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

Number: DP321 NEG
Effective: 8/27/85
Revision: 9/8/09


SUBJECT: Early Retirement Incentive—Licensed (Voluntary)

THIS POLICY ONLY APPLEIS TO EMPLOYEES WHO HAVE RETIRED PRIOR TO THE 2006-07 CONTRACT YEAR.
  1. Board Policy
    The Board shall provide certificated employees of the District retirement incentive, and directs the District Administration to administer the program as outlined below.
  2. Administration Policy
    The Administration shall administer the retirement program according to the following guidelines:
    Guidelines
    1. A licensed employee is eligible for this benefit if:
      1. The employee 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 I year of full-time service.
      2. The employee has signed a voluntary retirement acknowledgment agreement and waiver to the Age Discrimination in Employment Act (P.L. 101—433) prior to the retirement date of the employee.
    2. Each year the retiree will receive a percentage of the difference between Lane A, Step 1, of the teachers' C salary schedule and that lane and step which the employee is on at the time of retirement. Retirees paid on the B salary schedule shall have their salary placement converted to the full-time equivalent lane and step on the C schedule to calculate this benefit. 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
      10 years
      28%
      15 years
      38%
      20 years
      48%
      25 years
      53%
      30 years
      58%
    3. Upon retirement, an employee has four options:
      1. This benefit will be paid for a maximum of four (4) years or until 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.
      2. The retiree may authorize the District to purchase additional service credit for the employee through the State Retirement System as allowed by the Utah State Retirement System and Utah State law (See Senate Bill 34 passed by the State Legislature in 1995). The lump sum amount used as to procure retirement credit shall be discounted by the current prime interest rate plus 2 percent for each year to offset the District’s loss of interest earnings.
      3. The retiree may receive the monthly benefit for the first 12 months in a lump sum payment. The current prime interest rate plus 2 percent will be imposed to offset the District’s loss of interest earnings.
      4. The retiree may receive the entire early retirement in one lump sum. The lump sum payment will be discounted by the current prime interest rate plus 2 percent for each year to offset the District’s loss of interest earnings.
    4. Upon death of retiree, a one-time lump sum survivor payment will be made to surviving beneficiary as listed at the time of retirement, unless appropriate changes have occurred. The lump sum payment will be discounted by the current prime interest rate plus 2 percent for each year to offset the District’s loss of interest earnings.
    NOTE: The prime interest rate shall be examined annually and adjusted as necessary to reflect significant changes in interest rates.

 


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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