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Health-care and pension costs top concerns at Webster budget workshop
Summary
District staff told the board retiree Medicare plans could rise as much as 50% for Jan. 1, 2027, TRS contributions are down to 8.24% while ERS increased to about 17.6%, and the health-care budget is approaching $40 million — all factors adding uncertainty to next year’s spending plan.
Retiree health-care and pension contributions were a central focus at the Webster Central School District’s Feb. 24 budget workshop, where district staff warned that retiree Medicare costs and volatile open-enrollment shifts in active plans make health-care budgeting especially uncertain.
Staff member said the district’s retiree Medicare (Rash 1) bill could increase by about 50% for Jan. 1, 2027, and that preliminary information received the same day could push that projection higher. “We were projecting a large 50% increase for next year,” Staff member said, adding the district will analyze new marketplace estimates and return with an update at later workshops.
On pensions, Staff member said the Teachers’ Retirement System (TRS) rate fell to 8.24%, which reduces next year’s TRS bill to roughly $8.3 million, while the Employees’ Retirement System (ERS) rate rose to approximately 17.6%, moving that bill toward $4 million. Staff member described governance differences — TRS has a governing board while ERS is administered by the state comptroller — and noted the current gap between the two systems is historically large.
Staff member and board members discussed how enrollment churn during October and November open enrollment can cause large swings in health-care costs; Staff member gave an example in which 20 employees switching plans could increase costs by roughly $529,050, or about a 1.3% budget change, before rate adjustments.
The presentation also noted that FICA and other fringe costs are significant and that health care is the district’s largest benefits expenditure; Staff member said the district’s health-care budget is approaching $40 million. With several large and variable benefit lines, staff told the board the budget will require careful monitoring and likely adjustments in subsequent workshops.
Staff member said officials will re-run models after they collect more precise enrollment and marketplace data and will report updates at future sessions; no formal benefit‑related actions were taken at the workshop.
