When John Caldecott protested his termination without a hearing last January, I warned the school board that their usual M.O. – hunkering down and riding out the storm – was not a good strategy this time around. Not with Caldecott.
Today, we learn that when Jeffrey Hubbard was N-MUSD superintendent, the school board approved a “life insurance annuity” which was subsequently converted to a merit pay raise.
CalSTRS denied this action, telling Hubbard in a letter dated July 5, 2012, that “this remuneration was paid for the principal purpose of enhancing your (retirement) benefit.” (Reader note: Parentheses are mine)
But wait there’s more…
The board had a legal obligation to report the life insurance perk on the meeting agenda for July 8, 2008, but they did not.
I’m still going through documents, but here is the initial report in a nutshell: Apparently, the school board and Hubbard attempt a pay raise work around by converting life insurance annuity payments to a salary increase, which would have added income to Hubbard’s pension upon his retirement. The purchase of the policy was not reported on a meeting agenda as required.
So, what does this have to do with John Caldecott? He’s the one who raised his hand and questioned this. When he did that, he was fired without a hearing.
And here’s the odd part: The language in Hubbard’s contract announces the purchase of a life insurance annuity. The best sources I checked reported that there is no such product. There are annuities and there is life insurance, but there is no such thing as a “life insurance annuity.”