The St. Joseph School District announced Monday that the Board of Education has voted to stop current and future payments for health care coverage for former Superintendent Dr. Dan Colgan, effective immediately.

The decision was made during an Executive Session Monday, Sept. 14.

The district said under Colgan’s superintendent contract for the 2004-05 school year, item #4 states: “The Board agrees to purchase the Superintendent a $25,000 taxable annuity for each year of this contract that is executed. In addition, medical insurance for life will be provided when the contract is completed. This medical insurance will be secondary after Medicare coverage becomes available. After completion of this contract, the Superintendent will provide consulting services to the new superintendent for six months at no charge to the District.”

Board member Lori Prussman made the motion to discontinue payments; Chris Danford seconded and was passed unanimously.

“When Dr. Colgan retired, it was permitted for the board to give him access to the district’s health plan because that was required under Missouri law. However, Dr. Colgan, like any other retired employee with access to the district health plan, should have been required to pay premiums for the coverage and not been reimbursed for it by the district,” said W. Joseph Hatley, Partner with Spencer Fane and attorney for the SJSD Board of Education.

“The Board of Education has taken the legal recommendation that they have the right to stop payments,” said Dr. Robert Newhart, Superintendent. “Based upon the information we now have, it is the right and ethical decision for the board to make. This reflects the changes in culture we are undergoing; it’s another step in the right direction.”

The district said the board has asked legal counsel whether or not previous payments can be recouped from Dr. Colgan.