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 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:
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Is at least age 55 prior to the start of the next school year.
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Completes a total of 15 years of service as a full-time licensed employee to the school district;
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Submits an application to the superintendent for participation in the plan on or before Wednesday of the first week of February of the year in which the licensed employee wishes to retire. Applications submitted after Wednesday of the first week of February may be considered at the discretion of the board depending on the circumstances for the late application;
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Submits a written resignation. The resignation may be contingent upon approval by the board of participation in the voluntary early retirement plan; and,
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Receives board approval of the licensed employee's application for participation in the early retirement plan, of the licensed employee's resignation and of the disbursement of early retirement incentive to the licensed employee.
Approval by the board of the licensed employee's early retirement application shall constitute a voluntary resignation. Approval by the board of the licensed employee's early retirement application will also make the licensed employee eligible for disbursement of the early retirement incentive the sooner of July 1 following the licensed employee's approval for early retirement or a date mutually agreed upon by the school district and the licensed employee. Failure of the board to approve the licensed employee's early retirement application will make the licensed employee's current contract with the board continue in full force and effect.
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Employees eligible to retire in accordance with the accompanying criteria will be provided: $6000/year for five years. If the early retiree does not choose to remain on the schools health insurance policy the retirement incentive will be paid into a 403b. If the early retiree chooses to remain on the school's health insurance policy the retirement incentive will be paid into a Health Retirement Account (HRA). Early Retiree Not Remaining on School Health Insurance: $6000 may be withdrawn after deposit in the 403.b thus allowing the staff member a substantial tax savings. In the event of the death of the retiring employee prior to completion of the installment payments provided for in this section, the remaining installments shall be paid to the estate, heirs, or successors in interest of such deceased employee on the same basis to which the retiring employee would have been entitled had he or she survived. Any deductions required by State or Federal Laws shall be made prior to payment of the net amount due. In the event of the death of the licensed employee prior to payment of the early retirement incentive but after the licensed employee's retirement has begun, the early retirement incentive will be paid to the designated beneficiary in one lump sum payment. In the event no beneficiary is designated, the incentive will be paid to the licensed employee's estate in one lump sum payment. Early Retiree Remaining on School Health Insurance: There are no beneficiaries for the HRA. A surviving spouse or qualifying dependent will still be able to access funds for eligible medical expenses and premiums. If the participant does not have a surviving spouse or qualifying dependent, the executor of their estate or trustee can use the remaining funds to reimburse eligible medical expenses and premiums not previously submitted on the participant’s behalf. If an account balance still remains after 12 months with no plan activity, the balance will forfeit back to the employer. |
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.
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: 2/13/2023 Reviewed: __________ Revised: ___________