District 303, Teachers OK 3-Year Contract

St. Charles teachers coming off a hard pay freeze that began in 2011 will see annual average pay increases of 2.8 percent in a three-year contract that includes an apparent nod to the state’s pension crisis.

The St. Charles Community Unit School District 303 Board of Education on Monday approved the deal with the St. Charles Education Association, whose members approved the contract last week, according to a press release issued Monday night by District 303.

The new contract takes effect in August and runs through the 2015-16 school year, according to District 303’s release, which notes that teacher pay will increase an average of 2.8 percent in each of the contract’s three years.

But the release also states that the contract includes a reduction to 4 percent from the current 6 percent annual increase given to teachers who have announced their retirement. The new contract would allow teachers to increase their pay by 12 percent over the final three years before their retirement, effectively increasing their pension payments.

It’s a practice some call pension spiking, which is legal but has been among the concerns raised in the debate over underfunded state pension systems. The pension crisis has sparked calls for reform in Illinois, California, and other states — and has included demands to end the practice of pension spiking.

The board’s vote to approve the new contract was 4-1 with one abstention: District 303 Board President Steven Spurling, Vice President Kathleen T. Hewell and board members Edward McNally and Corinne Pierog voted in favor of the contract. Board member Judith McConnell voted against it, and board member Nick Manheim abstained.

“Both the board and the teachers are aware that we still live in economically challenging times and we recognize the demands that our taxpayers are facing,” Spurling said in the press release the district issued Monday evening. “At the same time, District 303 needs to stay competitive with other high-performing districts in our area. This contract, along with the board’s decision last winter to abate a portion of the tax levy available to the district, demonstrates our efforts in both of these areas.”

Spurling was referring to the board’s decision in March to cut by $2.5 million the amount of tax revenue District 303 would collect from taxpayers in 2013-14.

According to the district’s release, the contract set to expire on August included a “hard freeze” on teacher pay starting in 2011. The release quotes St. Charles Education Association President Pam Turriff as saying that reflects that “we place a high value on the ability of the SCEA and the Board of Education to work together in a respectful and professional manner to meet the needs of our students. It is this type of partnership that keeps our community strong.”

According to current District 303 budget projections, the terms of this contract allow District 303 administration to continue to operate with balanced budgets.

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