2018/19 ANNUAL REPORT
2018/19 Annual Report
TABLE OF CONTENTS EMPLOYEE BENEFITS
RISK MANAGEMENT
CSEBA Board of Directors President Message . . . . . .4
CSRM Board of Directors President Message . . . . . 12
2018/2019 Highlights . . . . . . . . . . . . . . . . . . . . 5
2018/2019 Highlights . . . . . . . . . . . . . . . . . . . 13
CSEBA Member List . . . . . . . . . . . . . . . . . . . . . 8
CSRM Member List . . . . . . . . . . . . . . . . . . . . . 16
CSEBA Financials . . . . . . . . . . . . . . . . . . . . . .10
CSRM Financials . . . . . . . . . . . . . . . . . . . . . . 17
A Word From Our CEO . . . . . . . . . . . . . . . . . . . 18
EMPLOYEE BENEFITS
RISK MANAGEMENT
CSEBA MISSION STATEMENT
CSRM MISSION STATEMENT
To be the premier provider of quality, cost effective employee benefits programs, services, and resources tailored to the needs of our members.
To promote student achievement by optimizing financial and human resources of member districts through high quality risk financing and loss reduction services.
1950 South Sunwest Lane, Suite 100 909-763-4900 csjpa.org San Bernardino, CA 92408
A WORD FROM OUR BOARD PRESIDENT Dear members, partners and friends, Thank you for being such a valuable part of CSEBA. Your thoughts about the complicated issues that matter most to you and your families, employees and your schools are what truly drive the decision-making process of CSEBA’s members-only Board of Directors. Because we listen and learn from our teachers, classified staff, union leaders, administrators, and management staff, CSEBA is able to be highly responsive to the changing employee benefits needs. In recent decades, our school employees have seen improvements in medical knowledge and standards of care which are allowing people to live healthier, longer, and more productive lives. This was true throughout the past decade alongside unprecedented cost control challenges in health care benefits, and I am proud that the many accomplishments of 2018/2019 continue to bring even more options for our members: • The Delta SmileWay program allows members with certain medical conditions to receive enhanced dental benefits. • The EPIC hearing benefit which provides a comprehensive hearing aid benefit including discounts on hearing aids for every member was fully implemented in 2018/2019. • An option was created for member districts to offer individual vision plans to their employees and family members who are not currently eligible for the employer-sponsored vision plan. • American Fidelity reimbursement program was designed for districts to use funds for projects and activities related to employee benefits. You can read more about these important efforts in the following pages. As we move forward into the next decade, my pledge to you is that the Board of Directors will leave no stone unturned and no questions unasked as we make choices and changes that are for the good of the members at large. I am proud to be working with you and for you.
— Russell Levine CSEBA Board of Directors President 4
2018/19 HIGHLIGHTS CSEBA is the only pool that offers enhanced dental benefits. Implemented in 2018, the SmileWay program provided through Delta Dental allows members with certain medical conditions to have enhanced dental benefits. Members who have been diagnosed with diabetes, heart disease, HIV/AIDS, rheumatoid arthritis, or stroke can register to receive four cleanings a year and one periodontal scaling and root planting procedure per quadrant per calendar year.
Hearing benefit for every member in 2018/2019. EPIC Hearing provides annual routine hearing tests and coverage for VISTA and other major brand hearing aids at preferred pricing. Members benefit from having hearing aid coverage at approximately half the cost.
Individual vision plans to employees and their family members.
2018/19 ANNUAL REPORT
CSEBA has been very helpful—especially in getting information out to members. We have held monthly insurance committee meetings and our CSEBA rep was there at every meeting. They were there to explain plans as often as we needed them explained; and we did a lot of seminars and a lot of price comparison. When we were thinking of changing our options, our CSEBA rep came to our district and explained all the options to us and helped us weigh them—and this was even before we chose a plan. I mean, the access and willingness of the account managers to meet with us has always been extraordinary with CSEBA. I don’t think I’ve ever waited more than 24 hours on a reply for anything. — Rebekah Mortenson Young, Hamilton High School English Teacher, Hemet Unified School District
Substitute teachers, part-time employees, adjunct faculty, early retirees, and other non-benefit eligible employees can purchase a VSP plan for themselves and their families, with no administration and no cost to the district or pool.
