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  • 1. MCCBRT - December 17, 2010Recap of 2010-2011 Budget Book Fiscal Year End June 30, 2011 2012 2013 2014 2015 2016 Salary package increase included in budget 3.6% or $2.5Mil 3.6% or $2.6Mil 3.6% or $2.7Mil 3.6% or $2.8Mil 3.6% or $2.9Mil 3.6% or $3.0Mil 2011 Budget Book (Beginning Balance) $ (1,140,593) $ (5,400,000) Actions taken and reflected: Class size carried into 2011-2012 (Addl 1 student) 775,000 $775K $775K $775K $775K Enrollment growth (6% above 11 and 3% above 12) 2,100,000 2.00% 0.00% -3.00% -3.00% Additional $6.00 fee increase (total $8.00) 3,000,000 $ 2.00 $ 2.00 $ 2.00 $ 2.00 Additional 12% state aid cut (total 17%) (3,850,000) -3.00% 2.00% 0.00% 2.00% Investment income (300,000) $75K $75K $75K $75K IWI contribution included $856K $1,054K $1,256K $1,457K $1,665K OPEB adjustment (18% Health Insurance Adj) (700,000) Additional 10-11 compensation adjustment (535,000) College size adjustment (enrollment change) (800,000) Increase to ADA funding to actual historical levels (163,143) 11 - 12 Financial Plan Budget Book (Page 25) $ (1,288,539) $ (5,873,143) $ (10,637,385) $ (13,685,635) $ (16,295,625) $ (18,738,233)H:AnalysisBRTBRT Financial plan budget deficit closing the gap 2010December17updated2011Apr7.xlsxBudget Book RecapPrinted: 4/7/2011 at 12:36 PM Page 1 of 5
  • 2. MCCBRT - December 17, 2010Current Early Retirement Plan and CostsRequirements of Early RetirementI. Ten (10) consecutive full years of service to MCC & fifty-five (55) years of age orII. Thirty (30) years of full time service to MCC orIII. Ten (10) consecutive full years of service to MCC & thirty (30) years of retirement credit in PSRS or PEERSAnnual Costs of Current Early Retirement PlanI. Special payment (aka Incentive pay) $ 700,000II. Insurance benefits $ 2,600,000III. Premium pay (Faculty, Staff & Admin) $ 1,600,000 $ 4,900,000Components of Early RetirementI. Special Payment $ 700,000 A. Formula based on age and current wage at retirement 1. 75% of final contract or annual salary if taken at age 55; reduced by 5% for every year over age 55; increased 1% for each year over 15 years of service to the district up to a maximum of 10% for early retirees 62 years of age or less at time of early retirement B. Payout option of lump sum or two installments C. Average 22 Retirees per yearII. Insurance Benefits $ 2,600,000 A. 100% Employee (Individual) and 50% of dependent premium thru age 65 for health, vision, dental and group term life B. OPEB includes the future insurance cost of the current work force - the primary component of the OPEB cost C. 141 early retirees receiving some health benefitIII. Premium Pay for Reemployment $ 1,600,000 A. Up to 13.86 work units or 550 hours per fiscal year. B. Bumping rights - Assigned following the placement of FT faculty with full load and and before part time or overload assignments. C. 69 early retirees benefitingH:AnalysisBRTBRT Financial plan budget deficit closing the gap 2010December17updated2011Apr7.xlsxCurrent Plan and Costs 2 of 5
