By Abby Souza

Jun. 11, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- Emilia Torres spent two decades working in the Merced City School District before retiring a couple of years ago. And for the first time, this 57-year-old former personnel assistant has begun to regret her decision.

"I was misled when I was looking into retirement," she told the Merced City School District board at its meeting Tuesday night. "For the past two years, I've been paying insurance premiums equal to active employees."

But, Torres explained, that changed when she and the other 160 district-paid retirees were informed they'd be paying around $200 a month more in health insurance costs.

District officials informed its retirees last week that health insurance costs for retirees would be going up now that SISC -- Self-Insured Schools of California -- is the district's insurance provider.

The increase didn't sit well with retirees or the employee unions that represent them, as groups of both turned up at the meeting Tuesday night to protest the change.

"We were all kind of in shock a week ago," said Rich Gibson, an MCSD teacher who retired this year. "Our health insurance had shot up almost three-fold."

And while Associate Superintendent of Personnel Services Robert Frausto said the cost has more likely doubled than tripled, it is true that SISC requires retirees to have higher insurance premiums than active employees.

Retirees simply cost more to cover than employees still within the district, Frausto said, which is why SISC charges them a different rate. In the past, retirees and current employees paid the same amount for coverage.

Now, with SISC at the helm, certificated retirees -- such as teachers and counselors -- will go from paying $155.28 a month for health insurance to $369.28. Classified employees, such as bus drivers and custodians, will pay $324.61 a month instead of $110.61.

Current district employees' rates will stay the same.

"I'm very upset," said Mike Casias, the district's classified employee union president. He added that both current and former employees of the district should equally share the burden of the increased costs of insurance. "We need to fix this."

Frausto said he submitted blended rates to the employees' unions, which spreads the increased cost over both current and retired employees. This increases current employees' insurance costs by $27, he said, and lowers the retirees' prices. "They want us to pick up that difference," Frausto said of the unions. That decision, however, will have to be made during negotiations.

Frausto said his team would be mediating with the classified union representatives this morning.

In the meantime, Gibson said he objects to the idea that retirees cost insurance companies more money. Since being retired, he said he feels like he's in the best shape of his life. "I'm certainly a lot less stressed," he said.

Reporter Abby Souza can be reached at (209) 385-2407 or asouza@mercedsun-star.com.

Newstex ID: KRTB-0264-25918282