Your Early Retirement Incentive (ERI) may not be the best cost-saving strategy in today’s climate of rising health care costs. In fact, OSBA recommends that districts conduct a cost-benefit analysis of ERI programs. A growing number of districts have bargained a sunset on these programs, reduced benefits, or immediately discontinued the program. One alternative is to substitute ERI packages with a district-funded Tax Sheltered Annuity (TSA).
Unions are targeting “ending fund balances” as a source to fund their salary and benefit proposals. This has become a popular issue at the legislature, in budget meetings and at bargaining tables. So, what is ending fund balance and why do we need it?