MI School District to Cut 403(b) Contribution

September 23, 2011 (PLANSPONSOR.com) – A new labor agreement for school system employees in Fruitport, Michigan, calls for the district to suspend contributions, equal to 1.5% of the teacher's salary, it has been making to the district’s 403(b) plan.

In addition, teachers base pay will be frozen. They will not receive a step increase in pay, based on educational attainment and longevity, for the first year and a half of the contract, according to the Muskegon Chronicle.  

The two-year contract with the Fruitport Education Association calls for teachers to pay 12.5% of cost of their MESSA Choices II health care insurance for the first year of the contract. In addition, they will start paying $10 co-payments for office visits and deductibles of $100 for an individual or $200 for families. Previously, they had no office co-pays or deductibles.  

In the contract’s second year, teachers will pay 15% of health care costs if they agree to a different prescription drug plan in which common generic drugs are $2, other generics are $10 and brand-name drugs are $40. Brand-name drugs would be even more if a generic equivalent is available. Generic prescriptions would remain at $10.  

If teachers don’t agree to the change in drug plan, they will pay 17.5% of their health care costs in the second year.  

According to the news report, the clerical association agreed to the $10 office co-pays and $100/$200 deductibles for Choices II insurance. They will contribute 13% of the health insurance costs for the first year of the contract and 20% in the second year. Their wages will be frozen for both years.