Kenosha district seeks board OK to send retiree health options to actuaries before possible July 1 changes

District staff presented two benefit scenarios and asked the Kenosha School District Board to authorize sending materials to the actuarial firm Milliman so the firm can cost them out ahead of any potential policy changes.

The presentation, delivered by a district benefits presenter, described current eligibility rules — common minimum ages of 55 and 57, a continuous 15-year service requirement, and varied retiree contribution rates by employee group — and called out that the district currently has about 265 retirees on the health plan (25 ASTs, 182 teachers, 27 ESPs, 10 clerical, 1 carpenters/painters and 20 in the service group). The presenter said, “we in total, we're paying $4,200,000 a year on the retiree health coverage. The district is paying $3,600,000 of it, and retirees pay $617,000,” and asked the board to authorize costing so the district can evaluate trade-offs.

Staff described two scenarios for Milliman to analyze. In “Version 1,” the presenter said the district would set a uniform minimum retirement age of 55 for all groups, keep 15 continuous years of service, require a 12% retiree premium contribution across groups, and default coverage to single with an option to buy up to family coverage. In “Version 2,” staff proposed applying the current teacher model to all groups: eligibility at 55 with district-paid single coverage, a 12% retiree contribution, and the ability to select broader coverage if an employee waits until age 62. The presenter also recommended adding dental coverage options to the scope of the actuarial study so dental mirrors whichever medical scenario is selected; staff noted dental costs are much smaller in scale (example cited: a family dental package of about $1,800).

Staff emphasized that the Jan. 27 request is not a vote to change benefits but a request to proceed with costing. As the presenter put it, the board would be asked on Jan. 27 “not to approve any changes to the benefits or the package, simply to say, this is what we want you to move forward and have costed out.” The presenter said materials must reach Milliman by the end of the month to meet a February–May study timeline that could allow changes to take effect July 1, 2026.

A key implementation proposal is grandfathering. Staff recommended grandfathering existing employees and applying any new rules to hires on or after July 1, 2026, but noted that grandfathering does not freeze future contribution-rate decisions. Board members asked for clarification about which employee groups would be grandfathered and whether some employees could be advantaged or disadvantaged by particular scenarios; staff repeatedly answered that impacts depend on the version chosen and on specific grandfathering definitions.

The board did not take a formal vote on benefit policy during the special meeting; staff asked for board feedback and urged members to send questions ahead of Jan. 27 so the items can be included in the packet for that meeting. The district will return with Milliman’s cost estimates before any formal adoption.

The next procedural step is the Jan. 27 board meeting where the board may vote to authorize the cost study or provide additional direction; staff said the actuarial work will run from roughly February through May if the board authorizes it on Jan. 27.