OTSEGO, Mich. — Otsego Public Schools teachers will receive a 2 percent salary increase in the coming year after agreeing to a health insurance switch that will save the school district $500,000, according to The Kalamazoo Gazette.

The one-year contract calls for switching from the Michigan Education Special Services Association health plan to one offered by Priority Health, The Gazette reported, as well a switch in dental plans that will save up to an additional $40,000.

Teachers will pay 10 percent of the premiums in 2011-2012, up from 6 percent in 2010-2011, with the district covering the remainder, The Gazette reported.

Salary “step” increases, which are pay raises given on the basis of years of experience, also will resume under the new contract; those increases were frozen under the terms of the last contract.

The district now appears eligible for additional “best practice” state funding, according to The Gazette.

SOURCE:

The Kalamazoo Gazette, “Otsego teachers agree to switch from MESSA; get 2 percent base pay raise,” July 26, 2011

FURTHER READING:

Mackinac Center for Public Policy, “A Good Start, Policymakers. Now For the Heavy Lifting,” July 4, 2011

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