3065: Fringe Benefits to Employees

  1. Except as provided below, Educational Service Unit 4 will provide employees employed on a Full-Time Equivalency (F.T.E.) of not less than 50% Family PPO Blue Cross/Blue Shield Health Insurance, $1200.00 Deductible* with PPO 100% A, 75% B with 50% C coverage – option 2 dental, prorated according to their actual F.T.E. For example, Educational Service Unit 4 will pay 75% of the cost of the plan for an employee working an F.T.E. of 75%. Employees who work more than half-time but less than full-time will be responsible for providing the remaining amount if they desire the health insurance. Employees who are employed on a less than 50% F.T.E. shall not receive health insurance or an opt-out payment.
  2. Eligible Opt-out Arrangement. 
    1. No employee shall be allowed to decline group health coverage for purposes of receiving the 403(b) contribution described below (the “opt-out payment”) unless the employee has filed a signed attestation with the administrator's office certifying that the employee and all other individuals for whom the employee reasonably expects to claim a personal exemption deduction for the taxable years covered by the applicable school year will have minimum essential coverage during the term of the school year.  Employees are not eligible for the opt-out payment if they obtained the outside coverage in the individual market, whether or not obtained through the Health Insurance Marketplace.
    2. The employee must file an attestation, on a form provided by Educational Service Unit 4, which certifies that the employee and the employee’s applicable tax family members are covered by an alternate health insurance plan which aligns with the requirements of the preceding paragraph. The attestation must also absolve Educational Service Unit 4 of responsibility for any future financial ramifications imposed as a result of the employee's decision to decline participation in the service unit's health plan and any misrepresentations of the service unit’s insurance offer made by the employee in procuring the outside coverage.
    3. Any employee choosing the opt-out arrangement must provide the attestation at least annually during the timeframe established by Educational Service Unit 4.  Failure to comply with all of the provisions of the “Eligible Opt-out Arrangement” will result in the denial of the opt-out payment even if the employee declined health coverage.
  3. For employees hired prior to July 1, 2020: Educational Service Unit 4 employees who participate in the eligible opt-out arrangement will receive an opt-out payment to their 403(b) account that is calculated according to gross salary and years of service with ESU 4. Individuals with 1-5 years of service will receive 20% of their gross salary; 6-9 years of service will receive 25% of their gross salary; and individuals employed for years thereafter will receive 30% of their gross salary. The 403(b) contribution will not exceed $1,500.00. In no event will any amount be provided to the employee in the form of a cash payment
  4. For employees hired beginning July 1, 2020 and later: Educational Service Unit 4 employees who participate in the eligible opt-out arrangement will receive an opt-out payment to their 403(b) account in an amount that is calculated according to gross salary and years of service with ESU 4. Individuals with 1-5 years of service will receive 20% of their gross salary; 6-9 years of service will receive 25% of their gross salary; and individuals employed for years thereafter will receive 30% of their gross salary. The 403(b) contribution will not exceed the cost of the single health/single dental plan with the service unit’s health insurance carrier of the same type of coverage provided in paragraph 1. In no event will any amount be provided to the employee in the form of a cash payment.
  5. All individuals employed by Educational Service Unit 4 shall receive long term disability coverage based on the individual's current gross salary.
  6. All individuals employed by Educational Service Unit 4 shall receive group life insurance with a maximum coverage of $30,000.00.

*Effective September 1, 2021, the ESU 4 Board agreed to provide health insurance at a $1200 deductible.

Adopted on: May 9, 2011
Revised on: February 8, 2016
Revised on: Aug. 12, 2019
Reviewed on: Feb. 10, 2020
Revised on: March 9, 2020
Revised on: Feb. 8, 2021