Burlington Community School District
voluntary early retirement program
voluntary early retirement program
Teachers, Nurses, media specialists, Counselors, school social workers, administrators
2014-2015
2014-2015
A. Purpose.
This voluntary early retirement program provides an incentive that allows an orderly means of attrition of employees and is an additional way, but not the only way, to recognize employees for service to the District.
B. Eligibility.
This voluntary early retirement program applies to all full-time licensed (BOEE) professional employees (teachers, nurses, media specialists, counselors, school social workers, administrators) and to non-licensed supervisors on the administration team (director of human resources, supervisor of buildings and grounds, supervisor of technology, supervisor of transportation, supervisor of food services) employed on regular (not substitute) contracts during the during the 2014-2015 contract year who resign effective at the end of the 2014-2015 contract year, who are at least fifty-five (55) years of age on June 30, 2015, and who have been employed with the Burlington Community School District for at least ten (10) consecutive years immediately prior to June 30, 2015. Time on extended unpaid leave is not counted towards the required ten years, but will not break years of service. If an employee previously received voluntary early retirement payments or contributions from the District and then was rehired, the employee is not eligible to again receive payments under this program. Eligibility to receive early retirement contributions under this program is contingent upon the employee having successfully fulfilled all contractual obligations. Employees may aggregate years of part-time service with the Burlington Community School District to fulfill the full-time requirement, as long as the years are consecutive and were immediately prior to June 30, 2015. An employee who has been on extended unpaid leave of absence for more than the calendar year immediately prior to retirement shall not be eligible for benefits.
C. Application and Resignation.
An eligible employee must make application for the early retirement stipend no later than 4:00 p.m. January 16, 2015. The application shall be made on a form provided by the District and shall be submitted to the Superintendent. The Board of Directors shall have the discretion to approve or disapprove any and all applications for early retirement stipends. If the Board limits the number of applications to be approved, applications shall be considered in order of seniority with the most senior employees granted first opportunity to participate. Seniority for purposes of this program shall be determined by the date of commencing duties with the Burlington Community School District from the most recent date of hire and if a tie exists, by random drawing.
The eligible employee shall submit a resignation from all contracts with the Burlington Community School District effective at the end of the 2014-2015 contract year, which resignation may be contingent upon the Board approving the application for the early retirement program. Approval of the request for an early retirement benefit will be considered acceptance of the employee’s resignation and will constitute a voluntary termination of all of the employee’s contracts with the District.
D. Voluntary Early Retirement Benefit.
For eligible employees whose applications are accepted by the Board of Directors under this program the District will provide an early retirement benefit (“Benefit”) of $200 for each year of service for years 1 through 19 plus $300 for each year of service for year 20 and subsequent years plus $75 per day for the employee’s number of unused but accrued sick leave days at the end of the 2014-2015 contract year (up to a maximum of 190 days).
The Benefit will be two equal payments to the District-designated HRA with one-half of the Benefit remitted by August of 2015 and one-half by August of 2016. The Benefit shall not be payable, in cash, to the employee as additional wages or compensation.
E. Health Reimbursement Arrangement (HRA).
An HRA is an employer funded “accident or health plan,” that (i) provides individual accounts for reimbursing employees, retirees and their dependents for eligible medical expenses and (ii) permits any unused portion of the account at the end of the year to be carried forward to the next year. Amounts in the account may be used for “qualified medical expenses” (as defined in IRC Section 213(d)) and to reimburse health insurance premiums (including Medicare) or premiums for long term care insurance (subject to indexed IRS limits). Employees are not taxed on employer contributions to the account nor on withdrawals from the account.
If an employee dies, is discharged, or resigns after the Board of Directors has approved the early retirement application but before the end of the contract year, the stipend shall not be paid.
F. Vesting.
The adoption of this voluntary early retirement program shall not vest any right in any employee whether or not the employee is currently eligible for early retirement. The Board shall have the complete discretion to amend or repeal this program at any time and shall not be obligated to provide any stipends for any employee after the date of such amendment or repeal, except to those employees whose early retirement pursuant to this program has commenced prior to the amendment or repeal.
