1. Employment of Retirees Friday, July 31, 2009

2. Re-employment Changes Effective October 1, 2009 • Session Law 2007-326/HB 956 allows a “retired teacher” to be employed exempt from the cap and expires September 30, 2009. • If a retiree is hired “Exempt” from the cap in August and the sunset is not extended beyond October 1, 2009, then the retiree and LEA are required to review the retiree status and make the necessary employment changes: • Revert to subject to the cap status, • Resign or • Come out of retirement to work full-time

5. Anticipated Process for 2009-10 • Re-employ retirees “Exempt” from the cap from beginning of school through September 30, 2009. • Change status to re-employed “Subject” to the cap from October 1 through the last workday prior to the Winter break. • In order to document a break in service and not continuous service in the same position for 6 consecutive months or more, we will process a separation of employment effective the last workday prior to the Winter break. • Re-employ retirees “Subject” to the cap from January 4, 2010 through the last workday of the 2009-10 school year.

6. Anticipated Process continued • By September 10, 2009, the Retirement System Division must be notified of the change in status of the retiree so that health insurance coverage can be changed from LEA provided to Retirement Plan provided. • New State Health Plan Retiree Group Enrollment/Change Form, Form HM • Letter from the employer (GCS) stating that we will no longer pay for the retiree’s health insurance.

7. Anticipated Process continued • Retiree will receive 3 letters of employment and 2 Interim contracts for the 2009-10 school year. • Letter of employment indicating Exempt of the cap from beginning of school year until September 30. • Letter of employment indicating Subject to the cap from October 1 until the last workday prior to the Winter Break. • Letter of employment indicating Subject to the cap from January 4 until the last workday of the school year. • Interim contract from the beginning of the school year until the last workday prior to the Winter Break. • Interim contract from January 4 until the last workday of the school year.

8. Retirement Earnings Cap • The cap is either half of your earnings from the 12 months preceding your retirement (excluding any lump sum payouts for leave or longevity) or $28,080.00, whichever is greater. The latter amount is adjusted each January to compensate for increases in the cost of living, as indicated by the national consumer price index. • This is the amount that you can earn while working “Subject” to the cap during a calendar year.

9. Salary and Benefits • While “Exempt” from the cap. • Paid on the Retiree Teacher salary schedule which is less than the regular teacher salary schedule. • Full benefits including health insurance, annual leave, sick leave, personal leave, and longevity. • While “Subject” to the cap. • Paid on the Regular Teacher salary schedule. • No benefits. • Health Insurance through Retirement System • No holiday pay. • No annual leave • No sick leave • No personal leave • No Longevity

10. Salary and Benefits continued • August and September paychecks will be based on “Exempt” status and Retiree Teacher salary schedule. • Paid out for unused annual leave and *pro-rated longevity based on the salary when terminating “Exempt” status. * Pending legislation may eliminate longevity payment for 2009-10. • Paid only for days worked once status is changed to “Subject” to the cap.

11. Thank You • Thank you for attending this important information session. • Shirley Morrison, Interim Chief HR Officer • morriss@gcsnc.com (336) 370-8341 • Alison Yates, Director of Staffing • yatesa@gcsnc.com(336) 370-8094 • Stephen Foster, Executive Director-HR Operations • fosters@gcsnc.com(336) 378-8822 • Patty Kinkade, Director of Benefits • kinkadp@gcsnc.com(336) 370-8092 • Steve Friddle, Director of Payroll • friddls@gcsnc.com(336) 370-8164