CalPERs Expert Debunks District Staff on Retiree Health Insurance: The Sky is Not Falling!
Superintendent Jose Banda and Chief Business Office Gerardo Castillo have been crying wolf: the District’s will go under if it doesn’t address the “unfunded liability” related to the health insurance benefits for retirees.
Matt Goss, the expert representative from CalPERS, which manages the finances for the District’s retiree health fund trust, debunked yet another District staff myth.
According to Mr. Goss, directing his comments to school board, when it comes to the unfunded liability: “You’re doing OK.”
Board Member Hansen Doesn’t Let the Facts Get in the Way of His Story
Ignoring the facts presented by the CalPERS expert, Board Member Jay Hansen, the former labor lobbyist launched into yet another tired attack on educators. At the August 18th school board meeting, Mr. Hansen opined that the District should pay for retiree health benefits “like the building trades–on a pay as you go basis.” When the experts pointed out that the District currently pays for retiree health insurance on a “pay as you go” basis and that the teachers were the only employees contributing, Mr. Hansen barely skipped a beat in shifting his attack: Teachers need to do more to address this crisis today because it’s money that could be spent on today’s children.
Silence on the District’s Massive Reserve Fund and Why the District Can Afford to Pay Cedros
Ironically, with Mr. Hansen chairing the meeting in the absence of board president Christina Pritchett, he made no mention of the millions in the District’s reserve fund that could be used to address the so-called unfunded liability or spent on today’s children. Mr. Hansen and the board also offered no explanation why he and other board members unanimously approved the continued employment of former Hiram Johnson principal Felisberto Cedros even after the District removed him from his position and paid $175,000 to settle a sexual harassment claim against Mr. Cedros.