Sycamore board approves MOU with teachers’ union to drop low-deductible plan; district projects $860,000 annual savings

The Sycamore School District 427 Board of Education approved a memorandum of understanding with the Sycamore Education Association on Sept. 30 that removes the district’s low-deductible health plan and retains the Blue Cross Blue Shield PPO HSA as the primary staff health insurance option.

District staff told the board the SEA leadership held a membership vote and an “overwhelming majority” approved the change. The administration said employees who are already enrolled in the PPO HSA plan will see no change; employees migrating from the low-deductible plan to the PPO HSA plan will see lower costs compared with the low-deductible option.

Fiscal impact: district staff reported that the change will produce recurring annual savings of more than $1,500,000 combined for employees and the district. The board was given a breakdown of roughly $640,000 in annual savings to employees and about $860,000 in annual savings to the district. Administrators said those savings were not reflected in the most recent approved budget and that the district’s benefits line will be reduced accordingly in the upcoming plan year.

The board moved and seconded the measure and approved it by roll call. Board staff completed signature steps at the meeting to finalize the MOU.

Why it matters: the negotiated change is intended to preserve employee access to the PPO network while reducing overall costs; district leaders said the district share of savings could be reinvested in staff and school priorities going forward. Implementation will begin in the upcoming plan year and the MOU frames the transition process between the district and the union.

Speakers and sources in the meeting record include district staff who outlined the MOU terms and SEA leadership representatives; direct numbers and the summary of membership approval were presented to the board during open session.