This question came via email, and I want to share it here in case others are wondering the same thing.
Question: I read the proposed changes with our new contract. I am confused on this article for early retirement. Does this change apply more to newer folks? In our current contract it says if you work until 57 the district contributes to the health care. I assume that is the benefit amount, like $350? Does this still hold true? Please clarify.
Answer: After 2015, the district will pay only a health benefit of $350/month to early retirees (until they are eligible for medicare). Right now, the district also pays compensation of $8000 per year, but that ceases after 2015. In 2025, they will stop paying the health benefit, too.
The district’s rationale is that they would prefer to put their money toward people who are currently teaching their students. They also say that they want to keep their experienced teachers teaching instead of encouraging them to leave the profession early.
So, if you can put in your notice to retire by the end of 2014-15 (that is, you will be between 57 and 65 and have 15 years service with the district), you can get both the health benefit and the $8000/year until you reach medicare age. If you retire after that but before 2025, you will get only the health benefit. After 2025, there will be no early retirement option (now called a Resignation Incentive rather than Early Retirement).
Question: I read the proposed changes with our new contract. I am confused on this article for early retirement. Does this change apply more to newer folks? In our current contract it says if you work until 57 the district contributes to the health care. I assume that is the benefit amount, like $350? Does this still hold true? Please clarify.
Answer: After 2015, the district will pay only a health benefit of $350/month to early retirees (until they are eligible for medicare). Right now, the district also pays compensation of $8000 per year, but that ceases after 2015. In 2025, they will stop paying the health benefit, too.
The district’s rationale is that they would prefer to put their money toward people who are currently teaching their students. They also say that they want to keep their experienced teachers teaching instead of encouraging them to leave the profession early.
So, if you can put in your notice to retire by the end of 2014-15 (that is, you will be between 57 and 65 and have 15 years service with the district), you can get both the health benefit and the $8000/year until you reach medicare age. If you retire after that but before 2025, you will get only the health benefit. After 2025, there will be no early retirement option (now called a Resignation Incentive rather than Early Retirement).
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