1. 2012-2013 Retirement Commitment Incentive
Update:
Retirement Commitment Incentive
Chief of Staff and Compliance
Johnny Giles
May 2, 2013

2. Retirement Commitment Incentive
Initially Offered Oct 2012
What: Voluntary pay incentive for candidates who make early notification (by 15 March 2013) of intent and commitment to retire at the end of the current school year. Incentive increases the earlier candidate makes notification.
Intent: Plan for projected vacancies to ensure earliest hiring actions and prevent sudden classroom/critical certified vacancies in our schools
Includes: Teachers, Counselors, Librarians, Assistant Principals
Eligibility:
Must have 10 years creditable service and at least sixty (60) years of age, OR
Must have twenty-five (25) years of creditable service, regardless of age

3. Retirement Commitment Incentive
Result:
61 certified employees provided early notification to HCS of their intent to retire at the end of the school year
Impact:
District was able to plan for projected vacancies and began the interview / hiring process two months earlier than last year.
Retirement eligible teachers were able to make long-term plans and will receive a cash benefit for notifying HCS in advance
Finance will run a Special Payroll on June 16, 2013 to direct deposit the Incentive to the employees’ accounts.

4. Retirement Commitment Incentive
ARI Reading Coach 1
Art 2
Choral Music
Collaborative Coordinator
Collaborative Secondary
Counselor
CT T&I Prep
Curriculum Specialist
Drivers Education
Early Childhood Special Ed
Elementary (K-6) 19
ESL Teacher
Health
Kindergarten 4
Latin 1
Librarian 6
Math
PE/Health 2
Physical Education 4
Psychometrist
ROTC Instructor
ROTC-Air Force
ROTC-Army
Science
Special Education Collaborative
Special Education Early Childhood
Special Education Gifted
Speech Pathologist
Total: 61 Certified Employees from 34 Schools

6. Backup Slides

7. Retirement Commitment Incentive (continued)
Commitment: Must commit to complete the full current school year with an effective retirement date of June 1, July 1 or August 1, 2013.
Compensation: 6%-10% of base salary (1% base salary times multiplier for earlier notifications). Available to all eligible candidates, even if individual has already reached top step on salary schedule.
Payment: Lump sum in paycheck before the final month of employment*.
Limited opportunity: First 100 applications to Human Resources
Begin taking applications November 1, 2012 (no earlier)
Increased benefits for earlier notification/commitment
Must be Board approved
* NOTE: Does NOT count toward retirement (change from previous briefing after legal review)

8. Retirement Commitment Incentive
EXAMPLE: (Base Salary x 1% x timeliness multiplier)
Notification Date
(On or before)
Base Salary
1% Base
Timeliness Multiplier
Total Benefit
15-Nov-12
$55,000.00
$550 10
$5,500.00
14-Dec-12 9
$4,950.00
15-Jan-13 8
$4,400.00
15-Feb-13 7
$3,850.00
15-Mar-13 6
$3,300.00
After 15-Mar-13
NO BENEFIT
Total Cost: $XXXXXXX (Average: $XXXXXX per employee)