Berne-Knox-Westerlo BOE and Teachers Vote in Favor of Contract

April 25, 2014 - PRLog -- The Berne-Knox-Westerlo (BKW) School Board and Teachers Association this week both voted in favor of a contract agreement that benefits three groups – taxpayers, teachers and students.

The contract calls for raises above salary schedule yearly increments for teachers that amount to zero percent, 1 percent, 1 percent, 1 percent, 1.25 percent, 1.25 percent for years 2013-14, 2014-15, 2015-16, 2016-17, 2017-18, 2018-19. (The yearly increment is an average of 2.2 percent for those teachers who are eligible and continues whether or not there is any contract settlement.)

The agreement also calls for health insurance savings for the School District with Teacher Association members moving to the Empire PPO base plan or having to pay the additional costs incurred by any of the more expensive plans.

In addition to saving money by making the school district responsible for only the base plan, teachers will also contribute more to their portion of the plan in terms of premium contribution:

• For individuals: 5 percent the first year and 13 percent by the end of five years. For future retirees: 0 percent the first year and 6.5 percent by the end of five years.

• For family and two-party plans: 10 percent the first year and 17 percent by the end of five years. For future retirees: 11.6 percent the first year and 14 percent by the end of five years.

This agreement also calls for increasing drug co-pays which will also produce additional health insurance savings for the School District.

Previously, teachers paid $5 for a monthly drug co-pay (any kind of drug) and $0 for a 90-day mail order drug co-pay, leaving no incentive to use generic drugs.

With the new contract teachers will pay $5 for generic co-pays and $20 for preferred formulary co-pays and $35 for non-preferred formulary co-pays. A 90-day mail order drug co-pay will cost teachers two co-pays ($5, $20, $35, depending on whether they’re using generic, preferred formulary or non-preferred formulary).

The agreement also calls for a one-time, lump-sum off-salary schedule payment of $2,100 to each of the 85 teachers represented by the Teachers Association ($180,000 total) to be paid out the time the contract is signed.

“This one-time payment is an incentive to settle a contract that creates long term savings for taxpayers largely because teachers will be required to cover the cost of any of the more expensive insurance plan options,” said Lonnie Palmer, BKW Interim Schools Superintendent. “The one-time payment is more than reasonable considering the new salary schedule only adds up to a 5.5 percent in total increase above what the teachers were legally entitled to receive in increment. Meanwhile, inflation has risen 9 percent since 2009 and will only go higher between now and 2019.”

The agreement addresses long term structural problems for the district by containing health insurance costs and offsetting those district gains with salary increases that bring BKW teachers more closely in line with salary agreements of other Capital Region teachers.

The raises going forward average $579 per teacher per year above what teachers would have received without a contract agreement. On the other hand, the savings from a new more cost effective approach to health insurance coverage (assuming 4 percent health insurance annual inflation) is projected to be $592 per teacher per year.

“This agreement brings our teachers much closer to the average pay and health insurance cost for teachers in our immediate area and establishes a positive labor climate for the next five years.  This allows us to focus on academic improvement for our students,” Palmer said.

This new agreement goes from 2009-2019, resolving a contract that expired in 2009.

The BKW school board voted in favor of the contract at its meeting on Monday, April 21, 2013. The BKW Teachers Association membership voted in favor of the contract on Thursday, April 24 2014, following an informational meeting.

Note: The projected savings does not include savings from the previously mentioned higher future retiree health insurance contributions, the future retiree shift to a base health plan (Future retirees will also have to pay the extra cost of a premium plan.) or from a new health insurance buy-out provision in the proposed agreement. For the first time, teachers with other health insurance options will receive a one-time payment of $3,000 if they opt out of health insurance through BKW.