407.6 - Early Retirement Incentive Plan
PRAIRIE VALLEY COMMUNITY SCHOOL DISTRICT
EARLY RETIREMENT POLICY
The Prairie Valley Community School District Early Retirement Policy as described in this document has been approved by the District's Board of Directors. As approved, it applies only to Licensed Teaching Staff. This Early Retirement Policy does not vest rights in any District employee whether or not the employee is currently eligible for the policy. This policy replaces any and all early retirement policies and/or programs previously adopted by the District's Board of Directors and any and all previous policies and/or programs are hereby revoked.
The Board of Directors of the Prairie Valley Community School District has determined it appropriate to provide an early retirement incentive to certified employees of extended tenure who opt to retire from the District, pursuant to the terms of this Early Retirement Policy.
The purpose of this policy is to provide the District's employees with the option and opportunity for early retirement from their employment with the District and to aid the employee in their transition from public service to retirement, and to save District funds through a reduction in staff and/or replacement savings.
This Plan will only be offered until April 30, 2012. Any eligible employee who has not committed their participation in the plan on or before April 23, 2012 shall lose their opportunity to do so until the 2015-2016 school year when the early retirement incentive shall be considered.
I. EMPLOYEE REQUIREMENTS
A. Determining Eligibility:
An employee is deemed to be eligible for this policy if they have completed at least fifteen (15) years of contracted service with the Prairie Valley Community School District and if they are at least fifty-five (55) years old.
However, no employee will be eligible for this Early Retirement Policy if:
1) They have received an official notice of layoff or termination; or
2) They are subject to termination pursuant to Iowa Code Section 279.15 or 279.27.
B. Qualifying for Participation in Policy:
An eligible employee qualifies for participation in this policy upon completion of the following requirements:
1) submission of a written application to participate in this policy to the Prairie Valley Community School District Administrative Office on or before 4:00 p.m. on November 30, 2011, addressed to the Board Secretary (the Board of Directors reserves the right to waive strict compliance with the application deadline if there are extenuating circumstances unknown to the employee at the time and the Board in its sole discretion decides to waive strict compliance with the application deadline). On early retirement policy, employees will have 30 days (December 31st) instead of 45 days to consider participation.
2) submission of a written resignation addressed to the Board of Directors with the written application to participate in the policy; and
3) the Board's acceptance of the written resignation. The resignation will not be binding unless the employee is eligible and appropriately qualifies under the policy and the Board accepts the employee's written resignation. The Board's acceptance of the written resignation will be considered final action and shall mean that the employee's application is accepted and the employee's contract and employment duties will end after the last day of the current fiscal year.
In all cases, completion of the above requirements is realized by receipt or certification by the Board Secretary.
Each participating employee shall receive as early retirement incentive pay, a cash payment, equal to 140% of the difference between the employee's 2011-2012 salary on the 2011-2012 salary schedule and the 2011-2012 BA Lane Step I hiring base rate of pay, including all teacher compensation payments but excluding extra duty and extra-curricular payments.
The employee may elect to continue their existing single or family coverage under the District's health insurance program as long as they pay the monthly premiums and are permitted to continue coverage by the insurer. To continue their health insurance coverage, the employee shall pay the monthly premium amount to the District's business office on a date mutually agreed upon prior to the date the District's premium payment is made to the insurance carrier.
Nothing herein shall limit the District's ability to change the terms of its existing health insurance plan. This early retirement policy in no way guarantees that an employee will be provided any certain level of health insurance benefits or premiums during the time of the employee's participation in this early retirement policy.
The Employee may choose from the following benefit options of payments; one lump payment, 12 payments over one year or up 60 payments over five years. The Employee may also elect to have this amount to be applied to their health insurance for up to five years or until the amount runs out. If after five years there is any remaining amount it will be paid to in one lump sum the following month.
The employee will receive their early retirement pay in three equal payments with the first payment to be made on or before September 20, 2012, the second payment to be made on or before September 20, 2013, and the third payment being made on or before September 20, 2014.
If a participating employee dies before the full amount of their benefit under this policy is paid to them, the remaining amount of their benefit will be paid to the participating employee’s designated beneficiary, if one is designated, or to the participating employee’s estate.
III. EMPLOYEE RIGHTS
In the event this Early Retirement Policy is altered or discontinued, persons who separated from employment with the District under its provisions will continue to receive the benefits in effect and authorized by the Board of Directors at the time the employee's letter of resignation was accepted.
The adoption of this Early Retirement Policy shall not vest any rights in any employee whether or not the employee is currently eligible for early retirement. Furthermore, the District shall not be obligated to provide any policy benefits to any employee after the expiration of the policy, except to those Early Retirement Policy participants whose early retirement pursuant to this policy has commenced prior to the expiration of the policy.
IV. STATUS OF PARTICIPANTS
An employee who elects to participate in the District's Early Retirement Policy will become a retired employee and will be entitled to all rights and privileges of retired employees under applicable law and the policies of the Prairie Valley Community School District Board of Directors.
The Prairie Valley Community School District shall not be required to consider an application for employment from an Early Retirement Policy participant; provided however, that, at the sole discretion of the Board of Directors, the District may employ Early Retirement Policy participants as temporary substitute employees.
Each employee who elects to participate in the District's Early Retirement Policy must specifically agree to hold the District harmless and indemnify it if the participant attempts to submit an application for employment or otherwise attempts to be reemployed with the District. The participant is not precluded in any way from accepting employment with any employer other than the District after fulfilling the terms of the employee's 2011-2012 contract with the District.
Adopted: February 20, 2006
November 21, 2011
Reviewed: January 10, 2009
October 17, 2011
January 21, 2013
Revised: October 19, 2009
October 17, 2011