Administrative Bulletin No. 2000-7

To:  Chief School Administrators                        Date:  August 2000
       College and University Presidents
       School Contacts

 We have recently received questions regarding certain health insurance payments being reported as regular compensation. In order for monies of this nature to be deemed regular compensation, the districts can have no responsibility for providing health insurance to any of their employees and the monies must be:

• collectively bargained for all members of a negotiating unit and
• taxable salary for reporting purposes.

        Generally, payments in lieu of health insurance coverage are made in a lump sum (or stipend) and are therefore, considered non-regular compensation (not reportable for Tier 2, 3 and 4 members).

         Any additional payments issued to a member to purchase health insurance through the district are not reportable to this System.

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