New three-year teachers' union contract raises pay, boosts health benefits, and adds retirement payout

What happened

The Board of Education's meeting packet includes a new FY26-28 Collective Bargaining Agreement between the district and the Kenai Peninsula Education Association (KPEA), covering all certificated teachers districtwide. Key changes include a potential 1-2% salary schedule increase tied to state funding levels, a $1,000 one-time payment to eligible employees in September 2026, new January 2027 health plan changes (60% out-of-network reimbursement, 80% dental basic care, no fourth-quarter HRA deductible rollover), a new sick-leave cash-out benefit for 20-year veteran employees unable to use TRS Tier III, and new provisions for classified-to-certificated salary credit and special education workload support (paid Saturdays for IEP documentation).

Why it matters to families

This agreement affects compensation, health benefits, and working conditions for all certificated teaching staff across the district for three years, with financial provisions tied to state Base Student Allocation funding that could affect the district's budget obligations and teacher retention.

The evidence

Packet text: 'COLLECTIVE BARGAINING AGREEMENT BETWEEN THE KENAI PENINSULA BOROUGH SCHOOL DISTRICT AND THE KENAI PENINSULA EDUCATION ASSOCIATION FOR THE YEARS 2025-2026 2026-2027 2027-2028'; includes salary schedule increases tied to BSA funding, new health plan changes effective January 2027, a $1,000 one-time payment in September 2026, and new sick-leave-to-retirement payout provisions for 20-year employees.

The source