407.4 - Early Retirement

The Board of education of the Dunkerton Community School District agrees to provide a supplemental separation benefit to encourage teachers, counselors, and media specialists to retire early.

 

  1. Determining Eligibility; An employee must meet the following criteria for eligibility:
    1. Application for early retirement begins December 13th of the final contract year (year of retirement) and no later than January 17th..
    2. No more than 5 employee applications will be accepted in any given year.  The board reserves the right to make an exception to this rule.  In case there are more than 5 applicants for early retirement in the same year, seniority will be used to determine selection.
    3. Applicant must be at least 55 years of age at the time of retirement.
    4. Has completed a minimum of 9 years continuous service to the Dunkerton School District and is currently employed at the time the voluntary early retirement request is made.  A leave of absence may interrupt continuous service without affecting the continuous years of service rule.  Professional and military leave will qualify toward continuous service.
    5. Has been actively employed during the school year in which the request is being made.
    6. Has not been discharged for cause or notified that their contract is under consideration of termination or reduction.
    7. Is not receiving payments from the district’s long-term disability insurance program.
  2. Application for participation in the Early Retirement Program:
    1. Application for participation in the Early Retirement Program must be made in writing, presented with a resignation of the employee’s position beginning December 13th and no later than January 17th of the current contract year.  The Board of Education reserves the right to waive strict compliance with the early retirement program, the application process, and the deadline.  If there are extenuating circumstances the board has sole discretion and may decide to eliminate the early retirement program or waive strict compliance with the application process and deadline.
    2. The employee’s resignation will not be binding unless the employee also qualifies for the Retirement Program and has intended to participate in the Retirement Program.
  3. Benefits Formula:  The benefits rate for eligible participants are as follows:
    1. The qualified employee will receive $40,000.00 in a health reimbursement arrangement (HRA) to cover individual insurance costs provided the employee stays on the district’s medical insurance.

AND

The qualified employee will receive an amount of $50.00 per day for every sick day that is left over at the end of the school year of which he/she retires with a maximum of 135 days.  This will be placed in trust to further cover individual insurance costs as described above.

OR

    1. The qualified employee will receive $40,000.00 in the form of a TSA under the District’s 403B plan if the retiree waives off the district’s medical insurance.

AND

The qualified employee will receive an amount of $50.00 per day for every sick day that is left over at the end of the school year of which he/she retires with a maximum of 135 days.  This will be placed in the form of a TSA under the District’s 403B plan

  1. Schedule of Payment Options:
    1.  Payment of the early retirement benefit may be in installment. The payment  will be made on or before September 30 of the year of retirement.
  2. Continuation of Health Insurance;  Conditions of employee eligibility, payment, and participation:
    1. Employee must have been covered by the District’s major medical insurance plan during the contract year preceding retirement.
    2. Eligible employee may continue to participate in the District’s major medical insurance plan until the age of 65 at their own expense; or they are no longer permitted to continue coverage by the insurer, whichever comes first.  The District shall not be obligated to incur the cost of any part of the premium, or expenses, or additional coverage
    3. If the participating employee was receiving family coverage under the District’s major medical insurance plan or a member of the employee’s family was covered under an additional policy; that coverage may continue until the participant’s age of 65 at their own expense; or they are no longer permitted to continue coverage by the insurer.  The District shall not be obligated to pay any part of the premium or expenses of the family or additional coverage.

 

EMPLOYEE RIGHTS

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

The adoption of this Early Retirement Program shall not vest any rights in any employee whether or not the employee is currently eligible for early retirement.  The Board of Education shall have complete discretion to review, amend, or repeal this policy at the end of each fiscal year, when in the judgment of the Board of Education, the District no longer realizes economic benefits from this policy or otherwise determines that the policy is not in the best interests of the District.  Furthermore, the District shall not be obligated to provide any benefits to any employee after the date of such amendment or repeal, except to those employees whose early retirement pursuant to this policy has commenced prior to the amendment or repeal.  

 

STATUS OF PARTICIPANTS

An employee who elects to participate in the Districts Early Retirement Program 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 Dunkerton School District Board of Education.  At the sole discretion of the Board of Education, the district may employ persons who elected to participate in the Early Separation Program as temporary substitute employees.

In the event the employee elects to participate in the District’s Early Retirement Program has previously signed a contract for the next school year, said contract will be null and void.

 

BENEFIT OPTIONS

Employees who have experienced a forced reduction from 1 FTE, but have served fifteen (15) years of continuous service at a 1 FTE rate are eligible for benefits based on a 1 FTE rate, and not the reduced FTE.

 

 

Approved: March 1996.
Reviewed: , January 2011, January 2014, January 2017
Revised August 2006, August 2009, November 2105, November 2017, October 2018, May 2020, March 2021, April 2021, December 2022, November 2023