EC schools retirees’ input on benefits suggested

July 24--Regardless of which option the Eau Claire school board chooses to reduce benefit packages for school district retirees, teachers and other employees deserve input into that decision, several board members said Monday.

The board is considering three proposals to retiree benefits projected to cost $102 million during the next 30 years. A total of 652 teachers and other staff -- about half of the district's workforce -- would be impacted by changes to retirement plans during the next five years.

"I want to ensure that our staff have a chance to offer their ideas," school board President Joe Luginbill said, noting district workers should be "able to express themselves in the way that is most comfortable to them."

Other board members offered similar sentiments, saying district staff should have the opportunity to offer their thoughts about retiree benefit cutbacks. Board member Aaron Harder said projected cost savings matter but "the really important variable is how is the staff receiving this."

"The idea to get input from staff would be a good one," he said.

District officials conducted three listening sessions this month about proposed changes to retiree benefits and plan more discussions with staff in the fall. Each proposal would significantly curb district spending for retirement benefits.

The first option would save the district $42.4 million over 30 years and wouldn't begin impacting retirees until five years after its implementation. The second would save $50.6 million and would imapct affected workers after three years, while the last would save $57.9 million and would start after its adoption.

District staff voiced many questions about proposed retirement changes during listening sessions, district executive director of business services Abby Johnson said. To reduce retirement costs, district officials are proposing giving a fixed amount toward that benefit instead of tying it to health and dental insurance costs that have risen significantly over time.

Currently retiree benefit costs make up 4.2 percent of the district's annual budget, Superintendent Mary Ann Hardebeck said. While that cost has plateaued in recent years, the amount of money the district would be obligated to pay for future retirement costs is prompting district officials to reduce them, she said.

"We've been advised to try to get our annual (retirement benefits) costs down to 3.5 percent of our annual budget in the next 10 years," Hardebeck said.

School boards across Wisconsin have altered worker retirement plans as more districts have faced financial struggles.

In addition to more listening sessions, future attempts to discuss retirement benefit changes with staff could include a staff survey, board members said.

"There are certain groups who want to share how this impacts them ... I think they want to be heard," board member Chris Hambuch-Boyle said.

Contact: 715-830-5911,[email protected]

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