Wellness engagement reaches an all-time high. The Go365™ wellness program is a robust incentive-based program that includes: online resources for weight management, personalized exercise programs to meet target areas, health risk assessments, online resources for topics like tobacco cessation, and healthy living nutritional and educational support. Employees can earn rewards for healthy behaviors like attending a workout class, getting a biometric screening, having a dental exam, running/step counting, or even setting sleep goals. To help members get started, Go365 partners attended over 60 onsite and on-campus events; created customized program agendas with monthly activities, challenges, and promotional material; created fun incentives to encourage participation during onsite events, activities, and health fairs; and developed individual relationships with many districts. 2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
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EMPLOYEE BENEFITS
Designed option for districts to create potential funds for projects and activities related to employee benefits. American Fidelity and CSEBA formed a partnership that allows participating districts to benefit from portions of their voluntary products. Districts in CSEBA may use those funds for any employee benefits-related projects or activities. Some examples that districts can use these funds for are found below: • to offset rates or premiums • to pay for benefit reporting and tracking services • to pay for additional benefits such as enhanced dental or vision • to purchase fitness trackers or wellness equipment for their employees • to pay for their employees to attend conferences such as CPHCC, PARMA, ACBO, CASBO, CAJPA, etc.
Employees need to have choice. There are many medical providers in the area, and they need to have what works for them and their families. I worked with Benefitfocus— our online enrollment platform—it really helped my district because we were able to get core employee information in one place. Employees can go online to find out about their current insurance coverages and make changes; it is a really robust service that we are able to provide to our employees. — Jessica Hurst, former Director of Fiscal Services, Colton Joint Unified School District
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The CSEBA team immediately makes you feel like you’re part of the family, and makes you feel like there is no question that is a stupid question. I feel comfortable. I had a personal issue that kept me out of the office for quite a while and my CSEBA account manager was able to jump right in and help the people that were taking over the little pieces of my job that I wasn’t able to do remotely. I am just so appreciative, feeling that family atmosphere. Yes, they are professional and yes, they have their roles and ways they have to do things. But when push came to shove and I really needed somebody, my CSEBA account manager was definitely there. The entire team has always been there for me. — Connie Fierro, Health Benefits Department, Ramona Unified
Online Enrollment and Benefits Administration was fully implemented. All member school districts had their first open enrollment period while utilizing the Benefitfocus platform. Some districts also offered the CSEBA store voluntary benefits: critical illness; pet insurance; identity theft protection; loan assistance through payroll deduction; college savings plans for employees to set up for their families; financial wellness program; and legal insurance.
2018/19 ANNUAL REPORT
CSEBA’s exceptional customer service, knowledge, and expertise are what make them unique. I’ve had the opportunity to talk to other trusts and JPA organizations, because my husband has insurance offered through his work. Each year I look at his options to see which employer offers the better plan. And, each year I call those places and ask questions, and I don’t get the same level of friendliness or customer service, and I certainly have not gotten the same level of expertise or knowledge. That experience really helped me understand that what I have had and experienced with CSEBA has been exceptional and is above and beyond what I would get elsewhere. When I was pregnant with my daughter a few years ago, I needed a medication that was unusual. My unborn daughter had a thyroid goiter, so it was critical that the doctors inject a hypothyroid medication into my amniotic fluid. The dosage of the medication and the manner in which it was being prescribed was unusual. I found out from the doctor on a Friday that I needed the medication to be injected on Monday. My husband and I were having trouble getting the medication approved at the pharmacy because of the way it was going to be administered. It was going to cost me some $500-odd out of pocket for each of the many injections I was going to need. I called CSEBA and our rep worked all weekend to find a solution. By Monday, they had me submit the bill to them for that day’s injection, and had it worked out so that in the future I didn’t have any other trouble. That is not something that I would get any place else. My daughter is 2-1/2 years old now and her thyroid is fine. Everything turned out great. The customer service, care, and concern I received during that stressful time is just one example in which CSEBA proved how much their members mean to them. — Debbie Girgenti, Title 1 Behavioral Support Teacher, Twila Reid Elementary, Savanna School District 2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
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EMPLOYEE BENEFITS
CSEBA Member List Adelanto Elementary School District * Alta Loma School District * Apple Valley Unified School District Baker Valley Unified School District * Baldy View Regional Occupational Program * Bassett Unified School District Bear Valley Unified School District Beaumont Unified School District Brea-Olinda Unified School District Central School District * Centralia School District Chaffey Community College District * CharterSAFE Chino Valley Unified School District * College & Career Advantage Colton Joint Unified School District Copper Mountain Community College District * Covina-Valley Unified School District Cucamonga School District * East San Gabriel Valley Regional Occupational Program * East Whittier City School District Encinitas Union School District Etiwanda School District * Excelsior Charter School Hemet Unified School District 8
Hesperia Unified School District * Laguna Beach Unified School District Morongo Unified School District * Mt. Baldy Joint School District * Mountain View School District * North Orange County Regional Occupational Program Ontario-Montclair School District Ramona Unified School District Rialto Unified School District Rim of the World Unified School District * Riverside Unified School District San Bernardino City Unified School District * San Bernardino Community College District San Bernardino County Superintendent of Schools * San Marino Unified School District Santee School District Savanna School District Silver Valley Unified School District South Pasadena Unified School District Summit Leadership Academy Victor Elementary School District * Victor Valley Community College District Westminster School District Yucaipa-Calimesa Joint Unified School District * * Denotes also a CSRM member 2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
2018/19 ANNUAL REPORT
2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
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EMPLOYEE BENEFITS
CSEBA Financials Between 1997 and 2019, CSEBA has returned a total of $27 million in contribution to members.
