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District warns four years of double-digit health-premium pressure; plans transfers to Lincoln Benefit Trust
Summary
Finance presenters said district and employee health premiums have risen about 15% annually for several years; the district recommends a $350,000 transfer to Lincoln Benefit Trust (with a possible $210,000 next year) and expects a roughly $700,000 budget impact (about 11.25%) for 2026–27.
District finance staff told the finance and budget committee that health insurance and pension cost pressures are among the largest drivers of the 2026–27 budget increase.
Trevor said the district has seen premium increases of about 15% or more over the last three years and is recommending another ~15% increase for 2026–27 for district and employee premiums. "For 26 to 27, we're recommending another 15% increase," he said.
The administration plans to transfer $350,000 to the Lincoln Benefit Trust in 2025–26 and is considering an additional $210,000 for 2026–27 to smooth employer rates; the transfers are part of a multi-year approach aimed at aligning funding rates with plan costs. The presenters noted that these transfers are planned to stabilize future employer rates and that last year's transfer was $490,000.
Pension costs through the public school employee retirement system (PEASERS) are also a driver. Trevor said the employer contribution is projected to rise from roughly 34% to about 34.72%, producing an estimated $413,000 budget impact; half of that increase (about $206,000) is expected to be offset by state reimbursement.
Finance staff characterized the net budget impact of the proposed insurance changes as about $700,000 (roughly an 11.25% budget impact on the district's insurance cost line), noting that attrition and unfilled positions reduce the full effect of premium increases because fewer people on payroll lowers benefit exposure.
The committee will be asked in December to approve the medical‑rate change and the planned transfer to Lincoln Benefit Trust so that the trust can factor rate changes in January; the district will return in January with a recommendation on meal prices tied to Chartwells renewal work.
No formal board vote on these insurance and pension actions was taken at the committee meeting; the items were presented as recommendations for upcoming board action.
