Jordan School District
Statement of . . .
P O L I C Y

Number: DP319 NEG
Effective: 6/27/69
Revision: 9/8/09


SUBJECT: Retirement—Licensed

THIS POLICY ONLY APPLIES TO EMPLOYEES WHO HAVE RETIRED PRIOR TO THE 2006-07 CONTRACT YEAR.
  1. Board Policy
    It is the intent of the Board to comply with the Age Discrimination in Employment Amendments of 1986 (P.L. No. 99-592).  An employee's age shall not be a factor in determining separation from employment.
  2. Administration Policy
    The District Administration shall administer this policy for employees who retire from the District under the provisions of the Utah State Retirement Act in accordance with the following guidelines:
    Guidelines
    1. Notification of intent to retire
      1. Employees who plan to retire are encouraged to provide appropriate notice to the Human Resources Department to facilitate an appropriate replacement for the position being vacated.
      2. Employees qualifying for the early retirement provisions of the Utah State Retirement Act (Reference: Section 6-2-28) should give appropriate notification to the District and are encouraged to retire at the end of the year covered by the current contract.
      3. A request for early retirement may be initiated by the employee or the Administration.
      4. The Administrator of Human Resources shall provide assistance to retiring District employees in making written application for retirement benefits to the retirement office.
    2. Sick and personal leave bonus
      Eligible employees will be paid for unused sick, personal leave days, and alternative leave days at the time of retirement based on 25 percent of the employee's current lane and step using the standard 184-day contract (C salary schedule).
      1. Total eligible days will be computed at the rate of one (1) day per basic contract month from the date of continuous employment in the District; i.e., 9 days per year for 9-month employees, 11 days per year for 11-month employees, and 12 days per year for 12-month employees.
      2. Sick days used, including sick bank days used, during the above period of time will be subtracted from the total possible accumulation.  Emergency days used between July 1, 1993 and July 1, 1997, are also subtracted from the total accumulation.
      3. The maximum benefit is 180 days for 9-month employees, 220 days for 11-month employees, and 240 days for 12-month employees.
      4. Additional days will be added to this maximum benefit at the rate of two (2) days for each year that no more than one (1) day of sick leave was used, including days deducted for sick leave bank.
      5. Additional days will be added to this maximum benefit according to Policies DP370 NEG– Alternative Leave Day, Certificated, and DP335 NEG–Personal Leave, Certificated.
      6. Retirees with 25 years of service with the Utah State Retirement System have the option of authorizing the District to use the sick and personal leave bonus and the $75 per year service award to purchase additional service credit for the employee through the State Retirement System.  Compensation used to purchase service credit is not reported as income to the employee.  (See Senate Bill 34, passed by the State Legislature in 1995.)
        Note: This formula for retirement benefit has no relationship to the amount of available eligible sick leave days shown on the Time and Attendance Report or on the employee's check stub.
    3. Employees who qualify for retirement under the provisions of the Utah State Retirement System will be paid $75 for each year of service in Jordan School District at the time they retire.
    4. Insurance benefits for retirees
      1. Health and life insurance
        1. The Board shall pay the premium for group health and life insurance benefits for full-time employees (7 or 8 hours per day).
        2. Employees who work fewer than 4 hours per day are not eligible for insurance benefits.
        3. The duration of insurance benefits following retirement will be based on total years of full-time service in Jordan School District.  Years of service will be calculated on full-time equivalents; e.g., 2 years of half-time service equal 1 year of full-time service.
        4. Beginning at the date of retirement, insurance benefits (health and life) shall be maintained according to the schedule below.  The effective date of the health and accident retirement schedule is the first day of the month following the retirement date.
          Equivalent Full-time Years Insurance Coverage
          10 3 years (36 months)
          15 3.5 years (42 months)
          20 4 years (48 months)
          25 5 years (60 months)
          30 6 years (72 months)
          35 7 years (84 months)
        5. Benefits for part-time certificated employees (fewer than 7 hours per day) shall be based on full-time equivalent (FTE) years of service determined by the hours worked per day times the years of service divided by 7.