TOTAL OPERATING EXPENSES Claims expenses Insurance premiums Claims administrators and broker fees Administration fees Computer/tech services General administration Total expenses
PROGRAM Dental Vision Life Blue Cross Blue Shield Kaiser Permanente TOTALS
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CONTRIBUTIONS AND REVENUES $30,702,642 $3,550,095 $1,403,237 $115,133,290 $114,738,010 $265,527,274
$123,507,975 $105,752,454 $13,469,310 $1,445,344 $1,099,194 $84,275 $245,358,552
OPERATING EXPENSES $26,924,422 $3,416,122 $1,066,520 $11,346,500 $103,560,847 $112,223,762 $258,538,173
TOTAL ASSETS BY PROGRAM AT 6/30/2019 $22,672,478 $2,291,245 $1,783,855 $2,200,048 $27,161,181 $9,674,840 $65,783,647
2018/19 ANNUAL REPORT
ADVOCACY AND EAP INTERACTIONS TO SUPPORT CSEBA MEMBERS 476 439 392 349
380
406
422
2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
JUNE 2019
APRIL 2019
MARCH 2019
FEBRUARY 2019
339
JANUARY 2019
DECEMBER 2018
365
OCTOBER 2018
SEPTEMBER 2018
AUGUST 2018
JULY 2018
374
MAY 2019
453
NOVEMBER 2018
442
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A WORD FROM OUR BOARD PRESIDENT Dear members, Colleagues, and Partners, In 2018/19, CSRM saw lower losses and industry low renewal rates. That’s a testament to the commitment and dedication from our Board of Directors, Executive and sub-committees, partners, and CSRM team. Our CSRM members have weathered a lot of challenges in the past decade and we have had to adjust our processes, make hard decisions, and develop innovative solutions to never-before-encountered issues. We have asked more of our staff and members than ever before, but the result of all that effort is undeniable. I am extremely proud of what we were able to achieve together in 2018/19. Some of those achievements are below: • Worked with our partners to create an option to help meet required sexual abuse insurance limits for contract workers on school campuses. • Collaborated and remain actively engaged with pools statewide on a Sexual Abuse and Molestation (SAM) Best Practices Coalition. • Following the success of the first suicide awareness forum with one of our districts in 2018, additional events were held to further engage the community. • Provided access to NASDTEC for greater student and staff safety. There is more information about these achievements in the pages that follow. The new decade will come with a new set of challenges, but I know that the CSRM Board of Directors and entire CSRM team will meet them with grace and forward-thinking intention. Thank you for your trust and allowing me to serve as your CSRM President.
— Deanna Dibble CSRM Board of Directors President
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2018/19 HIGHLIGHTS They [CSRM] constantly step up to provide training when we ask. They make recommendations to help minimize claims, exposures, and liabilities. They provide training to our maintenance and operations staff, and our nutritional staff. They visit schools to determine if there are any risks that create any additional exposures for us. They have provided classes where I have been able to send two of my staff members to get certified in ergonomic training and to also obtain their risk management training certifications. They helped me build a succession plan going deep into the future. They are always available when called to provide assistance when I have a question or concern. It may be 5 o’clock at night or 5 in the morning. It helps me do my job better and gives me an opportunity to bounce my thoughts and ideas off others that are knowledgeable about school districts. I understand claims, I understand liability, I understand exposures, but school districts are a little different than what I used to handle. The [CSRM] risk managers give me that added impetus to understand school districts, school boards, cabinets and how to really circumvent and navigate through the public sector. — Jeff D. Haynes, ARM, Risk Manager, San Bernardino City Unified School District
2018/19 ANNUAL REPORT
Option created to help meet required sexual abuse insurance limits for contract workers on school campuses. To ensure all member districts have the ability to meet legal insurance requirements for situations involving sexual abuse, CSRM worked with its partners to cost-effectively provide the required sexual abuse insurance limits for independent contractors operating on school sites. School districts of all sizes can now be confident they have the full coverage required by California law.
