Unit 28 also known as ARIN. Employees who are half-time or greater have access to benefits through the ICTC. These employees may select to participate in individual or family coverage. Employees less than half-time are not eligible but they may choose to purchase the benefits at their cost if permitted by the provider. The health package includes major medical, including prescription and hospitalization through Highmark. There are two different health packages offered. The first is offered to Administrators and Faculty, and includes a $150 deductible. The other package is offered to all other staff and includes a $250 deductible. ICTC also offers vision and dental coverage. ICTC employees may choose to opt out of the health package and receive 40% of the cost. ICTC’s annual costs for health insurance is a total of $635,000 annually. The breakdown of this amount includes the following: $282,000 for teachers, and $299,000 for all other staff. In addition, $33,000 of this amount is for teachers who opt out of the insurance plan through the ICTC’s waiver option. $21,000 accounts for other staff who opt out.

39 staff members are enrolled in the dental program, totaling an annual cost of $37,000. 39 staff members are also enrolled in the vision program, totaling $6000 per year.

Total costs:

• Health Insurance: $635,000 per year

• Vision Insurance: $37,000 per year

• Dental Insurance: $6,000 per year

Cost to employee

The following rates in are monthly amounts. The dental and vision monthly premium is the same regardless of the type of coverage (single, couple, parent/child, or family).

|Select Blue Medical (including prescription drugs) |

| | | | |

| |Instructors and | |All other eligible staff |

| |Administrators | | |

|Single |$551.16 | |$547.92 |

|Couple |$1,567.74 | |$1,559.01 |

|Parent & Child/Children |$1,429.50 | |$1,421.91 |

|Family |$1,749.18 | |$1,738.91 |

| | | | |

|Dental |$78.16 | | |

| | | | |

|Vision |$12.70 | | |

| | | | |

|Retirement |21.40% | | |

II. Life and Income Protection & Retirement (PSERS & 403B)

Life Insurance is also offered to all employees of the ICTC. Administrators receive a benefit of two times their salary, while all other employees receive a benefit of $75,000.

Total Costs:

• Life Insurance: $4700 annually

• Accidental death insurance (Income Protection): $6600.

Every school in the state of PA offers employees a retirement benefit in PSERS. 403(B) plans are also available through a variety of vendors and are offered to all school employees at the ICTC as an optional plan.

III. Salary-Related Fringe Benefits

• ICTC calculates Social Security benefits at a rate of 6.2%. This amount is listed on the paystub under the MEDICARE and FICA items.

• Medical benefits are calculated at 1.45% of the individual income and is listed on the paystub as MEDICARE.

• Unemployment compensation is deducted at a rate of 0.07%

• The employee does NOT pay into worker’s compensation via paycheck deductions. ICTC protects employees through their worker’s compensation PURCHASED insurance plan and absorbs all costs associated.

Purchased Insurances

Total Costs:

• Property: $22,900 per year

• E&O: $7,073 per year

• Auto: $2,900 per year

• Umbrella: 7,400 per year

• Worker’s Compensation: $13,000 per year

The ICTC currently employs the Reschini Group to broker their various insurances. The insurance policy the ICTC purchases is through the PSBA Trust, who owns the policies. The policies include Property, General Liability, Auto, Umbrella, Worker’s Compensation, and Bond.

Property

The Property policy consists of both the real property and also the business personal / incidentals of the ICTC. The price of the property insurance is based upon industrial appraisal of the entire property and the content within the property. The price is determined by square footage of the building, and the prices of what may typically “depreciate” are actually appreciated in this type of coverage. The coverage for the property is 18.9 million dollars and the premium is $22,900 per year. This excludes flood and earthquake, of which the ICTC is covered $1 million (with a $25,000 deductible) and $3 million ($50,000 deductible) respectively.

Auto Policy

The auto policy covers school owned and hired and non-owned automobiles. Personnel traveling in their own vehicles for company business involved in an incident would be covered first under their personal policy. Any extra amount would be covered by this school policy. The amount of coverage for the Auto policy is $1 million per occurrence at an annual cost of $2900.

E&O

E&O policy protects the school against error or omission of educational practices by professional staff. The premium is $7,000 and covers $2 million aggregate and $1 million per occurrence.

Umbrella

The umbrella policy extends underlying limits of all other policies. This is used in the case where all limits of an existing policy are exhausted. The umbrella value is at $5 million and the premium is $7400 annually.

Workers Compensation

Workers Compensation insurance is provided in the situation where an employee is injured on the job. The insurance covers the employees’ wages and benefits for the duration of the recovery. The premium is calculated at a very specific rate. The teacher classification rate per $100 of payroll. The experience modifier is a multiple of rated premium and the rate is determined by class code multiplied by the rate. The premium is $13000 per year.

The bond is primarily for office staff. This covers any office personnel who transport deposits or act as a notary (performance bonds). It may also be used to fix and repair roads in the case of a truck driving school.

Agent Selection and Maintaining Insurance

Currently, the ICTC employs the Reschini Group as a Broker for Insurance Coverage. The coverage is purchased through a trust through the PA School Boards association. When shopping for insurance, it is recommended to review policies AND agents every three to five years. The key is to find someone or some group who is able to handle the complexity of a school. They should provide a letter of introduction and be interviewed before pursuing services with them. Maintenance of insurance plans should be conducted every year or upon acquisition of additional assets or cases of liability. Risk management is a crucial component to overseeing and directing a school.

References:

• Mr. Paul Haines, CPIA, The Reschini Group

Laurel Place 922 Philadelphia Street, Indiana PA 15701

• Mr. Randy Thorton, ICTC Business Manager

Documents:

• ICTC Insurance Policies

• Collective Bargaining Agreement

• Health / Vision/Dental Plan Highlights

• Paystub attachment, Social Security / MEDICARE / UC

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