The Neenah Joint School District in Wisconsin is planning to revise employee insurance benefit and retirement plans.

Local officials say they are trying to develop a more sustainable system than the current one, noting that proposed alterations could net savings of more than $90 million over the next 26 years, halving projected pension liabilities in that time frame, the Post-Crescent reports. The retirement changes will not be implemented until the fall, allowing more time for them to be considered and possibly altered.

District Administrator Mary Pfeiffer told the news source that current benefit levels are leading the district to develop some of the highest liabilities in Wisconsin, a level of payment it cannot maintain. The district also plans to offer a new high-deductible health plan and increase base pay for teachers, among other changes, as it seeks to attract talent while limiting expenses.

For somewhat higher costs, employees will still have the option to purchase point-of-service coverage. The changes were made possible partly by changes in Wisconsin state law which gave district officials more direct control over their policies.

Wisconsin school districts are struggling to balance their budgets as state aid cuts have occurred repeatedly in recent years, with reductions of more than $8 million for the 2011-2012 school year.

One school business official told the Watertown Daily Times that local government finances can make up the difference by raising property taxes and through other methods. One of the most common steps in recent years has been increasing employee contribution levels to health insurance benefits and retirement programs, coupled with reductions in overall budgets. Districts with declining enrollment may have experienced particularly large cuts in state aid, the news source notes.

A number of districts are also switching health insurance carriers and taking other steps to cut costs. At the same time, the loss of collective bargaining agreements and the prospect of unpredictable changes to retirement obligations and benefits is encouraging some of the state's teachers to retire earlier, according to the Leader-Telegram.

With teachers uncertain about the fate of their benefits and compensation, both during employment and retirement years, some feel their options are being restricted. Concerned teachers may retire years earlier than planned to lock in retirement benefits before changes are made, feeling that it is a financial necessity.