Expanded our risk management team. The addition of four team members allowed us to form a dedicated five person in-house claims management team, a dedicated training manager, and a five person safety and loss control team. This has helped CSRM better devote resources and understand the specific needs of each member district and develop protocols to prevent, reduce, and mitigate exposures specific to each member. Val Dixon, CSRM’s Safety and Loss Control Manager states, “We work extremely well together. We talk every day to work through problems and figure out ways to better help each member. If we are seeing a lot of the same types of claims from a single district, Daniel Rodriguez (CSRM’s Claims Services Manager) informs me so that my team and I can develop ways to prevent those injuries, losses, or claims.”
2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
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RISK MANAGEMENT
Sexual Abuse and Molestation (SAM) Best Practices Coalition launch. CSRM is collaborating with pools statewide on a sexual abuse and molestation (SAM) best practices coalition to help reduce the risk of sexual abuse and molestation occurring in schools. Working with other JPAs throughout the state of California, CSRM is among the pools financially contributing to create the first ever statewide database of SAM claims with the goals of identifying trends and advancing any legislative remedies to help ensure that children and schools are protected.
New strategic road map for improving loss control programs. Piloted by the loss control and claims team, the “Root Cause Analysis” meeting focuses on leadership, resource assessment, and reducing silos. This provides a road map to empower districts to improve loss control programs. Also, a strategic risk action plan is designed to impact and support the leadership of the member districts.
Working together with California Schools JPA has allowed us to manage, improve, and limit risk within our district. The teamwork is outstanding and we look forward to continuing our efforts with you. Thank you for working with us to make a difference! — Sharon Flores, Assistant Superintendent of Business Services, Morongo Unified School District
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Through the years we have teamed with CSRM for their guidance and expertise to help us navigate through some challenges that went beyond the typical insurance transactions. Their knowledge and support make me feel comfortable in knowing that when I go to them for assistance on a potential risk that they will help find a solution and assist in ensuring our district is covered. — Kerry Castillo, ARM-P, Coordinator of Risk Management, Rim of the World Unified School District
NASDTEC for greater student and staff safety. Members now have a powerful tool to keep students and staff safer through CSRM’s agreement with NASDTEC. This national collection point can be used to screen potentially dangerous people by providing more information about potential new hires—such as certificate and licensing issues that may not be in the Department of Justice database.
INSPIRING HOPE IN OUR COMMUNITIES C
2018/19 ANNUAL REPORT
oncerned parents, school staff, and community members struggling to find help for youth confronting serious issues found the support they needed through HOPE forums in the Yucaipa-Calimesa Joint Unified School District.
The HOPE forums—a collaborative effort between the Yucaipa-Calimesa JUSD, California Schools JPA, and other public agencies—succeeded in bringing people together to start conversations and give them the tools necessary to respond to student alcohol and drug use, depression and suicide, and academic stress and achievement. The free forums for parents and community members included speakers, nationally-recognized programs, powerful workshops, and local resources. This was the first time California Schools JPA has supported an event of this kind for a member district—outside of town halls, workshops and fundraisers—according to Jazmine Martinez, Training Manager at California Schools JPA, who worked with her colleague at the Yucaipa-Calimesa JUSD when the need for more education became apparent. “We get really creative with the services we provide to members. In addition to loss prevention and employee benefits, ultimately we want to make sure that the students and staff have a really great environment, so we do whatever we can to promote that,” she says. The HOPE forum topics for 2018/19 were selected by members of Yucaipa-Calimesa JUSD, who chose to highlight trending issues in their schools including: alcohol and substance abuse prevention and intervention training for parents; student steps for success; and healthy minds.
