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Tue., Oct. 6
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Norwood-Norfolk to see savings under new administrator contract


NORFOLK - Norwood-Norfolk Central School administrators will shift to a health plan that is expected to be less costly and their longevity increases will end and under the terms of a new three-year contract approved last week by the district’s board of education.

Superintendent James M. Cruikshank said they will see immediate savings at the start of the new fiscal year, which begins July 1.

“We’re going to see immediate savings from this accord, but the real benefit is longer term. As soon as the year rolls over, which is July 1, there is immediate savings. That comes through the shift in insurances,” Superintendent James M. Cruikshank said.

He said the current contract expires on June 30, and the new pact runs through June 30, 2017.

“I met a few times with the administration, and we came to an accord that was very beneficial,” Mr. Cruikshank said.

Under the terms of the new contract, administrators will shift from their current insurance plan to the new Rider 9, which includes higher co-pays for both prescription and medical expenses. Administrators will continue to contribute 10 percent to the premium cost of the plan.

That will allow the district to avoid a proposed “Cadillac tax” on benefit plans, according to Mr. Cruikshank.

A Cadillac plan is any unusually expensive health insurance plan. The Patient Protection and Affordable Care Act imposes an annual 40 percent excise tax on plans with premiums exceeding $10,200 for individuals or $27,500 for a family (not including vision and dental benefits) starting in 2018.

“The real benefit is to avoid the coming Cadillac tax that’s going to be imposed on those high-cost plans,” he said.

The new contract also calls for an end to longevity increases.

“They got a longevity step every four years to their base salary, and we negotiated that out,” Mr. Cruikshank said. Administrators will see annual 3 percent salary increases, but the district will still see savings with the switch in health care plans and the elimination of the longevity increases, he said.

“Even with the agreed upon increase in administrative salaries of 3 percent, there is an immediate savings to the district. In addition to this immediate savings to the district, the true value will be found in the future as the longevity increases terminate,” the superintendent said.

“We’re very thankful the administrative team saw the financial straits that the district has been in due to the inequities in school funding. This was a great way for them to give back to the district in the way of future savings,” Mr. Cruikshank said.

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