  • 3. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN 1 MCC 2 BRT - December 17, 2010 3 Option #1: Retirement Election - Incentive Pay - Current plan versus implementing rule of 80 with Incentive Payment only (Insurance discontinued) 4 Fiscal Year End June 30, Fiscal Year End June 30, 5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 6 Current Costs 7 8 Special/Incentive Payment 725,200 751,307 778,354 806,375 835,405 865,479 878,461 891,638 905,013 918,588 932,367 946,352 960,548 974,956 989,580 1,004,424 1,019,490 1,034,783 9 Insurance 2,818,375 2,954,890 3,097,227 3,241,485 3,398,876 3,667,034 3,836,034 4,013,643 4,200,333 4,396,600 4,602,970 4,819,999 5,048,276 5,288,422 5,541,095 5,806,988 6,086,838 6,381,422 12 Premium Pay 1,600,000 1,657,600 1,717,274 1,779,095 1,843,143 1,909,496 1,938,138 1,967,211 1,996,719 2,026,669 2,057,070 2,087,926 2,119,244 2,151,033 2,183,299 2,216,048 2,249,289 2,283,028 13 5,143,575 5,363,797 5,592,855 5,826,955 6,077,423 6,442,009 6,652,634 6,872,492 7,102,064 7,341,857 7,592,406 7,854,277 8,128,068 8,414,411 8,713,973 9,027,460 9,355,617 9,699,233 14 15 16 Rule of 80 Plan - Age plus years of MCC service - implemented July 1, 2013 17 18 Special/Incentive Payment (50% of base with $50,000 max) 725,200 751,307 4,778,986 546,364 562,754 579,637 593,555 602,458 611,495 620,668 629,978 639,427 649,019 658,754 668,635 678,665 688,845 699,177 19 Insurance (retirees before July 1, 2013) 2,818,375 1,748,890 1,874,477 2,177,188 2,034,248 1,895,944 1,667,546 1,423,172 1,161,744 1,073,535 977,389 669,443 339,736 - - - - - 25 Premium Pay 1,600,000 348,096 - - - - - - - - - - - - - - - - 26 3,879,575 2,500,197 6,653,463 2,723,552 2,597,002 2,475,581 2,261,101 2,025,630 1,773,239 1,694,203 1,607,367 1,308,870 988,755 658,754 668,635 678,665 688,845 699,177 27 28 29 Savings 30 31 Special/Incentive Payment - - (4,000,632) 260,011 272,650 285,842 284,906 289,180 293,518 297,920 302,389 306,925 311,529 316,202 320,945 325,759 330,645 335,605 32 Insurance - 1,206,000 1,222,750 1,064,297 1,364,628 1,771,090 2,168,488 2,590,472 3,038,589 3,323,064 3,625,581 4,150,557 4,708,540 5,288,422 5,541,095 5,806,988 6,086,838 6,381,422 33 Premium Pay - 1,309,504 1,717,274 1,779,095 1,843,143 1,909,496 1,938,138 1,967,211 1,996,719 2,026,669 2,057,070 2,087,926 2,119,244 2,151,033 2,183,299 2,216,048 2,249,289 2,283,028 34 - 2,515,504 (1,060,608) 3,103,404 3,480,421 3,966,428 4,391,533 4,846,862 5,328,825 5,647,654 5,985,040 6,545,408 7,139,314 7,755,657 8,045,338 8,348,795 8,666,772 9,000,055 35 36 37 Eligibility Requirements of Early Retirees Components of Retirement Plan - Effective July 1, 2013 (unless noted differently) 38 1. Twenty (20) years of service to MCC 1. Special/Incentive payment - 50% of final contract or salary and capped at $50,000 39 2. Rule of 80 - age plus years of service to MCC 2. Insurance benefit - discontinued 40 3. Elect benefit in first year of eligibility or lose it 3. Premium pay - Board elimination of ERT units. July 1, 2011 has 200 units or 7,936.5 hours. July 1, 2012 and after 0 units or 0 hours 41 4. No bumping rightsH:AnalysisBRTBRT Financial plan budget deficit closing the gap 2010December17updated2011Apr7.xlsxOption1Printed: 4/7/2011 at 12:36 PM Page 3 of 5