2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
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RISK MANAGEMENT
CSRM Member List Adelanto Elementary School District * Alta Loma School District * Baker Valley Unified School District * Baldy View Regional Occupational Program * Barstow Community College District Barstow Unified School District Bear Valley Unified School District * BestNet JPA CAHELP JPA Central School District * Chaffey Community College District * Chino Valley Unified School District *
Colton-Redlands-Yucaipa Regional Occupational Program Copper Mountain Community College District * Cucamonga School District * East San Gabriel Valley Regional Occupational Program * Etiwanda School District * Helendale School District Hesperia Unified School District * Lucerne Valley Unified School District Morongo Unified School District * Mt. Baldy Joint School District * Mountain View School District * Needles Unified School District Oro Grande School District Rim of the World Unified School District * Riverside Community College District San Bernardino City Unified School District * San Bernardino County Superintendent of Schools * Snowline Joint Unified School District * Southern Kern Unified School District Victor Elementary School District * Victor Union High School District Yucaipa-Calimesa Joint Unified School District *
* Denotes also a CSEBA member 2018/19 Fiscal Year (July 1, 2018 to June 30, 2019) 16
2018/19 ANNUAL REPORT
CSRM Financials CSRM calculates the net position of each policy year on the basis that it stands on its own. This means that at the close of each year, an evaluation of the net position of individual policies is conducted and any remaining funds. Over the past 15 years, approximately $29 million in contributions have been returned to the members participating in property/liability. And in any given year after accounting for outstanding liabilities in all programs, recommendations as to which programs eligible with funds to be returned to the members are at the Board of Directors discretion. As an example of this in 2018/19, CSRM returned $52,898 of contributions to the Property/Liability program.
Program Property/Liability Workers' Compensation SCSFC
Revenues, Contributions, and Transfers $15,131,620 $33,262,874 $590,506
TOTAL OPERATING EXPENSES Claims expenses Insurance premiums Claims administrator and broker fees Other administrative fees General administrative expenses Building operating expenses
Expenditures Change in Net Position $13,181,975 $1,949,645 $29,825,749 $3,351,353 $615,886 ($25,380)
$13,082,734 $24,999,798 $3,583,912 $2,746,469 $601,932 $621,718
2018/19 Fiscal Year (July 1, 2018 to June 30, 2019)
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A WORD FROM OUR CEO Dear members, partners and friends, Throughout the past 10 years, our schools have survived a depressed economy that tightened school budgets, natural disasters, terrorist attacks, and even cases of school shootings. All of these have challenged us and caused our students, parents, staff, and surrounding communities to feel unsafe at times. But through it all, pooling has worked and your membership with CSRM and CSEBA has provided the stability to aid in the perseverance of our schools. When our districts needed us, we were there. With that partnership, we have seen brilliant ways of how our schools have supported their communities despite the unique challenges faced. They have created community-centered events to teach awareness, supported students through emotional tragedies, inspired young minds, implemented better processes and procedures that keep everyone safe, and developed fitness and wellbeing programs to help their staff and students lead healthier lives. Every participating district whether it be a K–12, community college, ROP or even another JPA within CSRM and CSEBA, have a voting seat on the Board of Directors. Through our strategic initiatives and recommendations that stem from our two executive boards, we have developed solutions that address the present and are creating hope for tomorrow, despite the struggles of today. We have carefully handpicked our team so that we can better serve our growing membership, ensuring a balance of those with school and industry expertise. As I reflect on key areas in 2018/19, we have worked with partners to create a cost-effective insurance for vendors in order that they can meet the required sexual abuse insurance limits for independent contractors operating on school sites. We have retained one of the most comprehensive property coverages in the market today, enhanced our standard benefits offerings, increased the breadth of our voluntary benefits, and realigned tasks to have a dedicated training manager for risk management and employee benefit needs. We have successfully met our goal for improved governance, transparency, and communication with our two Executive Committees who are representatives from the full Board. In fact, CSEBA tested a process to provide evaluative input on the CEO performance—my performance—which has resulted in a better understanding of the
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Board’s needs. The success of this process means that CSRM will use it in 2019/20 and beyond. And, with dedication alongside our many partners, wellness program utilization and interactions with our Employee Assistance Program and Health Advocacy partners in CSEBA are at an all-time high. In addition to my duties overseeing CSRM and CSEBA as CEO, I chaired a sexual abuse and molestation (SAM) best practices coalition where pools statewide have come together to address the growing concern about keeping our students safe. In 2018/19 I became President of the California Association of Joint Powers Authorities (CAJPA), a statewide association for insurance risk-sharing pools that provides education, legislative advocacy, and active involvement in regulatory matters; one of which is leading a data collection of SAM claims to identify trends, mitigate costs, and lead to a legislative remedy to avoid further adverse impact to our public schools and colleges. As your California Schools JPA leader, I remain plugged in to what is important to our public schools evident by both my recognition as a Region 12 awardee and being selected by the State Association of California School Administrators (ACSA) as Classified Administrator of the Year. There will continue to be both good and difficult times ahead. Some years can be tough, but together as a pooling community we are strong enough and creative enough to overcome obstacles, address insurance needs, and work to mitigate challenges. Your California Schools JPA team is trained, poised and ready with new programs, products, and resources so that you can focus on educating our future leaders. Sincerely,
— Karla Rhay, Ed.D, CSRM/CSEBA Chief Executive Officer California Schools JPA