The board devoted an extended portion of the Jan. 7 workshop to proposed revisions to Policy 6560 (retiree health insurance) and related items after staff presented cost and enrollment data.

Don Calderon and benefits staff provided data showing the district currently covers roughly $1,000,000 annually for a health insurance subsidy for retirees under 65 and projects a roughly $2.1 million liability over a 15‑year span tied to a separate retiree stipend program for about 117 current retirees. Pam Kimberlin (benefits coordinator) and other staff reported the district tracks retirees in its BenTec enrollment system and provided counts of retirees in various categories.

Board members and staff discussed three distinct buckets the workshop materials used to organize retiree benefits:

- Existing retirees currently on the district group plan (roughly 117 people) who receive a district stipend tied to years of service; staff presented a 15‑year liability projection for that group.
- The Martin County health insurance subsidy for retired employees age 65+ that the state augmented when the governor signed a change effective July 1, 2023 (presenters referenced the state increase to the retiree subsidy). The board discussed reducing the district’s contribution from $5 per year of service to $2.50 per year of service effective July 1, 2025, and setting a 10‑year window on that reduced rate.
- Employees retired but under age 65 (including employees in DROP or the FRS investment plan) and future retirees. The board discussed limiting future enrollments into the over‑65 subsidy and setting date‑certain expirations for new enrollees.

Board members repeatedly emphasized fairness to current retirees who planned around earlier expectations; several trustees preferred preserving benefits for existing retirees while reducing future district exposure. Specific directions discussed and relayed to staff included: preserve current benefits for the 117 retirees already on district insurance through their projected timelines, reduce the over‑65 health subsidy from $5 to $2.50 per year of service beginning July 1, 2025, and set a date‑certain end for new under‑65 retiree subsidies (board discussion favored a sunset in mid‑2030 for new enrollments, with variations suggested for 2030–2035). Trustees also discussed offering a finite transition window (board members considered a 3–5 year window for new retirees to phase in) rather than an immediate elimination.

Staff will consolidate the board’s direction, prepare clear, bucketed proposals and cost estimates, and return them for formal consideration. The board did not adopt a final policy at the workshop and asked staff to bring a redline and clean draft for the February workshop and subsequent board agenda.