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District warns 5.5% PERS increase will cost roughly $726,000 next year
Summary
Staff told the committee the district expects a roughly 5.5% increase in PERS retirement costs that would add about $726,000 to the district's first-year expenditures; the presentation noted prior bonding reduced the district's exposure compared with peers.
Budget-presenter (S4) and staff member (S2) described the district's projected increase in retirement contributions driven by PERS (the state retirement system). S4 said, "Our district is having an increase of about 5.5%." Staff estimated that increase would cost the district about $726,000 in the first year.
The presenters noted that the district previously used bonding to address part of its unfunded actuarial liability (UAL), which reduces the district's rate increase compared with other districts that did not bond. Staff cautioned that larger PERS increases elsewhere have approached much higher percentages and that districts vary widely in exposure.
