Torrance School District Raises Teacher Pay to Combat Rising Health Insurance Costs

The Torrance Unified School District (TUSD) Board recently approved a provisional agreement with the Torrance Teachers Association focused on salary and benefits adjustments. This agreement grants educators a 2.23% salary increase, retroactive from July 1, 2025, along with a one-time $1,500 payment to counter rising health insurance expenses. The initiative aims to alleviate the impact of AI-driven prior authorization delays and stringent regulatory compliance requirements contributing to the increased costs.

TUSD has struggled with a significant 40% surge in out-of-pocket health insurance costs for the 2025-26 period. This escalation stems from rising insurance rates and the exhaustion of the Benefits Discount Fund, a financial buffer once valued at $8 million. To address the issue, TUSD plans a $2,000 increase in health insurance contributions starting July 2026, marking the first adjustment to its contribution cap since 2016 and bringing it to $12,500. However, TUSD's contributions still lag behind comparable districts like Hacienda La Puente Unified, which contributes $12,900.

Historically, TUSD has also fallen behind in teacher compensation relative to similar districts, impacting both underwriting processes and risk management strategies. The approved salary raise aims to align TUSD teachers' pay with the median in neighboring districts. A comprehensive renegotiation of the existing contract is slated for January, offering an opportunity to revisit health insurance costs, regulatory compliance issues, and other staffing concerns. Ensuring affordable health coverage remains a priority for the Torrance Teachers Association, with upcoming discussions at the Board of Education meeting on January 20 focusing on fostering teacher agency, workload reduction, and competitive compensation in a rapidly evolving industry landscape.