Code No. 407.6
SOUTHEAST WEBSTER-GRAND COMMUNITY SCHOOL
PRAIRIE VALLEY COMMUNITY SCHOOL
SOUTHEAST VALLEY SCHOOLS
LICENSED EMPLOYEE EARLY RETIREMENT
The school district may offer an early retirement plan for full-time licensed employees. Full-time (FTE 1 -.8) licensed employees are licensed employees who are regularly scheduled to 38 work 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 prior to the start of the next school year.
· Completes a total of 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 of the year in which the licensed employee wishes to retire. Applications submitted after may be considered at the discretion of the board depending on the circumstances for the late application;
· 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.
Cash Benefit Options
Option 1 – Lump Sum Amount Based on Compensation
The early retirement incentive for each eligible licensed employee approved by the board will be based on the licensed employee compensation in effect the last year of the licensed employee's employment with the school district. The difference between the compensation base and the licensed employee's current salary less supplemental pay or extended contract pay is the lump sum amount of early retirement incentive the licensed employee will receive upon retirement.
Option 2 – Lump Sum Amount
The early retirement incentive for each eligible licensed employee approved by the board will be determined annually.
Option 3 – Percentage of Pay
The early retirement incentive for each eligible licensed employee approved by the board will be based on the licensed employee compensation in effect the last year of the licensed employee's employment with the school district. The employee will receive __ percent of the current year's salary less supplemental pay or extended contract pay. That amount is the lump sum amount of early retirement incentive the licensed employee will receive.
Option 4 – Lump Sum Amount and Percentage of Pay
The early retirement incentive for each eligible licensed employee approved by the board may be a lump sum amount and an additional amount based on the licensed employee compensation in effect the last year of the licensed employee's employment with the school district. As an additional benefit, the employee will receive __ percent of the current year's salary less supplemental pay or extended contract pay.
Continuation of Insurance Benefits
Option 1 – At Employee’s Expense
Upon retirement, the licensed employee is eligible to continue participation in the school district's group insurance plan at the licensed employee's expense by meeting the requirements of the insurer. The employees must pay the monthly premium amount in full to the board secretary prior to the due date of the school district's premium payment to the insurance carrier. IASB Policy Reference Manual IASB Policy Management Console 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.
Option 2 – At School District’s Expense
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. 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.
Option 3 – At School District and Employee’s Expense
Upon retirement, the licensed employee is eligible to continue participation in the school district’s group insurance plan by meeting the requirements of the insurer.
The school district will pay the cost of the single premium at the level it was when the employee retired. The employee is responsible for paying any increase in premium costs. The employee must pay the employee’s share of the premium by paying the monthly premium amount in full to the board secretary prior to the due date of the school district's premium payment to the insurance carrier. 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.
Beneficiary Option
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.
Legal Reference: 29 U.S.C. §§ 621 et seq. Iowa Code §§ 97B; 216; 279.46; 509A.13.
Approved 12-16-15 Reviewed Revised July 20, 2022