The school district offers an early retirement plan for full-time licensed employees.  Full-time licensed employees are licensed employees who are regularly scheduled to work 40 hours per week and who are currently performing their assigned duties within the school district.  A licensed employee is eligible under the early retirement plan when the licensed employee:

• Is at least age 56 prior to the start of the next school year.
• Completes a total of 15 years of service as a full-time licensed employee to the school district;
• Submits an application to the superintendent for participation in the plan on or before January 27 for tier one and on or before March 1 for tier two of the year in which the employee wishes to retire;
• Submits a written resignation.  The resignation may be contingent upon approval by the board of participation in the voluntary early retirement plan; and
• Receives board approval of the licensed employee’s application for participation in the early retirement plan, of the licensed employee’s resignation and of the disbursement of early retirement incentive to the licensed employee.

Approval by the board of the licensed employee’s early retirement application shall constitute a voluntary resignation.  Approval by the board of the licensed employee’s early retirement application will also make the licensed employee eligible for disbursement of the early retirement incentive the sooner of July 1 following the licensed employee's approval for early retirement or a date mutually agreed upon by the school district and the licensed employee.  Failure of the board to approve the licensed employee’s early retirement application will make the licensed employee’s current contract with the board continue in full force and effect.

Benefits:

Lump Sum Amount:

A lump sum of $35,000.00 (for tier one) and a lump sum of $15,000.00 (for tier two) will be deposited into a 403(b) account in January of the year following early retirement.

Unused/accumulated sick leave formula:

Employees may qualify for additional per diem pay for unused/accumulated sick leave upon retirement from the district.  The employer’s per diem shall be the daily rate as provided in Schedule A for the regular school year prior to the year of retirement.  The district will pay the incentive amount concurrent with the early voluntary retirement stipend.

110 to 120 sick leave days – 20 additional days per diem pay

100 to 109 sick leave days – 15 additional days per diem pay

90 to 99 sick leave days – 10 additional days per diem pay

80 to 89 sick leave days – 5 additional days per diem pay

Insurance:

Upon retirement, the licensed employee is eligible to continue participation in the school district’s group insurance plan at the school district’s expense by meeting the requirements of the insurer, for tier one.  For tier two, the school district will pay 75% of the premium and the employee will pay 25% of the premium.  Any rate increase beyond what is paid during the 2019-2020 school year will be at the retiree’s expense.  The insurance coverage will cease when the licensed employee/retiree reaches age 65, 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 65^th birthday for a period of up to five years or until the dependent reaches age 65.

Beneficiary:

In the event of the death of the licensed employee prior to payment of the early retirement incentive but after the licensed employee’s retirement has begun, the early retirement incentive will be paid to the designated beneficiary in one lump sum payment.  In the event no beneficiary is designated, the incentive will be paid to the licensed employee’s estate in one lump sum payment.

The board has complete discretion to offer or not to offer an early retirement plan for licensed employees.  The board may discontinue the school district’s early retirement plan at any time.  Upon adoption of this early retirement plan, licensed employees meeting the eligibility requirements will have 1 year to utilize this early retirement plan.

This policy is not offered for the 2016-2017 school year.

This policy is offered for the 2017-2018 school year.

This policy is not offered for the 2018-2019 school year.

This policy is offered for the 2019-2020 school year.

This policy is not offered for the 2020-2021 school year.

Legal Reference:  29 U.S.C. §§ 621 et seq. (2012).
                                      Iowa Code §§ 97B; 216; 279.46; 509A.13.
                                      1978 Op. Att’y Gen. 247.
                                      1974 Op. Att’y Gen. 11, 322.

Cross Reference:  407.3    Licensed Employee Retirement
                                      413.2    Classified Employee Retirement

Approved:  2-10-97              
Reviewed:  12-12-22            
Revised:  9-12-16, 3-11-19, 12-09-19