The District may offer an early retirement plan for full‐time employees. Full‐time District employees are employees who work twelve months per year and at least thirty (30) hours per week and who are currently performing their assigned duties within the District. An employee is eligible under the early retirement plan when the employee:
- Is 55 on or before the start of the school year following the school year in which the employee wishes to retire;
- Completes a total of 15 years of service as a full‐time employee to the District;
- Submits an application to the Board Secretary for participation in the plan on or before November 15, of the school year in which the employee wishes to retire. Applications submitted after November 15 may be considered at the discretion of the Board depending on the circumstances for the late application;
- Submits a written resignation. The resignation may be contingent upon approval by the Board of participation in the voluntary early retirement plan and must state the last date of work which is the retirement date; and
- Receives Board approval of the employee’s application for participation in the plan, of the employee’s resignation and for disbursement of early retirement benefits to the employee.
Approval by the Board of the employee’s early retirement application shall constitute a voluntary resignation. Approval by the Board of the employee’s early retirement application shall also make the employee eligible for disbursement of the early retirement incentive. Failure of the Board to approve the employee’s retirement application shall constitute automatic withdrawal of the employee’s resignation.
The early retirement incentive: 45% of the employee’s current year contracted salary excluding overtime pay, supplemental pay or extended contract pay. The incentive shall be paid to a tax‐ sheltered annuity account on behalf of the retiree in annual payments not to exceed three (3) years, beginning the first month of retirement and ending no later than the month when the retiree attains 65 years of age. The number of payments is based solely on the number of years until the person reaches age 65. If the retiree retires less than three (3) years from his/her 65th birthday, the incentive will be allocated over the number of years to age 65.
The total retirement benefit as calculated in the paragraph above for all licensed and classified employees who wish to retire in one year will not exceed $100,000. This maximum may be waived by the Board for a single year upon their approval. If the total retirement benefit for all employees exceeds $100,000, the retirement benefit will be prorated based upon the benefit the classified employee was to receive at 45% of his/her salary.
Upon notification of the amount of the retirement benefit after prorating, the classified employee has the right to withdraw their application for early retirement by November 30 of the school year application for retirement is made. Upon retirement, the employee retiree if eligible may continue participation in the District’s group medical insurance plan entirely at the retiree’s expense by meeting the requirements of the insurer. The employees must pay the monthly premium amount in full to the Board Secretary prior to the due date of the District’s premium payment to the insurance carrier.
This insurance coverage will cease when the licensed employee/retiree reaches age sixty‐five, secures other employment in which the employer provides insurance coverage, or dies. If dependent insurance coverage is carried, that coverage may continue beyond the employee’s/retiree’s sixty‐fifth birthday for a period of up to five years or until the dependent reaches age sixty‐five. In the event of the death of the retiree before all incentive payments are made, the retiree’s tax‐ sheltered annuity will receive the remaining incentive in a 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.
The Board has complete discretion to offer or not to offer an early retirement plan for employees. The Board may discontinue the District’s early retirement plan at any time.
29 U.S.C. §§ 621 et seq. (2012).
Iowa Code §§ 97B; 216; 279.46; 509A.13.
1978 Op. Att’y Gen. 247.
1974 Op. Att’y Gen. 11, 322.
407.3 Licensed Employee Retirement
Approved: June 10, 1986
Reviewed: May 27, 2014
Revised: February 26, 2018