The NORTH ADAMS TEACHERS ASSOCIATION
LOOKING AT THE PREMIUM RATES:
Between Fiscal Years 2005-2009, the City only paid 62% of premium rates for health insurance.
Because the City only paid 62%, our health insurance trust fund was under-funded by $2 million.
As a result of the trust being underfunded by $2 million, the Trust never had a surplus to off-set expenses for the following year or keep employee rates down.
LOOKING AT THE ACTUAL COSTS:
The employee/retiree contribution of 30% of the premium rates ended up equaling 33% of the actual costs.
The city's contribution ended up equaling 67% of the actual costs.
Either way you look at it, the city did not pay its fair share.