Palmerton Area School District unanimously approved an updated Act 93 Administrative Compensation Plan last week running from July 1, 2025, through June 30, 2029.

Notable adjustments, from the current administrative contract include modifications to salary increases, health insurance contributions, and additional benefits, according to information obtained through a right-to-know request.

Who is covered?

The agreement categorizes covered positions into three groups:

Group One: includes positions such as the assistant to the superintendent, director of technology, high school principal, junior high school principal, high school assistant principal/athletic coordinator, elementary principals, and the director of special education and student services.

Group Two: includes the director of district facilities.

Group Three: includes school psychologists and, in the 2025-29 agreement, social workers are added to this group.

Salary increases

One of the most significant changes in the new agreement is the reduction in annual salary increases for administrators. During the 2021-25 period, administrators in all groups received a 4% salary increase annually, contingent on satisfactory evaluations by the district superintendent.

In contrast, the 2025-29 agreement reduces these annual increases to 3% across all groups, also dependent on performance evaluations.

Health insurance contributions

Under the new agreement, administrators will contribute slightly more toward their health insurance premiums.

For example, single coverage premium sharing will increase from $32.50 biweekly in the 2021-25 plan to $36 in the 2025-29 plan.

Family/parent and children coverage will rise from $55 to $80.

Additionally, the emergency room co-pay under the new plan has increased to $100, up from $50 in the previous agreement, unless the administrator is admitted to the hospital. Deductibles for in-network services have also risen. Individual coverage will increase from $200 to $300, and family coverage will rise from $400 to $600.

Administrators who decline district-provided health insurance will receive an increased annual bonus. This amount was previously $4,000 under the 2021-25 agreement but will rise to $5,000 in the 2025-29 plan.

Longevity bonuses

The 2025-29 plan preserves the longevity bonus structure for administrators but retains it at the same levels as the prior agreement:

• $1,000 annually for 5-9 years of service.

• $1,750 annually for 10-14 years of service.

• $2,750 annually for 15 or more years of service.

However, these bonuses continue to be paid into designated 403(b) accounts unless otherwise requested.

Retirement benefits

The provisions regarding retirement incentives and the use of accumulated sick days remain consistent between the two agreements.

Eligibility for the retirement incentive plan kicks in if members have completed 30 years of service with the Pennsylvania Public School Employees’ Retirement System and at least 10 years with the Palmerton, and they provide notice of their intent to retire by April 1 of the year they plan to retire. Retirees receive a one-time payment of $5,000 at the time of retirement.

Administrators who retire before age 65 with at least 20 years of PSERS-eligible service with Palmerton and are at least 55 years old are eligible for single-coverage health insurance benefits. This includes medical, prescription drug, vision, and dental coverage equivalent to what is provided to current employees. Coverage continues until the retiree turns 65 or becomes eligible for Medicare.

At least 10 years of service at Palmerton qualifies administrators to receive compensation for unused sick days upon retirement. The rate is set at $50 per unused day.

Administrators with at least 100, 150, or 200 unused sick days upon retirement are eligible for one, two, or three years of district-provided health insurance, respectively. Those benefits apply only to administrators and dependents ineligible for Medicare.

Other unchanged benefits

Many benefits provided in the 2021-25 agreement carry over into the 2025-29 plan, such as:

• annual physical examination reimbursements,

• professional membership dues for up to three associations,

• 100% tuition reimbursement for approved graduate-level coursework contingent on a grade of “B” or better, and

• sick leave policies, which include up to 30 days of leave for recovery from injuries incurred during professional duties.