  • 4. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN 1 MCC 2 BRT - December 17, 2010 3 Option #2: Retirement Election - Health Insurance - Current plan versus implementing rule of 80 with Insurance benefit only (Incentive Pay Discontinued) 4 Fiscal Year End June 30, Fiscal Year End June 30, 5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 6 Current Costs 7 8 Special/Incentive Payment 725,200 751,307 778,354 808,618 832,876 857,863 870,731 883,792 897,049 910,505 924,162 938,025 952,095 966,376 980,872 995,585 1,010,519 1,025,677 9 Insurance 2,818,375 2,954,890 3,097,227 3,241,485 3,398,876 3,667,034 3,836,034 4,013,643 4,200,333 4,396,600 4,602,970 4,819,999 5,048,276 5,288,422 5,541,095 5,806,988 6,086,838 6,381,422 12 Premium Pay 1,600,000 1,657,600 1,717,274 1,779,095 1,843,143 1,909,496 1,938,138 1,967,211 1,996,719 2,026,669 2,057,070 2,087,926 2,119,244 2,151,033 2,183,299 2,216,048 2,249,289 2,283,028 13 5,143,575 5,363,797 5,592,855 5,829,198 6,074,895 6,434,393 6,644,903 6,864,646 7,094,100 7,333,774 7,584,201 7,845,950 8,119,616 8,405,832 8,705,265 9,018,621 9,346,646 9,690,127 14 15 16 Rule of 80 Plan - Age plus years of MCC service - implemented July 1, 2013 17 18 Special/Incentive Payment (discontinued effective July 1, 2013) 725,200 751,307 4,778,986 - - - - - - - - - - - - - - - 19 Insurance 2,818,375 2,594,890 2,732,227 3,322,285 3,430,476 3,630,174 3,729,378 3,835,776 3,949,754 4,071,718 4,202,099 4,341,353 4,489,959 4,661,626 4,876,690 5,102,719 5,340,313 5,590,106 24 Premium Pay 1,600,000 348,096 - - - - - - - - - - - - - - - - 25 3,543,575 3,694,293 7,511,213 3,322,285 3,430,476 3,630,174 3,729,378 3,835,776 3,949,754 4,071,718 4,202,099 4,341,353 4,489,959 4,661,626 4,876,690 5,102,719 5,340,313 5,590,106 26 27 28 Savings 29 30 Special/Incentive Payment - - (4,000,632) 808,618 832,876 857,863 870,731 883,792 897,049 910,505 924,162 938,025 952,095 966,376 980,872 995,585 1,010,519 1,025,677 31 Insurance - 360,000 365,000 (80,800) (31,600) 36,860 106,656 177,867 250,579 324,882 400,871 478,647 558,318 626,797 664,404 704,269 746,525 791,316 32 Premium Pay - 1,309,504 1,717,274 1,779,095 1,843,143 1,909,496 1,938,138 1,967,211 1,996,719 2,026,669 2,057,070 2,087,926 2,119,244 2,151,033 2,183,299 2,216,048 2,249,289 2,283,028 33 - 1,669,504 (1,918,358) 2,506,913 2,644,419 2,804,219 2,915,525 3,028,869 3,144,346 3,262,056 3,382,102 3,504,597 3,629,657 3,744,206 3,828,575 3,915,902 4,006,333 4,100,021 34 35 36 Eligibility Requirements of Early Retirees Components of Retirement Plan - Effective July 1, 2013 (unless noted differently) 37 1. Twenty (20) years of service to MCC 1. Special/Incentive payment - discontinued 38 2. Rule of 80 - age plus years of service to MCC 2. Insurance benefit - Employee (individual) premium only. No dependent subsidy. 39 3. Elect benefit in first year of eligibility or lose it 3. Premium pay - Board elimination of ERT units. July 1, 2011 has 200 units or 7,936.5 hours. July 1, 2012 and after 0 units or 0 hours. 40 4. No bumping rightsH:AnalysisBRTBRT Financial plan budget deficit closing the gap 2010December17updated2011Apr7.xlsxOption2Printed: 4/7/2011 at 12:36 PM Page 4 of 5
