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Peralta News – Peralta Colleges to Hold Employee Forum on Kaiser Rate Increase

26 January 2012. 0 comments

On January 12, 2012, the Peralta Community College District received formal notification from Kaiser of its intent to increase the District’s renewal rate by 18% effective July 1, 2012.

As you are all well aware, for several years, the District like other community college districts across the state of California, have faced budget challenges as a result of the state budget crisis. During the 2010-2011 and 2011-2012 fiscal years, PFT, SEIU Local 1021, IUOE Local 39, Confidential employees and Managers all contributed to fiscal concessions which included, but were not limited to, furlough days to address the fiscal crisis which included rising health care costs.

For many months now, the District and its employee unions have been engaged in good faith negotiations, primarily, but not limited to a long-term fiscally sustainable health plan for employees and their eligible dependents and other issues as well. The District and its employee unions believed we were close to reaching an agreement for health benefits.

It was further understood by all parties that although the District did not experience an increase in its renewal rate for 2011-2012, a zero increase was an aberration. Based on the last 5-year trend analysis, we projected a single-digit rate increase to our Kaiser premiums in the range of 6-9%. Needless to say, an 18% increase for the 2012-2013 fiscal year, was an unforeseen circumstance and if implemented, would mean an increase in $1.170 million for employees and $973,300 for retirees, which is a total additional cost to the District of $2.143 million for Kaiser alone.

Clearly, an 18% renewal rate increase, if implemented, would have a devastating impact on the District.

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