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Retirement/Resignation

Retirement/Resignation . Incentive Plan. Plan Design. 85% of Employee “Base” Pay for 2005-06 Retire or Resign by 6-30-06 or 8-31-06 Payments to 403(b) Payments over 5 Years Current Contract Sick Day Severance also over Five Years. Advantages to Employee.

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Retirement/Resignation

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  1. Retirement/Resignation Incentive Plan

  2. Plan Design • 85% of Employee “Base” Pay for 2005-06 • Retire or Resign by 6-30-06 or 8-31-06 • Payments to 403(b) • Payments over 5 Years • Current Contract Sick Day Severance also over Five Years

  3. Advantages to Employee • Provides Assistance in making STRS Medical Insurance Payment • Supplements Retirement Payment • Allows Tax Deferred Payment

  4. Advantages to Huron City Schools • Controls Timing of Retirements • Positive Cash Flow to the District EVERY YEAR • Saves Money for the District

  5. Participants • 9 Teachers • 1 Administrator

  6. Annual Savings • Assumes: New Hires will be at BA 3 New Hires will progress through BA Scale All new Hires will be at MA 8 in FY 12

  7. Why FY 12 is Critical • HB 66 begins the phase out of reimbursement for lost Personal Property Taxes • Huron will lose $200,000 that year in Personal Property Tax Revenue • This helps replace the loss without going to voters

  8. Problems with Normal Attrition • Average less than two per year • Teachers are staying longer • Negative Cash flow consequence in year following retirement • We do not control the process

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