The Board of Education of Emmetsburg Community School District realizes the benefits its students and teachers will derive in having a staff with a balance of experienced employees and beginning employees. The District will benefit by having a gradual rotation of employees.
The Emmetsburg Community School District will provide payments as specified in board policy exhibit 407.6E1 to approved licensed employees who apply for voluntary early retirement and meet the eligibility and application requirements for this policy. The final decision on the acceptance of the early retirement application rests solely with the Emmetsburg Community School District Board of Directors.
A. Eligibility Requirements:
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Licensed employee possesses an Iowa Code Chapter 279 employment contract with Emmetsburg Community School District and must be a full-time employee. Full-time licensed employees are licensed employees who work 40 hours per week and who are currently actively performing their assigned duties in the Emmetsburg Community School District.
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Licensed employees have reached age fifty-five (55) or will attain age fifty-five (55) on or before the actual date of retirement, which shall not be later than June 30, 2023, unless otherwise agreed to by parties.
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Licensed employee has completed or will complete at the end of the 2022-23 school year at least fifteen/twenty (15/20) years of consecutive contracted service as a licensed employee in the Emmetsburg Community School District. Consecutive employment must be without any voluntary interruptions of service. Absences due to reductions in force or due to approved leaves will not constitute a voluntary interruption in service, unless the absence or leave exceeds twenty-four (24) consecutive months in length. However, the period of time during which an employee is absent due to a reduction in force or due to an approved leave will not be counted for purposes of determining the minimum length of service required to establish eligibility.
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The licensed employee is not subject to discharge for cause or has not been discharged from employment by the Emmetsburg Community School District, except if due to staff reduction.
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The licensed employee has not previously received early retirement benefits from the Emmetsburg Community School District.
B. Application Requirements.
1. Licensed employees wishing to apply for voluntary early retirement may do so immediately after the Board adopts the policy and must submit the attached application to the Board Secretary with a letter of resignation on or before 3:30 p.m. on December 22, 2022. No late applications will be considered. The Emmetsburg Community School Board of Directors reserves the right to limit the number of approved applications for early retirement. If the Board determines, in its sole and complete discretion, that it will be necessary to limit the number of approved applications the Board will use a process based on the date and time of each individual application for early retirement using the earliest application filed as the starting point and then moving forward chronologically first to last, until the established number to be accepted is reached. If there is a tie between or among employees using the first-come, first-served basis rule because more than the set number of applications are received on the same date and time, the tie will be broken by using School District seniority of employees and the most senior employee(s) will be granted early retirements benefits.
2. The licensed employee must retire by June 30, 2023, unless an alternative retirement date is mutually agreed upon by the parties.
3. An employee’s application for early retirement benefits is not, in itself, a resignation of a contract with the School District nor does it require the Board to accept the application. However, acceptance by the Board of an employee’s application for early retirement will be considered a voluntary resignation and termination of his/her continuing contract. If the Board does not accept the employee’s application, the employee’s contract will continue in effect.
C. Benefits
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Basic Terms
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Early retirement benefits are offered as an inducement to, and consequence of, retirement and are not to be construed as a continuation of salary
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In the event of death of the employee after July 1, of the completion of the retirement fiscal year, but prior to payment of the cash benefit, if any, by the School District, any balance shall be paid to the employee’s designated beneficiary or estate. The District shall not make any cash benefit payment, if any, if the employee dies before July 1, of the completion of the retirement fiscal year, even though the early retirement may have been approved.
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Continuation of Insurance
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As provided by Iowa Code Section 509A.13, the employee retiring under the early retirement program may be eligible to continue participation in the School District’s group insurance plan at the School District’s expense for a single employee policy up to a maximum benefit amount of $10,000 per fiscal year. If the single policy premium in a fiscal year exceeds $10,000, or if the retiree elects family insurance coverage, the retiree employee will be responsible for the difference. An employee who wishes to continue participation in the School District’s group insurance plan must be less than 65 years of age or not yet eligible for Medicare, must meet the requirements of the insurer and must pay the monthly premium amount, if applicable, in full to the board secretary prior to the due date for the School District’s premium payment to the insurer, if any is due.
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More specific information regarding the insurance benefit is outlined in the attached Exhibit.
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Nothing herein shall limit the School District's ability to change the terms of its existing health and major medical insurance plan. This policy in no way guarantees that a participating Employee will be provided any certain level of benefits during the time of the Employee’s/retiree’s participation in the insurance benefits portion of the early retirement program.
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Benefit Payment
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An eligible employee who is approved for early retirement shall receive:
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A total cash benefit of $45,000 payable over a three-year period with $20,000 paid in Year 1, $15,000 paid in Year 2 and $10,000 paid in Year 3.
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Payout of unused sick days available as of June 30, 2022 at a rate of $50.00 per day (payable in July 2023).
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See attached Exhibit for timing of payments.
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Taxes
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Employees are advised to seek independent advice with regard to tax or financial consequences associated with any action taken by them under this plan.
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Review
The Emmetsburg Community School District Board of Directors 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. The Early Retirement Policy will be in effect for the 2022-23 school year only.
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Benefits allowed individuals for a previously approved early retirement application shall continue in effect if the early retirement policy is discontinued by the Emmetsburg Community School District Board of Directors.
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Licensed employees may continue on the School District’s health insurance policy until they reach Medicare eligibility. The cost of the policy will remain with the School District up to a maximum annual amount of $10,000.
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Licensed employees may elect a family policy at the employee’s expense as long as the plan is a continuance of their current plan. The Board of Directors reserves the right to modify the policies, its carrier and benefits administrator offered within the district.
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A licensed employee who elects to participate in the School District’s early retirement program will become a retired employee and will be entitled to all rights and privileges of an employee under applicable law and policies of Emmetsburg Community School District. Licensed employees who elect to participate in the early retirement program shall not seek application for future employment with the Emmetsburg Community School District. However, the District may hire a licensed employee who elects to participate in the early retirement program as a substitute teacher or other eligible position at the discretion of the superintendent. Any benefits not provided by this policy that were previously given during employment are forfeited upon return of employment as a substitute employee.
5.The Board reserves the right to waive any requirement or condition of this policy at its discretion and at any time. Any decision by the Board to waive a requirement or condition which is a part of this policy shall not establish any precedent with regard to any other request for a waiver.
6. This plan shall terminate on June 30, 2023. Notwithstanding the termination of this plan, employees who are granted benefits pursuant to this plan will continue to receive such benefits as set forth herein.
7. The adoption of this Early Retirement Plan shall not vest any right in any employee whether or not the employee is currently eligible for early retirement. The Board shall have the complete discretion to amend or repeal this plan or any provisions thereof at any time with or without notice and shall not be obligated to provide any benefits to any employee after the date of such amendment or repeal, except to those employees whose early retirement pursuant to this plan has commenced prior to amendment or repeal.
8. Should any portion of this policy be in conflict with state or federal rules, regulations or laws, that portion of the policy shall be invalid, and all other portions remain in full force and effect. Any decision by the Board to waive a requirement or condition which is part of this policy shall not establish any precedent with regard to future requests for a waiver.
9. The Board is the final arbiter of all questions of interpretation under this plan, including but not limited to, questions of eligibility or benefit calculations.
Approved 1/22/01 Reviewed 9/16/15 Revised 11/22/22
