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Meeting Date:
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3/30/2017 - 6:30 PM
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Category:
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Report of the Committee on Accountability, Finance, and Personnel
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Type:
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Action
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Subject:
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4. Action on a Request to Approve an Early Retirement Window (ERW) for Eligible Employees
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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Early Retirement Analysis PPT Presentation
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File Attachment:
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Background:
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At the request of the Board's Committee on Accountability, Finance and Personnel, the Administration presented information on early retirement options at its February 2017 meeting. This information included benchmark benefits for surrounding school districts and the financial and staffing impact for the following scenarios (effective July 1, 2017):
a. Age 55 with a two-year window/90% eligible sick leave;
b. Modification of the retirement age requirement from 60 to 57 with current benefits intact; and,
c. Modification of the retirement age requirement from 60 to 57 with the curtailment of benefits at 65 years.
The Administration worked closely with the actuarial firm Gabriel Roeder Smith & Company (GRS) to prepare and present the analysis.
After the February presentation, the committee requested additional analysis and that a recommendation be brought back to the committee. The Administration has worked with GRS to complete this directive, and will share a presentation that includes additional scenarios (effective July 1, 2017):
a. Age 55 with a two-year window/70% eligible sick leave; and,
b. Retirement during a three-year window/90% eligible sick leave.
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Fiscal Impact Statement:
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This item does not authorize expenditures. Projected savings for the recommended option would be based on the participation of the eligible employees during the Early Retirement Window (ERW) period. At the 100% participation level, the projected, estimated net savings, based on assumptions on the attached presentation, would be $15.3 million over an eight-year period.
At the 50% participation level, with employee salary and benefits proportionate to the 100% participation level, projected estimated net savings would be $7.65 million over an eight-year period. Any initial costs to implement the ERW would be included during the respective fiscal year for budget planning purposes.
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Implementation and Assessment Plan
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Upon approval by the Board, the Administration will take the necessary steps to implement the recommendation.
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Recommendation:
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Your Committee recommends that the Board approve an Early Retirement Window (ERW) for eligible employees to retire within a three-year period (July 1, 2017 to June 30, 2020) meeting the following requirements:
1. Age 55 years
2. 20 years of service
3. 90% of sick leave (1,044 hours for 10 month employees; 1,080 for 12 month employees).
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Approvals:
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Recommended By:
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Signed By:
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Jacqueline M. Mann, Ph.D. - Board Clerk/Chief Officer
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