Local benefits likely would follow ex-schools chief to new job [The Leader-Telegram, Eau Claire, Wis.]

June 30--Even if Ron Heilmann is named superintendent in the Pulaski school district, Eau Claire school district taxpayers presumably will continue to foot the bill for most of his health and dental insurance costs.

And if precedent is any indication, taxpayers in the Pulaski district may pay Heilmann, Eau Claire school district superintendent from 2008 to July, extra money in lieu of the benefits he won't need from Pulaski because he's receiving them from Eau Claire.

Heilmann is one of two finalists for the superintendent job in Pulaski, a school district northeast of Green Bay. Milt Thompson, who previously worked as superintendent in the Beloit and North Chicago school districts, is the other finalist.

The 2013-15 Wisconsin state budget includes a provision to address public-sector retirees' compensation during retirement, but that measure doesn't appear to let Eau Claire taxpayers off the hook when it comes to paying Heilmann's health and dental insurance tab that will total at least $76,752 until the 57-year-old Heilmann turns 65. Legislators said the bill addresses state retirement funds but not other retirement benefits negotiated locally, such as insurance costs.

State Rep. Dean Knudson, R-Hudson, a member of the budget-writing Joint Finance Committee, said Thursday the provision to stop so-called "double-dipping" remains in the budget the Legislature sent to Gov. Scott Walker, who is scheduled to sign it today.

Knudson said it's his understanding that the double-dipping provision relates exclusively to Wisconsin Retirement System benefits and would not affect fringe benefit agreements negotiated between public employees and local governments.

"Private agreements are private agreements, so that may still stand," Knudson said.

Contract changes

Heilmann left his Eau Claire job in July after the school board expressed dissatisfaction with his job performance. He replaced interim Superintendent Jim Leary and former Superintendent Bill Klaus.

Heilmann decided to retire from the Eau Claire district, meaning, according to terms of his contract, that taxpayers are responsible for paying 87.4 percent of his health and dental insurance costs until age 65, based on figures from the 2011-12 school year. That total could change, depending on the school district's health insurance costs, and could rise if health insurance costs increase.

Heilmann initially wanted to resign, not retire, from the district, Eau Claire school board members have said, and he balked at accessing his state retirement plan, presumably because doing so would have reduced his monthly benefit payments.

The board changed the wording of Heilmann's contract to mandate he actually retire from the district and access his state retirement fund to receive health and dental coverage. He ultimately agreed. But the board didn't change the provision requiring taxpayers pay for his health and dental insurance.

"Our focus was on understanding very clearly what it meant to retire," school board President Carol Craig said. "(Changing health and dental insurance retirement benefits) was not something we discussed."

Districts differ

The board wanted to clear up retirement wording in the wake of a scandal involving Klaus' attempt to receive his $267,209 early retirement stipend despite his not having officially retired from the school district.

Board members removed the clause guaranteeing district taxpayers are responsible for paying health and dental benefits last year when they negotiated the contract of Heilmann's successor, Mary Ann Hardebeck. They took the action because Hardebeck was 64 and she soon would be eligible for Medicare.

According to sources familiar with contract negotiations between Wisconsin school district administrators and school boards, Heilmann's deal is relatively normal in terms of his receiving health and dental insurance benefits in retirement but is somewhat uncommon in that he received those benefits after only four years as superintendent in Eau Claire. Most Wisconsin educators must work for longer in one district before receiving retirement benefits that are fully or nearly fully paid, they said.

Steve Weld, an Eau Claire attorney who represents multiple Wisconsin school districts, said while some school districts require superintendents to remain for longer periods before they qualify for paid health insurance, each superintendent's contract is different. Weld has represented the Eau Claire school district in the past but was not involved with negotiations regarding Heilmann's contract.

"Sometimes school boards have to look at what will attract a superintendent to their district and keep them there," Weld said. "Perhaps (district-paid health and dental insurance) was something (Heilmann) really wanted in that contract."

Controversial decision

The district's paying most of Heilmann's health and dental insurance costs even though he is free to work elsewhere prompted criticism locally when it was announced. Some residents were upset to learn they would pay for Heilmann's health and dental insurance even if he subsequently went to work for another district.

"It just doesn't seem right," Eau Claire resident John Lacey said in reference to the deal reached in April 2012. "He was only here for four years, and now we're stuck with the bill."

Heilmann hasn't been hired by the Pulaski school board, and details of his contract if he is hired haven't been worked out. But if his contract follows that of many other educators hired for jobs after they retire, Heilmann could command higher pay because Pulaski taxpayers won't have to pick up his health insurance costs.

Weld and other sources familiar with school administrators' contract negotiations said retired administrators who then return to work elsewhere typically seek annual salaries as much as several tens of thousands of dollars higher than those listed for their positions because the districts hiring them don't have to pay for their benefits.

"In some ways their having retired makes them more attractive candidates," Weld said, noting some districts grant the higher pay requests while others don't.

School administrators may have a difficult time obtaining fully paid health insurance as part of their retirement agreements in future years because of rising costs, Weld said.

"As that cost continues to climb, more districts are going to question making that part of the deal," he said.

Reporter Eric Lindquist contributed to this report. Emerson can be reached at 715-830-5911, 800-236-7077 or julian.emerson@ecpc.com.

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