Human Resources
Information Item |
DATE: | Tuesday, December 13, 2011 |
TO: | School Board Members |
FROM: | MaryEllen Elia, Superintendent |
SUBJECT / RECOMMENDATIONS | |
Early Retiree Reinsurance Program (ERRP) Reimbursement (Human Resources Division) | |
EXECUTIVE SUMMARY | |
In 2010, the Department of Health and Human Services (HHS) established a temporary reinsurance program to reimburse employers for a portion of their early retiree health program costs. Five billion dollars was allocated to reimburse eligible employers beginning June 1, 2010 - December 31, 2013, or sooner, should the funds be exhausted prior to December 31, 2013. The funding was to be administered on a first-come, first-serve basis and applications submitted with errors were to be sent to the end of the line for resubmission.
At the June 15, 2010, meeting, the Board hired Aon Consulting to engage their resources in helping to ensure the district submitted the most complete and accurate application. Aon coordinated activities among its actuaries, attorneys, programmers, and consultants, along with staff from Humana and the District to facilitate a successful application and reporting process. Subsequent to the District receiving its reimbursement, Aon elected to reduce its contracted fee for this service. According to the contract, Aon would have been entitled to receive $345,965, rather than the $125,000 they have chosen to accept. As our long-term partner, Aon hopes this savings of $220,965 will assist the District in meeting the challenges of the current budget year. |
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STRATEGIC OBJECTIVES | |
• Demonstrate best financial practices | |
FINANCIAL IMPACT (Budgeted: No) | |
The District’s net receipt for the ERRP reimbursement for calendar year 2010 is $3,084,653.73, which will help offset the 2012 total health insurance increase of $5.8 million. | |
EVALUATION | |
Aon is in the process of submitting an application for the first six months of 2011. | |
SUBMITTED BY: |
Deborah M. Henry | Daniel J. Valdez | |
General Manager of Employee Benefits & Insurance (813) 272-4665 |
Deputy Superintendent (813) 272-4166 |
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A 9.05 | ||
Hillsborough County Public Schools (Florida) * Mtg.#20111213_480 (Board Meeting) * Section A Item# 9.05 |