Wellesley Public Schools: Fiscal Year 2026 Budget
Account 12 (HSA) for any benefit eligible employee who enrolls in a High Deductible Health Plan (HDHP) during the FY’24 Open Enrollment period. The Town contributes $1,000 into an HSA for each benefit eligible Town employee selecting an individual HDHP and $2,000 into an HSA for each benefit eligible Town employee selecting a family HDHP. In developing the FY’26 budget, the Town has requested all Town Departments budget an amount to cover the Town’s initial costs of employee health benefits for all benefit eligible positions. For the School Department, the budgeted amounts are $20,000 for each benefit eligible staff member and $7,500 for each benefit eligible instructional support professional staff member. The Town’s Department of Human Resources is responsible for budgeting for all health benefits in subsequent years. • As described in the Town’s Comprehensive Annual Financial Report (CAFR) for year ending June 30, 2023, the Town maintains a single employer defined benefit healthcare plan (“The Other Postemployment Benefit Plan”). The plan provides lifetime healthcare and life insurance for eligible retirees and their spouses. Chapter 32B of the Massachusetts General Law (MGL) assigns authority to establish and amend benefit provisions of the plan. The plan provides the benefits by participating in the West Suburban Health Group. Benefit provisions are negotiated between the Town and the unions representing Town employees and are renegotiated each bargaining period. The plan also pays 50% of the retiree life insurance premiums. The Town adopted MGL, Chapter 32B, Section 18 in April 2006, requiring all Medicare-eligible retirees to enroll in a Medicare supplement plan. The effects of this adoption have been included in the determination of Other Post employee Benefits (OPEB) liabilities by the Town’s actuary. As of June 30, 2023, the Town has recognized a net other postemployment benefits (OPEB) liability in the amount of $34.7 million (59.51% attributable to the school department) in accordance with the provisions of GASB Statement No.75. During 2023, the Town transferred $3.6 million of pre-funding contributions to the OPEB Trust Fund. The assets set aside in trust for future benefits amounted to $110.4 million at year end. As of June 30, 2023, the ratio of the Plan’s Fiduciary Net Position to the Total OPEB Liability (funded ratio) is 76.08% (determined under GASB Statement No. 74). (Town of Wellesley Budget). • As described in the Town’s Comprehensive Annual Financial Report (CAFR) for year ending June 30, 2023, the Town is a member of the Wellesley Contributory Retirement System (WCRS), a cost-sharing multiple employer defined benefit pension plan covering eligible employees of its 2 member units (the Town and the Wellesley Housing Authority). The system is administered by five board members (Board) on behalf of all current employees and retirees except for current teachers and retired teachers. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan. The system is a component unit and is reported as a pension trust fund in the fiduciary fund financial statements. The Town is a member of the Massachusetts Teachers’ Retirement System (MTRS), a cost- sharing multiemployer defined benefit plan. MTRS is managed by the Commonwealth of Massachusetts (Commonwealth) on behalf of municipal teachers and municipal teacher retirees. The Commonwealth is a non-employer contributor and is responsible for 100% of the contributions and future benefit requirements of the MTRS. The MTRS covers certified teachers and administrators.
12 A Health Savings Account (HSA) is a tax-advantaged medical savings account that individuals who enroll in a high-deductible health plan (HDHP) are eligible for. The funds contributed to an HSA are not subject to federal income tax at the time of deposit and HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the employee and are portable.
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