1. Princeton Public School Bargaining Unit Contracts Special Meeting of the Board of Education May 20, 2015

2. 2015-162016-172017-18 Salary increase 2.5% Longevity $ 100/step No change Cost-saving steps accepted by union eliminate high-cost plan changes in deductibles for most subscribed plan Rx cost containment provisions High deductible HSA as option (including 60% contribution to deductible by BOE) Premium levels Tier 4 of Ch. 78 Tier 4 of Ch. 78 Tier 4 of Ch. 78 Additional comp from shared savings $73,188 (HC relief stipends) $34,664 (HC relief stipends) $36,948 (HC relief stipends) Proposed New Agreement – PRESSA & PPS BOE

3. 2015-162016-172017-18 Base salary increase 2.39% 2.38%2.37% Longevity No change Cost-saving steps accepted by union Changes in deductibles for most subscribed plan High deductible HSA as option(including 60% contribution to deductible by BOE) Premium levels Tier 4 of Ch. 78 Tier 4 of Ch. 78 Tier 4 of Ch. 78 Additional comp from shared savings Option to sell back 2 unused vacation days/year Proposed New Agreement – PAA & PPS BOE

4. Comparison – PRESSA & PAA PRESSA Salary:2.5%; 2.5%; 2.5% Longevity:$100/step year 1; no change yrs 2& 3 Ch. 78:Tier 4 levels Cost-savings Measures: -Elim. of high-cost plan -Deductibles changes -Rx changes -HSA as option Shared savings: Healthcare relief stipends each year PAA Salary:2.39%; 2.38%, 2.37% Longevity:No change all 3 years Ch. 78Tier 4 levels Cost-savings Measures: -Deductibles changes -HSA as option Shared Savings: Optional “sell-back” of 2 unused vacation days/yr

5. Comparison: PRESSA Agreement & BOE’s May 4 offer to PREA PRESSA Agreement Salary increase:2.5%/year Longevity:$100/step year 1; flat years 2 & 3 Premium Contributions: Tier 4 levels Cost-savings Measures: -Elimin. high-cost plan -Deductibles changes -Rx changes -HSA as option Additional compensation from shared HC savings: Year 1 – $73K Year 2 - $35K Year 2 - $37K HC relief stipends annually to members who subscribe Total effective compensation (salary + add’l compensation): 3.73% Year 1 3.08% Year 2 3.11% Year 3 BOE May 4 Offer to PREA Salary increase:2.44% year 1 2.20% year 2 2.30% year 3 Longevity:To be negotiated Premium contributions: Tier 4 levels Cost-savings measures: -Deductibles changes -Rx changes -HSA as option Additional compensation from shared HC savings: Year 2 - $200K Year 3 - $150K HC relief stipends annually to members who subscribe* Total effective offer (salary + add’l compensation): 2.44% year 1 2.87% year 2 2.79% year 3

6. Notes on BOE’s May 4 offer to PREA: Salary increase offer of 2.44% is retroactive to July 1, 2014; sufficient to fully fund the cost of increment on the current salary guide Salary increase of 2.3% in year 3 is more than the cost of increment on the current salary guide Effective total compensation offer is higher than statewide average settlements Similar to PAA & PRESSA agreements, board’s offer of additional compensation is contingent on shared savings from HC cost-containment measures and on maintaining Tier 4 health care contribution levels Since July 2014, over 107 local teachers’ unions in New Jersey have settled with their school boards with no changes to their Chapter 78 premium contribution levels If association accepted shared savings in form of healthcare relief stipends (as PRESSA did), that amount is non-pensionable, non-cumulative and only paid to employees who take healthcare benefits If association accepts shared savings in form of additional salary, that amount would be pensionable, cumulative and distributed to all employees on negotiated salary guide Board’s salary offer in years 2 & 3 proposed distribution of at least $175,000 of total dollars in each year to employees hired before 9/2011 currently on steps 3 through 8 to address inequities in current guide Board made clear offer was not “final” but subject to further negotiation; board requested counter-offer and/or another working session; PREA negotiating team chose to go to factfinding Board continues to be open to further conversation