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Board approves Valley Schools benefit renewals; district absorbs most premium increase
Summary
The board approved Peoria Unified’s employee benefits renewal through Valley Schools for 2025–26; administration said the district will absorb the net premium increase for employees and use funds in the Valley Schools net position to limit employee cost increases.
The Peoria Unified School District Governing Board approved health, dental, vision and ancillary employee benefit renewals March 13 and accepted administration’s recommendation to absorb the employer cost increase for fiscal 2026.
Valley Schools Management Group staff and district benefits staff presented a financial review of Valley Schools insurance pools (property/liability, workers’ compensation, and employee benefits) for fiscal year 2024 and explained how Peoria’s contributions and net position in the Valley Schools Employee Benefit Trust affect premiums and renewals.
Administrators recommended a renewal package that keeps employee out‑of‑pocket premium shares unchanged for 2026 by using Valley Schools reserves and district funds. The district’s annual contribution will increase by approximately $715,000 (district cost), but administration recommended no increase to employee premiums for the coming year. The recommendation included: - Keeping the PPO medical plan without plan design changes and no employee premium increase. - Two HDHP options were evaluated; administration recommended continuing the current HDHP design (with IRS‑required deductible adjustments) and retaining a $1,000 employer HSA contribution plus a wellness incentive. - No rate increases for ancillary benefits (dental, vision, short‑term disability, etc.) were proposed.
Board members asked about the size and safety of Valley Schools’ net position, whether investments are similar to other governmental entities, and how the district’s contribution compared to peers. Valley Schools staff explained the pools are self‑funded and use excess/reinsurance to cap risk; the employee benefit group’s purchasing power (about 52,000 covered lives statewide) helps contain medical cost exposure and provides data used for wellness programming.
The board approved the renewals as presented. Administration said it will continue to monitor claims and the Valley Schools net position, and that future benefit choices will be tied to budget capacity and board direction.
Ending note: The approved package is intended to protect employees from premium increases for one year while the district manages employer costs within the limits of one‑time and ongoing funds.
