As Naperville School District 203 explores all options to help close a projected $12.3 million gap in next year’s budget, the district is now offering a one-time retirement incentive to encourage eligible educators to retire at the end of this school year.
School board members during a meeting this week approved the incentive as a memorandum of agreement between the district and its teachers union, the Naperville Unit Education Association.
Incentive to help pay retiree insurance premiums
The incentive offers up to $48,000 for premiums retirees would pay to participate in health and dental insurance programs, according to the memo.
The newly approved memo expands the eligibility for this insurance payment assistance to all teachers who submit “an irrevocable intent to retire” in the Teachers’ Retirement System by March 6, 2026. If a teacher’s retirement would require the district to pay a penalty for exceeding pension system limits related to final average salary, the memo says the health premium incentive could be reduced.
Incentive could help address budget deficit, but one board member objects
Officials have said District 203’s budget is facing a structural deficit projected to rise to $27.2 million during the 2030-31 school year if no adjustments are made. Michael Frances, chief financial officer, said administrators are implementing a three-pronged approach to decrease expenses: by reducing discretionary spending, consolidating duplicative resources, and streamlining staffing…