Everett School Employee Benefit Trust

Darla distributed the financial report for April and reviewed the report with trustees.

Darla asked for direction on how often the trustees wanted a money market update from Curt Haldorson. After discussion it was agreed that a presentation every 6 months would be enough unless something significant (good or bad) happens.

Darla reported that the next audit is expected to run between $8500 and $9000 including an 11-18% increase for SRA (fraud risk). She said that Moss Adams feels there will be less expense and time involved because we now operate on a cash basis rather than an accrual basis. In addition there will be clear, up-front communications about any additional costs. After discussion a motion was made seconded and approved to hire Moss Adams for the upcoming audit.

Darla provided the trustees with information regarding “Benny” a new feature for the flex plan. The Benny card (MasterCard) provides a convenient way to access health care FSA contributions. The cost of providing this service is $1.50 per employee with 4% of the total employee contribution held by MasterCard for future costs. The card can only be used for medical. Child care costs would continue to be paid for by the employee and then reimbursed through the flex plan. After discussion it was agreed that Darla would arrange for a presentation.

Program Utilization Statistical Report

Molly provided copies of a Program Utilization Statistical Report from Horizon Behavioral Services and reviewed the report with trustees.

Unpaid Full-Time/Part-Time Leave

Molly presented information regarding medical benefits for employees who returned to work part-time after being on unpaid leave. The current practice is to reduce the employee’s benefit FTE to a part-time level which results in a higher out-of-pocket premium for them. She recommended providing a maximum of 12 months of employee rate coverage for all employees who are on an unpaid medical or L & I leave regardless of whether they are full or part-time. After discussion the trustees agreed and the recommendation was approved. This policy change is retroactive to January, 2004.

Election of Officers

John Morrill and Sue McCann were elected as chairperson and secretary for 2004-05.

Claims Experience

Tom provided copies of the paid claims experience for the first four months of the 2004 plan year. He reported that claim costs per employee were down 5%. Significant stability in claims cost and the increase in state funding are responsible for a more stable situation for the coming year.

Next Meeting

The next trust meeting will be held on June 21^st at 1:30 p.m. The August 16^th meeting is scheduled for 9:00 a.m. and the August 30^th meeting is set for 2:30 p.m. All meeting will be held in conference room C3 at the center.