Princeton Public SchoolBargaining Unit Contracts

Special Meeting of the Board of Education

May 20, 2015

2015-16 2016-17 2017-18

Salary increase

2.5% 2.5% 2.5%

Longevity

$ 100/step No change No change

Cost-saving steps accepted by union

• eliminate high-cost plan• changes in deductibles for

most subscribed plan• Rx cost containment

provisions• High deductible HSA as

option (including 60% contribution to deductible by BOE)

Premium levels

Tier 4 ofCh. 78

Tier 4 of Ch. 78

Tier 4 of Ch. 78

Additional comp from shared savings

$73,188 (HC relief stipends)

$34,664 (HC relief stipends)

$36,948 (HC relief stipends)

Proposed New Agreement – PRESSA & PPS BOE

2015-16 2016-17 2017-18

Base salary increase

2.39% 2.38% 2.37%

Longevity

No change No change No change

Cost-saving steps accepted by union

• Changes in deductibles for most subscribed plan

• High deductible HSA as option(including 60% contribution to deductible by BOE)

Premium levels

Tier 4 ofCh. 78 Tier 4 of Ch. 78

Tier 4 of Ch. 78

Additional comp from shared savings

Option to sell back 2 unused vacation

days/year

Option to sell back 2 unused vacation

days/year

Option to sell back 2 unused vacation

days/year

Proposed New Agreement – PAA & PPS BOE

Comparison – PRESSA & PAA

PRESSASalary: 2.5%; 2.5%; 2.5%

Longevity: $100/step year 1; no change yrs 2& 3

Ch. 78: Tier 4 levels

Cost-savingsMeasures:

-Elim. of high-cost plan-Deductibles changes-Rx changes-HSA as option

Sharedsavings:

Healthcare relief stipends each year

PAASalary: 2.39%; 2.38%, 2.37%

Longevity: No change all 3 years

Ch. 78 Tier 4 levels

Cost-savings Measures:

-Deductibles changes-HSA as option

Shared Savings:

Optional “sell-back” of 2 unused vacation days/yr

Comparison: PRESSA Agreement & BOE’s May 4 offer to PREAPRESSA Agreement

Salary increase: 2.5%/year

Longevity: $100/step year 1; flat years 2 & 3

PremiumContributions:

Tier 4 levels

Cost-savingsMeasures:

-Elimin. high-cost plan-Deductibles changes-Rx changes-HSA as option

Additional compensation from shared HC savings:• Year 1 – $73K• Year 2 - $35K• Year 2 - $37K

HC relief stipends annually to members who subscribe

Total effective compensation (salary + add’l compensation):

3.73% Year 13.08% Year 23.11% Year 3

BOE May 4 Offer to PREASalary increase: 2.44% year 1

2.20% year 22.30% year 3

Longevity: To be negotiated

Premium contributions:

Tier 4 levels

Cost-savings measures:

-Deductibles changes-Rx changes-HSA as option

Additional compensation from shared HC savings:• Year 2 - $200K• Year 3 - $150K

HC relief stipends annually to members who subscribe*

Total effective offer (salary + add’l compensation):

2.44% year 1 2.87% year 22.79% year 3

Notes on BOE’s May 4 offer to PREA:

• Salary increase offer of 2.44% is retroactive to July 1, 2014; sufficient to fully fund the cost of increment on the current

salary guide

• Salary increase of 2.3% in year 3 is more than the cost of increment on the current salary guide

• Effective total compensation offer is higher than statewide average settlements

• Similar to PAA & PRESSA agreements, board’s offer of additional compensation is contingent on shared savings from HC

cost-containment measures and on maintaining Tier 4 health care contribution levels

• Since July 2014, over 107 local teachers’ unions in New Jersey have settled with their school boards with no changes to

their Chapter 78 premium contribution levels

• If association accepted shared savings in form of healthcare relief stipends (as PRESSA did), that amount is non-

pensionable, non-cumulative and only paid to employees who take healthcare benefits

• If association accepts shared savings in form of additional salary, that amount would be pensionable, cumulative and

distributed to all employees on negotiated salary guide

• Board’s salary offer in years 2 & 3 proposed distribution of at least $175,000 of total dollars in each year to employees

hired before 9/2011 currently on steps 3 through 8 to address inequities in current guide

• Board made clear offer was not “final” but subject to further negotiation; board requested counter-offer and/or another

working session; PREA negotiating team chose to go to factfinding

• Board continues to be open to further conversation