          Example for calculating FTE for a part-time employee who worked 4.5 hours per day for 15 years, 6 hours per day for 5 years, and 7 hours per day for 5 years:
          4.5 x 15 = 67.5
          6.0 x 5 = 30.0
          7.0 x 5 = 35.0
          132.5 divided by 7 = 18.93 FTE years.
          Note: partial years are not rounded.           
        6. Employees who retire at the end of the contract year shall be covered under their regular contract insurance plan through Aug. 31.  Retirement insurance benefits shall commence on Sept. 1 and continue for the number of years indicated by the schedule in item d. above.
      2. District insurance benefits for retirees covered under Medicare
        Three months before the retiree becomes eligible for Medicare coverage, an assessment will be made to determine the number of months of District insurance eligibility the retiree will have remaining when the retiree transfers from the District's group plan to Medicare.  The following two options are available:
        Option 1:  Enroll in the District group supplemental insurance plan for the remaining months of eligibility and the dependents, if any, will be offered COBRA.
        Option 2:  Waive supplemental insurance.  The number of remaining eligible months will include those months waived (i.e., spouse is still an active employee).
        EXAMPLES of Options 1 and 2:
        Option 1: 10 eligible months = supplemental insurance
        Option 2: 10 eligible months = waive 6 months, enroll 4 months
      3. Insurance benefits for retirees enrolled in COBRA
        Continuation of coverage under COBRA shall run concurrently with the medical coverage provided under this policy.  Dependents will be offered COBRA at the time of group coverage loss.
      4. Continuing insurance benefits after eligibility has expired
        1. Retirees who are not eligible for Medicare and who have exhausted their District insurance benefits may purchase insurance through the District's group insurance program.
          (1) The premium will be set at 110% of the current group rate premium.
          (2) The premium will be reassessed every year and shall be adjusted to reflect group rate premiums.
          (3) Dependents will be offered COBRA at the time of group coverage loss.
      5. All District insurance benefits terminate at the time of the retiree's death.
  3. Post Retirement
    If an employee has retired under the Utah State Retirement Act and desires to be rehired, they must meet the provisions of Title 49 of the Utah Code, effective March 16, 2000:
    1. A person who has previously retired from one of the State Retirement Systems and returns to work full-time for the same employer within six months of retirement shall (a) cancel the retirement benefit and return to membership in the retirement system and (b) accrue additional service credit toward a future retirement.  A retired employee under age 65 who returns to work less than full-time within six months of retiring is subject to an earnings limitation.
    2. A person who retires and returns to work as in (A) above after six months from the date of retirement may keep the retirement benefit as well as the salary.  In this case, a person rehired after six months of retirement shall also have a contribution to a URS defined contribution (DC) plan made for them in the same amount as the employer contributes for similar positions.
    3. Individuals whose retirement exceeds six months must make application to Jordan School District and they will then be placed on the candidate list for potential openings.
    4. The guidelines that are used to determine the salary placement for work experience outside Jordan School District will be used to determine salary placement for all employees who have retired and are then rehired. 
    5. Insurance benefits for a person who retires and returns to work after six months will run concurrent with the benefits earned through retirement.
    6. Employees who have retired and are then rehired after six months must serve one year as a provisional employee and all policies regarding provisional status must be followed.
    7. Retired employees who are rehired are subject to the provisions of the Utah State Retirement Act, and are, therefore, ineligible to earn a second early retirement from Jordan School District.

 


These policies have been developed and approved by the Jordan School District Board of Education for exclusive use within Jordan School District. Any use by a person or organization outside of Jordan School District is not authorized by the school district. Jordan School District bears no responsibility for such unauthorized use or adaptation of the policies of Jordan School District. Any party copying or revising these policies for its own use does so at its own risk and responsibility as to applicability and legal sufficiency.

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