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Lancaster’s teachers will receive 3.8 percent yearly pay raises, including their step increment adjustments, under a two-year contract extension approved this week by the School Board.

The salary increases cover teachers on a 21-step schedule, and would put the starting pay for a teacher with a master’s degree at $42,000, while the highest-paid teacher with a master’s would earn about $90,500.

The contract extension – which spans school years 2014-15 and 2015-16 and runs through Aug. 31, 2016 – also calls for teachers to pay more for their health insurance coverage.

Currently, Lancaster teachers pay for 11 percent of their health insurance premiums. The contract extension requires them to pay 12 percent for 2014-15 and 13 percent for 2015-16.

The extension was approved by the Lancaster Central Teachers Association, representing 478 full-time teachers, and adopted this week by the School Board.

The teachers contract would have otherwise expired next Aug. 31.

The contract extension also included the teachers union signing the annual performance-evaluation agreement before the Sept. 1 deadline, saving the district about $600,000 in state aid, said Superintendent Michael J. Vallely.

email: krobinson@buffnews.com