Code No. 407.3
LICENSED EMPLOYEE RETIREMENT
The Board of Education of the Denison 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 and can assist employees in long-term planning for health care. It is the intent of the District to provide a means whereby employees can continue to have health care coverage after retirement and prior to their eligibility for social security and Medicare benefits.
The Denison Community School District will assist in providing for insurance to full-time 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 Denison Community School District Board of Directors and this policy will be in effect for the 2020-2021 school year only.
A. Eligibility Requirements:
1. Licensed employee possesses an employment contract with the Denison Community School District.
2. Licensed employee has reached age fifty-five (55) or will attain fifty-five (55) on or before July 1 of the year the application for early retirement is submitted.
3. Licensed employee has completed or will complete the end of the 2020-2021 school year at least twenty (20) years of contracted service in the Denison Community School District.
4. The licensed employee is not subject to discharge for cause or has not been discharged from employment by the Denison Community School District.
B. Application Requirement:
1. Licensed employees wishing to apply for voluntary early retirement must submit the attached application to the Superintendent with a letter of resignation on or before February 1, 2021. Applications submitted after February 1, 2021, may be considered at the discretion of the Board depending on circumstances for the late application. The Denison Community School Board of Directors reserves the right to limit the number of approved applications for early retirement. If the Board determines that it will be necessary to limit the number of approved applications they 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. The board will have complete discretion to determine the number of applications that will be approved.
2. The licensed employee must retire by June 30th of the same year as the February 1, 2021 date above.
3. Approval of the application for voluntary early retirement constitutes termination of the licensed employee contract. Non-approval of the application for voluntary early retirement will void the letter of resignation that accompanied the application.
4. The licensed employee must apply for a retirement allowance under the IPERS plan or local teacher pension plan.
5. Approval by the Board of the licensed employee voluntary early retirement application shall constitute a voluntary resignation. Approval by the Board of the application for voluntary early retirement shall also make the licensed employee eligible for early retirement incentives as of July 1 of the same year as the February 1, 2021 date above.
C. Medical Insurance Benefit:
1. Upon voluntary early retirement, the licensed employee shall be eligible to continue participation in the Denison Community School District group insurance plan by meeting the requirements of the insurer.
2. Benefits payable by the District are only payable if consistent with the rules and regulations and/or other requirements of the District insurance company in force at the time of application for coverage. If continued coverage is not permitted by the District insurance carrier, all benefits will cease.
3. An employee who applies for early retirement prior to February 1, 2021 and who is granted early retirement benefits for 2021, shall be entitled to payment of a single premium for health insurance on a progressive schedule based on years of experience within the Denison Community School District. The following table will be used for calculation of benefits. The formula for calculation shall be number of unused sick leave days times the amount allowed per day. This amount shall be applied on a monthly basis toward the coverage of the individual health insurance provided by the District insurance carrier. The maximum accumulation of sick leave days to cap the amount of payment is 125 days.
Years of Experience:
20-24 years - Amount Paid/Unused Sick Leave is $2.00
25-29 years - Amount Paid/Unused Sick Leave is $2.50
30 years or more - Amount Paid/Unused Sick Leave is $3.00
4. The licensed employee will be responsible for arranging a monthly payment schedule for their portion of the medical insurance premium and the cost of the additional premium if they wish to include their dependents. The payment schedule will be arranged with the Denison Community School District business office one month prior to the due date of the school district premium payment to the insurance carrier. In most cases the retiree will have to pay their portion of the group medical insurance premium on an after-tax basis.
5. Nothing herein shall limit the Denison Community School District's ability to change the terms of its existing medical insurance coverage, and this policy in no way guarantees a participating employee any certain level of benefits during the employee participating in the insurance benefits portion of the early retirement plan.
6. This insurance coverage shall cease when the licensed employee/retiree reaches the age for Medicare eligibility, secures other employment in which the employer provides insurance coverage, or dies. If dependent insurance coverage is carried at the time of the employee/retiree sixty-fifth birthday, that coverage may be continued through COBRA (Consolidated Omnibus Budget Reconciliation Act) for a set number of months according the law; or the employee/retiree may apply for the Retiree Comprehensive Medical Insurance and include his/her dependents.
1. The Denison 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 early retirement plan at any time.
2. Benefits allowed individuals for a previously approved early retirement application shall continue in effect if the early retirement policy is discontinued by the Denison Community School District Board of Directors.
3. The Denison Board of Directors reserves the right to modify without warning or notice the early retirement plan incentive benefits and maintains the right to change the group insurance carrier and benefits administrator.
4. A licensed employee who elects to participate in the district 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 Denison Community Schools. Licensed employees who elect to participate in the early retirement program shall not be eligible to be rehired in any capacity with the Denison Community School District nor shall the District be required to accept an application for employment from a licensed employee who elects to participate in the early retirement program.
Exception to #4: The District may hire a licensed employee who elects to participate in the early retirement program as a substitute teacher or in dire situations at the discretion of the superintendent.
Date Board Updated/Reviewed: 12/21/2020
Legal Reference: Iowa Code §§ 97B; 216; 279.46.
281 I.A.C. 21.