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Monday, January 11, 2010

Savings from eliminating Indemnity Plan

Question: Last year, the district got rid of the “Cadillac” health insurance plan in the BPTA’s contract in order to save money. What I want to know is, why didn’t the district use the money it saved to reduce taxes instead of bringing back teachers who had already been laid off?

Answer: Even though the Broadalbin-Perth Teachers Association was under no obligation to open its contract to renegotiation before it expires in 2012, association members agreed to renegotiate the health care portion of the contract last year in order to help save the jobs of five colleagues who otherwise would have been laid off.

District administrators and the Board of Education agreed to retain those positions in order to gain the significant savings the district could realize by eliminating the Blue Cross Blue Shield Indemnity Plan from the BPTA contract. Eliminating this plan will provide significant savings for the district that will go toward both retaining teachers and limiting the tax levy in the coming years.
- answered by Stephen Tomlinson, District Superintendent

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