Early Retirement Package Offers Incentives
The West Des Moines Community Schools Board of Education has approved an early retirement incentive package for this year that includes a one-time lump sum payment $18,000.
The amount is the approximate equivalent of three years of insurance premiums at the district’s current established rate.
The incentive will be offered to those eligible employees with an effective retirement date on or before June 30, 2014. Nearly 200 employees will be eligible for the package. Other eligibility guidelines include:
- The employee must have worked a minimum of thirty (30) hours per week, or seventy percent (70%) contract, each of the last ten (10) full years of service.
- A year of service refers to a school year. Thus, in order to count as a school year, the employee must be employed by the first student contact day in order for that year to count toward a full year of service.
- The employee must have a minimum of ten (10) full years of continuous employment in the district.
- The employee must have obtained the age of fifty-five (55) of June 30, 2014.
- An employee terminated for just cause, or receiving payments or benefits from or on behalf of the District that are not tied to the performance of current duties, is not eligible.
- An employee is eligible to participate in this Plan only at the end of the current school year (certified employees or nine month employees) or June 30th (all other employees).
- In order to be eligible to receive a tax-sheltered annuity benefit under this Plan, the employee must have established an account under the tax-sheltered annuity plan established and maintained by the District no later than November 1 of the calendar year in which the employee’s retirement takes effect.
More information will be provided to staff members about the program at the end of October and they may sign up in late November. Please see the plan for further information:
The lump sum payment is not part of the 2014-15 early retirement plan, which was approved by the School Board on Aug. 26.
The incentive package is being offered as a cost savings effort. The savings gained through attrition will allow the district to better contain expenditures. The savings are recognized in the general fund – from which the majority of education programing and staff salaries are paid. The district’s management fund is used to pay early retirement benefits. Please see the Overview of Funds for more information on district funds.