SUBJECT: Early Retirement Incentive for Administrators (Voluntary)
THIS POLICY ONLY APPLIES TO EMPLOYEES WHO HAVE RETIRED PRIOR TO THE 2006-07 CONTRACT YEAR
I. Board Policy
The Board shall provide District administrators
an early retirement incentive, and directs the District Administration to
administer the program as outlined below.
II. Administration Policy
The Administration shall administer the Early Retirement
Incentive Program according to the following guidelines:
A. An administrator is eligible for this benefit if:
1. The administrator has a minimum of
ten (10) years full-time equivalent service with the District and, at the
time of resignation, retires under the provisions of the Utah Retirement Systems.
Years of service will be calculated on the full-time equivalents; i.e., 2
years of half-time service equal 1 year of full-time service.
2. The administrator has signed a voluntary
early retirement acknowledgment, agreement and waiver to the Age Discrimination
in Employment Act (P.L. 101—433) prior to the retirement date of the
B. Each year the retiree will receive a percentage of the difference between
Lane A, Step 1, of the teachers' C salary schedule and Lane G, Step 25 of
the C salary schedule, plus 10 percent of the difference between the administrator's
current salary and the amount on Lane G, Step 25, of the teachers' C salary
schedule. The percentages shall be based on Jordan District full-time equivalent
service as listed in the following table:
Equivalent Full-time Years
Percentage of the Difference
15 years 38%
20 years 48%
25 years 53%
30 years 58%
C. This benefit will be paid for a maximum of four (4) years or until the
end of the month in which the employee reaches the age for the unreduced Social
Security benefit, whichever comes first. An employee retiring during the contract
year will be paid monthly commencing the month following the actual retirement
date. Employees retiring at the end of the contract year will receive a monthly
entitlement commencing with the July 1 pay period.
D. FROM the date of retirement until the end of the first fiscal year of the
benefit, the retiree has two additional options:
1. The retiree may receive the monthly
benefit payments in a lump sum. A penalty of 3.25 percent shall be imposed
to offset the District's loss in interest earnings.
2. The retiree may authorize the District
to use the monthly benefit payments to purchase additional service credit
for the employee through the State Retirement System. (See Senate Bill 34,
passed by the State Legislature in 1995.) A penalty of 3.25 percent shall
be imposed to offset the District's loss in interest earnings.
Note: The rate of the penalty shall be
examined annually and adjusted as necessary to reflect significant changes
in interest rates.
E. If death should occur at any point between actual early retirement and
the four-year entitlement, a lump sum death benefit payment still due the
retiree will be paid to the designated beneficiary (ies). If a retired administrator
dies, insurance coverage will continue for eligible dependents according to
the schedule outlined in DP319 NEG—Retirement, Licensed.
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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