A new five-year contract for Gerald McLaughlin, superintendent of the Loyalsock Township School District, raises his pay in the next school year by about $9,000 to $137,000, or about 7 percent.

In the second through fifth years of the contract, the superintendent will receive annual salary increases of 1 percent with the possibility of an additional 2 percent based on performance, business manager Dan Egly said.

McLaughlin’s salary is $128,000 this year. The superintendent declined insurance upon retirement, which Egly cited as the reason for the size of his raise in the first year of the pact.

“Most superintendents do not do that. Most districts pay their superintendents’ insurance until age 65,” Egly said.

The district spent about $1.95 million on health insurance for all its employees in the 2015-16 school year and has budgeted $1.9 million for 2017. Health insurance costs increase by about 10 percent on average annually, Egly added.

On average, annual health insurance costs range from $7,500 for a single plan to $22,000 for a family plan per employee.

McLaughlin has no intention of retiring after his next contract ends in 2022, he said, though he plans to retire before age 65 “without a doubt.”

“I have at least eight years left, I hope,” McLaughlin said. “If I’m healthy, I’ll stay as long as I’m making a positive impact.”

McLaughlin has been with the district since 2000, when he became its business manager. He was acting superintendent in the 2009-10 school year and formally was appointed superintendent in 2014.

The new contract will include health insurance, paid cellular and data services, a laptop or notebook computer for office and home use, and annual reimbursement of up to $1,000 for community organizations — as approved by the school board — of which McLaughlin chooses to be a part.

The terms are the same as the superintendent’s current contract, which expires June 30, Egly said.