  • 5. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN 1 MCC 2 BRT - December 17, 2010 3 Option #3: Discontinue all MCC Early Retirement Programs 4 Fiscal Year End June 30, Fiscal Year End June 30, 5 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 6 Current Costs 7 8 Special/Incentive Payment 725,200 751,307 778,354 808,618 832,876 857,863 870,731 883,792 897,049 910,505 924,162 938,025 952,095 966,376 980,872 995,585 1,010,519 1,025,677 9 Insurance 2,818,375 2,954,890 3,097,227 3,241,485 3,398,876 3,667,034 3,836,034 4,013,643 4,200,333 4,396,600 4,602,970 4,819,999 5,048,276 5,288,422 5,541,095 5,806,988 6,086,838 6,381,422 12 Premium Pay 1,600,000 1,657,600 1,717,274 1,779,095 1,843,143 1,909,496 1,938,138 1,967,211 1,996,719 2,026,669 2,057,070 2,087,926 2,119,244 2,151,033 2,183,299 2,216,048 2,249,289 2,283,028 13 5,143,575 5,363,797 5,592,855 5,829,198 6,074,895 6,434,393 6,644,903 6,864,646 7,094,100 7,333,774 7,584,201 7,845,950 8,119,616 8,405,832 8,705,265 9,018,621 9,346,646 9,690,127 14 15 16 Rule of 80 Plan - Age plus years of MCC service - implemented July 1, 2013 17 18 Special/Incentive Payment (50% of base with $50,000 max) 725,200 751,307 4,778,986 - - - - - - - - - - - - - - - 19 Insurance (retirees before July 1, 2013) 2,818,375 1,748,890 1,874,477 2,177,188 2,034,248 1,895,944 1,667,546 1,603,603 1,347,588 1,169,245 977,389 669,443 339,736 - - - - - 25 Premium Pay 1,600,000 348,096 - - - - - - - - - - - - - - - - 26 3,543,575 2,848,293 6,653,463 2,177,188 2,034,248 1,895,944 1,667,546 1,603,603 1,347,588 1,169,245 977,389 669,443 339,736 - - - - - 27 28 29 Savings 30 31 Special/Incentive Payment - - (4,000,632) 808,618 832,876 857,863 870,731 883,792 897,049 910,505 924,162 938,025 952,095 966,376 980,872 995,585 1,010,519 1,025,677 32 Insurance - 1,206,000 1,222,750 1,064,297 1,364,628 1,771,090 2,168,488 2,410,041 2,852,745 3,227,355 3,625,581 4,150,557 4,708,540 5,288,422 5,541,095 5,806,988 6,086,838 6,381,422 33 Premium Pay - 1,309,504 1,717,274 1,779,095 1,843,143 1,909,496 1,938,138 1,967,211 1,996,719 2,026,669 2,057,070 2,087,926 2,119,244 2,151,033 2,183,299 2,216,048 2,249,289 2,283,028 34 - 2,515,504 (1,060,608) 3,652,010 4,040,647 4,538,449 4,977,357 5,261,043 5,746,512 6,164,529 6,606,812 7,176,507 7,779,880 8,405,832 8,705,265 9,018,621 9,346,646 9,690,127 35 36 37 Eligibility Requirements of Early Retirees Components of Retirement Plan - Effective July 1, 2013 (unless noted differently) 38 1. Twenty (20) years of service to MCC 1. Special/Incentive payment - discontinued 39 2. Rule of 80 - age plus years of service to MCC 2. Insurance benefit - discontinued 40 3. Elect benefit in first year of eligibility or lose it 3. Premium pay - Board elimination of ERT units. July 1, 2011 has 200 units or 7,936.5 hours. July 1, 2012 and after 0 units or 0 hours. 41 4. No bumping rightsH:AnalysisBRTBRT Financial plan budget deficit closing the gap 2010December17updated2011Apr7.xlsxOption3Printed: 4/7/2011 at 12:36 PM Page 5 of 5