Sterling Community Unit School District #5
5.212 Personnel
Professional Personnel - Early Retirement Program
The Board of Education establishes an Early Retirement Program that provides several options to the potential retiree. The purposes and conditions of the program are outlined as follows:
A. Purpose
1. To enable eligible certified staff to retire at an earlier age if they so desire.
2. To partially offset loss in income for certified staff members who elect to retire at an earlier age.
3. To create new certified positions during periods of restricted opportunity for the employment of new staff.
4. To provide financial savings to the School District by encouraging retirement of certified staff at the upper range of the School District's salary schedule.
5. While recognizing the significant value of an experienced staff, the Board desires to encourage an appropriate level of staff turnover.
B. Options:
1. State Retirement Program: The Board of Education will acknowledge State of Illinois retirement programs and apply them on an individual application basis.
2. Board of Education Early Retirement Programs: A local Board of Education may develop its own plan(s) in addition to the mandated state program. The Unit #5 Board of Education provides the following programs:
a. Plan A:
i. Eligibility
(a) A certified employee must not be qualified for the state's early retirement program which requires a Board contribution to the retirement system.
(b) Written notification from qualified applicants must be made to the Superintendent indicating his/her desire to participate in Plan A of the Board's Early Retirement Program.
ii. Contract:
(a) Selected applicants are required to serve for 20 days per year as a substitute teacher. However, alternative activities, with Board approval, may be designated by the Superintendent.
(b) The annual compensation shall be $5,000 per year. The payment will be made for a maximum of five consecutive years, except that no payment will be made after the school year in which the employee reaches 65 years of age. Payments for the services shall be made between July 1 and June 30 of the School District's fiscal year in the manner specified in the individual retiree's contract.
iii. Approval Procedures:
(a) The Board of Education will consider the costs and savings of the State's and Board's Early Retirement Programs in determining the number, if any, of Board policy applicants to be approved.
(b) The Board of Education will notify all applicants whether their application has been approved or disapproved.
b. Plan B - DELETED, AUGUST 2000
c. Plan C:
i. Eligibility:
(a) A certificated employee must be at least 55 years of age and no older than 64 years of age by June 30 of the retirement year. The certificated employee must not be qualified for the state's early retirement program which requires a Board contribution to the retirement system.
(b) Written notification from qualified applicants must be made to the Superintendent indicating his/her desire to participate in the Board's Early Retirement Program.
ii. Contract:
(a) Selected participants will not be required to perform any services for Unit #5.
(b) Selected certificated employees will be paid 20% of their previous year's total salary minus any salary increase for the current school year. In addition, the certificated employee will be paid an annual stipend of fifteen hundred dollars ($1500) which may or may not be applied to district health insurance premiums by the employee for a maximum period of five years, except that no payment will be made after the school year in which the employee attains age 65. Payment of this stipend shall be made between July 1 and June 30 of the District's fiscal year in the manner specified in the individual retiree's contract.
iii. Approval Procedures:
d. Other Plans:
i. Plan D - The certificated employee may negotiate his/her own early retirement plan with the district.
ii. Plan E - Two-Year Early Retirement Option - Refer to the negotiated agreement with the SEA for eligibility, application, benefits, and information regarding a change in ERO status.
C. Death Provisions: Upon the death of the individual entering into an early retirement contract with Community Unit School District #5, the District will pay the unpaid portion of that fiscal year's payment to the contractor's designated beneficiary or beneficiaries including the estate of the contractor as he/she shall appoint. The designation of such beneficiary shall be made in writing and submitted to the Superintendent contemporaneously with the contractor's written notice of election to participate in such early retirement program. Such written designation of beneficiary shall govern and control the payment of any unexpired portion of funds unless otherwise subsequently amended in writing and refiled by the contractor with the Superintendent.
D. Fringe Benefits: Participants will be allowed the opportunity to continue coverage in the School District's health insurance plan for which they are eligible so long as the insurance carrier writing such coverage continues to approve participation by the retiree. The retiree will be responsible for the full amount of the premium applicable to the particular coverage, and such amount shall be deducted from the early retirement compensation.
E. Counseling: Provisions shall be made to insure comprehensive counseling for any candidate wishing to take advantage of the early retirement program and will specifically counsel all candidates in financial and re-employment implications and rights.
F. Right to Cancel: Any employee who has entered into the early retirement program may elect to discontinue participation in the program upon giving notice at least thirty days prior to the end of the School District's fiscal year. However, it is expressly understood and agreed that employees electing involvement in the program shall not be eligible to return to regular teaching employment in the School District nor shall such person opting for the early retirement program be considered an employee of the School District.
G. Discontinuance of the Program: Notwithstanding any of the foregoing provisions, the Board reserves the right to terminate the early retirement program at any time with respect to persons who are not participating in the retirement program in the school year when the termination becomes effective. Employees already participating in said early retirement program or those who during the year have been approved in the program prior to the Board's termination will be allowed to continue despite the termination of the program. Approved applications shall become effective July 1 of the same year. Applications will not be considered except during the stated effective application period.
Adopted: February 14, 1985
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