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District staff warn PERS rate increases could add more than $2 million to payroll costs
Summary
Director of Business Services Michelle Jones told the board that employer PERS rates for the 2025–27 biennium will rise substantially—Tier One/Two to 13.82% and OPSRP to 10.64%—and that the district expects this to mean over $2 million in additional payroll expenditures in 2025–26.
Michelle Jones, Director of Business Services, presented projected PERS employer-rate increases for the 2025–27 biennium and the associated budgetary implications. She reported the district’s 2023–25 rates (Tier One/Two at 2.83%) will increase to 13.82% for Tier One/Two and that OPSRP rates will increase from 0% to 10.64% for 2025–27. Jones said the change would equate to over $2 million in increased payroll expenditures for the 2025–26 school year and noted ESSER funds are expiring.
Jones told the board she will attend the OASBO conference in November to focus on PERS and potential PERS-bond strategies and will keep the board apprised as more information becomes available. She emphasized that the rates are set and cannot change, and that three employee groups will be in negotiations this year, with potential trickle-down effects to district bargaining.
