Song Title: Call Me Irresponsible

Arrangement by Board of Trustees

Lyrics by: District's Benefit Consultant

The district's benefit consultant projects a $90.3 million liability for retiree benefits. If one's heart skips a beat, realize that this amount represents the present value of all benefits expected to be paid by the District for retirees beginning at age 65 and continuing for their remaining lifetime, including retirees who have not yet attained age 65, and active employees who have not yet retired.

Two problems with this figure:

a) the assumptions used to reach it - no one seems to know what they are;

b) The District's failure to fund this liability. Some years ago, ACE negotiated a portion of COLA to be set aside specifically for this unfunded liability (COLA dollars that could have gone to salaries - but once again, faculty tried to help). Instead, the District took that portion of the COLA money for retiree benefits and spent it elsewhere.