The school district offers an early retirement plan for full-time licensed employees.  Full-time licensed employees are licensed employees who are regularly scheduled to work 8 hours per week and who are currently performing their assigned duties within the school district.  A licensed employee is eligible under the early retirement plan when the licensed employee:

The Central City Community School District Early Separation Plan as described in this document has to be approved by the District’s Board of Directors.  As approved, it applies only to Full-time Certified Staff and is effective only until March 15 <insert year>.  This Early Separation Plan does not vest rights in any District employee whether or not the employee is currently eligible for the plan.  This plan replaces any and all early separation and/or retirement policies, plans, and/or programs previously adopted by the District’s Board of Directors and any and all previous policies, plans, and/or programs are hereby revoked.

 

Purpose

The Board of Directors of the Central City Community School District has determined it appropriate to provide an early separation incentive to certified employees of extended tenure who opt to retire from the District before July 1, <insert year>, pursuant to the terms of this Early Separation Plan.

The purpose of this plan is to provide the District’s employees with the option and opportunity for early separation from their employment with the District.  This Early Separation Plan is designed to show the District’s appreciation for the services an employee has rendered to the District, to aid the employee in their transition from public service, and to save District funds through a reduction in staff and/or replacement savings.

 

Plan Duration

This plan will only be offered until March 15, <insert year>.  Any eligible employee who has not committed their participation in the plan prior to March 15, <insert year>, shall forever lose their opportunity to do so.  This plan will not be offered in the <insert year>.

 

I. EMPLOYEE REQUIREMENTS

A.        Determining Eligibility:

An employee is deemed to be eligible for this plan if they have completed at least ten (10) years of full-time contracted service with the Central City Community School District by June 30, <insert year>., and if they are at least fifty-five (55) years of age on or before June 30, <insert year>..

However, no employee will be eligible for this Early Separation Plan if:

1)         they have received an official notice of layoff or termination; or

2)         they are subject to termination pursuant to Iowa Code sections 279.15 or 279.27.

 

B.        Qualifying for Participation in the Plan:

An eligible employee qualifies for participation in this plan upon completion of the following requirements:

1)         submission of a written application to participate in this plan to the Central City Community School District Administrative Office on or before 4:00 p.m. on March 15, <insert year>., addressed to the Board Secretary.  (The Board of Directors reserves the right to waive strict compliance with the application deadline if there are extenuating circumstances unknown to the employee at the time and the Board in its sole discretion decides to waive strict compliance with the application deadline);

2)         submission of a written resignation addressed to the Board of Directors with the written application to participate in the plan; and

3)         the Board’s acceptance of the written resignation.  The resignation will not be binding unless the employee is eligible and appropriately qualifies under the plan and the Board accepts the employee’s written resignation. The Board’s acceptance of the written resignation will be considered final action and shall mean that the employee’s application is accepted and the employee’s contract and employment duties will end after the last day of the current fiscal year.

In all cases, completion of the above requirements is realized by receipt or certification by the Board Secretary.

 

II. BENEFIT

A.        Benefit Calculation

 

Each participating employee shall receive as an early separation benefit an amount equal to $39,200.

 

B.        Benefit Payment

 

Option 1 - Health Reimbursement Arrangement

 

If an employee chooses to continue participating in the District’s health insurance, the employee’s benefit will be deposited in a Health Reimbursement Arrangement (HRA) in four equal installments beginning annually on August 15, <insert year>.August 15, 20<insert year>.22, August 15, <insert year>., August 15, <insert year>.

 

Option 2 - 403(b) Special Pay Plan

 

If an employee chooses to not participate in the District’s health insurance, the employee’s benefit will be deposited into a District‐sponsored 403(b) Special Pay Plan (SPP) in four equal payments beginning annually on August 15, <insert year>., August 15, 20<insert year>.22, August 15, <insert year>., August 15, <insert year>.

 

III. HEALTH INSURANCE

Each participating employee may elect to continue their existing single or family coverage under the District’s health insurance plan as long as they pay the monthly premiums and are permitted to continue coverage by the insurer.  To continue their health insurance coverage, the employee shall pay the monthly premium amount to the District’s Business Office on a date mutually agreed upon prior to the date the District’s premium payment is made to the insurance carrier.  No portion of the premium will be paid by the District.

Nothing herein shall limit the District’s ability to change the terms of its existing health insurance plan.  This plan in no way guarantees that an employee will be provided any certain level of benefits or premiums during the time of the employee’s participation in this plan.

 

IV.       EMPLOYEE RIGHTS

In the event this Early Separation Plan is altered or discontinued, persons who separated from employment with the District under its provisions will continue to receive the benefits in effect and authorized by the Board of Directors at the time the employee’s letter of resignation was accepted.

The adoption of this Early Separation Plan shall not vest any rights in any employee whether or not the employee is currently eligible for early separation.  Furthermore, the District shall not be obligated to provide any plan benefits to any employee after the expiration date of the plan, except to those Early Separation Plan participants whose early separation pursuant to this plan has commenced prior to the expiration date.

 

V.        STATUS OF PARTICIPANTS

An employee who elects to participate in the District’s Early Separation Plan will become a retired employee and will be entitled to all rights and privileges of retired employees under applicable law and the policies of the Central City Community School District Board of Directors.

However, Early Separation Plan participants shall not be eligible to be rehired in any capacity with the Central City Community School District; nor shall the Central City Community School District be required to consider an application for employment from an Early Separation Plan participant; provided however, that, at the sole discretion of the Board of Directors, the District may employ Early Separation Plan participants as temporary substitute employees or as coaches and/or sponsors of extracurricular activities.

Each employee who elects to participate in the District’s Early Separation Plan must specifically agree to hold the District harmless and indemnify it if the participant attempts to submit an application for employment or otherwise attempts to be reemployed with the District.  The participant is not precluded in any way from accepting employment with an employer other than the District after fulfilling the terms of the employee’s <insert year > contract with the District.

The board 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.  Upon adoption of this early retirement plan, licensed employees meeting the eligibility requirements will have to utilize this early retirement plan.

 

 

Legal Reference:  29 U.S.C. §§ 621 et seq..
                                       Iowa Code §§ 97B; 216; 279.46; 509A.13.

Cross Reference:  407.3  Licensed Employee Retirement
                                       413.2  Classified Employee Retirement

Approved:  2/22/10
Reviewed: 8/22/12
Revised: 10/25/17
Reviewed: 3/30/21
Reviewed:4/27/22