1. PURPOSE
It is the expressed intent of the Board, through this policy, to acknowledge full-time certified employees who have provided years of service to the School District by offering a voluntary early retirement incentive subject to the terms and conditions set out in this Policy.
2. STATEMENT OF NON-DISCRIMINATION
The School District will not discriminate against any employee on the basis of age, sex, sexual orientation, gender identity, race, color, creed, religion, national origin, or disability through the application or administration of this policy.
3. ELIGIBILITY
A regular, full-time certified employee may apply for early retirement benefits if these eligibility requirements have been met:
- The employee has reached or will reach at least the age of 55 at the actual date of retirement,
- The employee has continuously worked a minimum of the most previous 10 years of service at the School District and is actively employed on a full-time basis during the last school year prior to early retirement,
- The employee is not eligible for, applying for, or receiving benefits under a leave of absence or other School District plan,
- The employee has not received a notice concerning termination of the employee’s contract, unless the notice is based upon reasons which are related to staff reduction, and
- The employee has not previously received early retirement benefits from the School District.
4. DEFINITION OF TERMS
- Years of service - Years of service must be consecutive and most recent.
- “Continuously Worked” - Continuous employment must be without any voluntary interruptions of service. Interruptions due to reductions in force or due to approved leaves of absence will not constitute a voluntary interruption in service, unless the interruption or leave exceeded twenty-four (24) consecutive months in length. However, the period of time during which an employee is absent due to a reduction in force or due to an approved leave will not be counted for purposes of determining the minimum years of service required to establish eligibility.
- Regular full-time certified employee - A regular full-time certified employee is an employee who works as a teacher, counselor, librarian nurse or administrator for a minimum of six hours per work day for 180 work days or more each school year.
- “Actively employed” – means the employee has been at work and performing assigned duties for at least 80 percent of the work days over the previous 12 months.
5. APPLICATION
- Applications must be received by the Superintendent not later than January 14, 2019. However, the advance notice requirement may be waived at the discretion of the Board. Any decision to waive the advance notice requirement shall not establish any precedent with regard to future applications which fail to meet the advance notice requirement.
- The date of retirement for eligible employees will ordinarily be the end of the individual’s contract year. However, another date may be requested and approved by the Board.
- Application materials must include the following forms:
- Resignation and Request for Early Retirement and Resignation
- Designation of Beneficiary
- Agreement Not to Reapply for Employment.
- Release of all claims.
- An employee’s application for early retirement benefits is not, in itself, a resignation nor does it require the Board to accept the application. However, acceptance by the Board of an employee’s application for early retirement will be considered a voluntary resignation and termination of the employee’s contract of employment. If the Board does not accept the employee’s application, the employee’s contract will continue in effect.
6. BOARD’S RIGHT TO LIMIT OR DENY BENEFITS
The Board reserves the right to determine whether any early retirement benefits will be paid in a given year, and, if so, to determine how many employees will be granted benefits. The Board expressly reserves the right to reject any application for early retirement benefits.
If the Board decides that only a limited number of employees will be granted early retirement benefits in a given year, the Board will then determine the maximum number of employees who may receive benefit. Recipients will be selected on a seniority basis. If there is a tie between or among employees using the seniority rule, the tie will be broken by a random process.
7. EARLY RETIREMENT BENEFIT
- Early retirement benefits are offered as an inducement to, and consequence of, retirement and are not to be construed as a continuation of salary. Benefits will be provided to the retiree or the beneficiary named by the retiree if the retiree dies before all benefits are paid.
- The value of the early retirement benefit shall be 30% of the employee teaching salary schedule, includes TSS funds) in effect the last year of the employee’s employment with the school district. Extra-curricular, extended contract, and any other additional or supplemental pay will be excluded from the early retirement calculations.
- Payment of this benefit shall be made in the August payroll following when the applicant files and is approved for the retirement benefit. The incentive will be paid in one lump sum to a state-sponsored 403B retirement plan for the eligible employee. The eligible employee will not be able to use the early retirement incentive to directly purchase district-sponsored insurance.
- Payments are subject to applicable taxes such as withholding for federal and state income taxes, social security etc. Employees will not be paid interest on any funds held by the School District.
Employees are advised to seek independent advice with regard to tax or financial consequences associated with any action taken by them under this policy.
8. CONTINUATION OF INSURANCE
Employees retiring under the early retirement program may be eligible to continue participation in the School District’s group insurance plan at the employee’s own expense. Employees must meet the requirements of the insurer and must pay the monthly premium amount in full to the board secretary prior to the due date for the School District’s premium payment to the insurer.
This insurance coverage will cease when the licensed employee/retiree reaches age sixty-five, secures other employment in which the employer provides insurance coverage, or dies. If dependent insurance coverage is carried, that coverage may continue beyond the employee's/retiree's sixty-fifth birthday for a period of up to five years or until the dependent reaches age sixty-five.
9. RIGHT TO AMEND OR REVOKE
The Board reserves the right to amend or revoke this Early Retirement Policy or any provision of this policy at any time, with or without notice.
The Board also reserves the right to waive any requirement or condition of this policy at its discretion and at any time. Any decision by the Board to waive a requirement or condition which is a part of this policy shall not establish any precedent with regard to future requests for a waiver.
Approved: 03/15/2021 Reviewed: 02/15/2021 Revised: 02/15/2021
