08-12-2008 Regular School Board Meeting
Agenda Item #32


Title
Self-Insured Medical Trust Fund Transfer

Discussion

An amount of $3.6 million was under-budgeted for FY 2007-08 to cover all of the actual Board contributions made for that time period to the employee self-insured medical plan trust fund. 

Brevard Public Schools' employee medical plan has been self funded since January 1, 2000. In addition to normal Board and employee premium contributions to the plan's trust fund, the Board has contributed $14.3 million from the general fund to ensure that the trust remained viable, solvent, and qualified under Florida state insurance requirements as follows: $1.3 million (2000); $5 million (2001); and $8 million (2002). Subsequently, the trust has repaid $9.2 million of this amount to the general fund as follows: $2 million (2007 4% Board funding reduction); $1.2 million (2007 trust assumption of opt out funding); and $6 million (2007 transfer to general fund). The amount remaining that is owed to the general fund by the trust is $5.1 million. Trust reserves are projected to be $19 million at 2007-2008 fiscal year end and are robust enough to cover the payment of these funds.

 



Recommendation

Transfer $3.6 million from the employee self-insured medical trust fund to the general fund to cover Board contributions to the trust of $3.6 during FY 07-08 which were not budgeted.



Meeting Date(s)
Information - 8/12/2008
Consent after Information8/25/2008

Authority for Action
FS 1001.51 11.d

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Agenda Item will not Require the Expenditure of Funds

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Contact
Susan G. Standley, Director, Compensation & Benefits