ITEM NUMBER: 4.D.
School Board Regular Meeting
- Meeting Date:
- 12/16/2024
- Prepared By:
- Shannon Sinning
Item Type:
Subject:
Approval of Superintendent Contract Revision
Background:
In August the School Board approved a superintendent contract with Paul Peterson for July 1, 2025 to June 30, 2028.
The school district has been informed that the MN State Retirement System (MSRS) will not honor the wellness credit language in the contract because it is considered a stand alone benefit that is different from other employees, and therefore is considered discriminatory. Specifically, the wellness benefit payout does not have a cap on the amount of benefit that could be paid into MSRS.
To resolve this situation, two revisions are being recommended:
The school district has been informed that the MN State Retirement System (MSRS) will not honor the wellness credit language in the contract because it is considered a stand alone benefit that is different from other employees, and therefore is considered discriminatory. Specifically, the wellness benefit payout does not have a cap on the amount of benefit that could be paid into MSRS.
To resolve this situation, two revisions are being recommended:
- Add the following sentence to the Wellness Credit portion of the contract; In no event, however, shall the Superintendent’s wellness incentive pay exceed Twenty-Six Thousand Dollars ($26,000).
- Add the following language to the tax-deferred savings plan language: In addition to any School District match contributions to a 403(b) plan, the school district shall also contribute an additional seven thousand five hundred dollars ($7,500) to the Superintendent’s 403(b) on an annual basis. The total School District contributions to the Superintendent's 403(b) plan shall not exceed twenty-five percent (25%) of the Superintendent’s annual gross salary.
Recommended Action:
The Board Executive committee recommends Board approval of the revisions on the superintendent contract.