The Board of Education of the Independence Community School District agrees to provide a supplemental benefit for classified employees, due to early retirement from the district. The purpose of the early retirement plan is to: 1) enable staff modifications without disrupting the careers of those who do not wish to leave the education profession; 2) facilitate a long-range cost savings to the school district.
Eligibility for early retirement plan is based on the following criteria:
1. Is available to employees of the age of 55 on or before June 30th of the current fiscal year.
2. Wish to retire voluntarily from service in the Independence Community School District.
3. Has been actively employed during the school year in which one requests retirement benefits.
4. Has completed a minimum of fifteen (15) years continuous full time service to the Independence Community
School District by June 30th of the current fiscal year and are currently employed at the time the voluntary
retirement request is made. A leave of absence may interrupt continuous service without affecting the
continuous years of service rule. Professional and military leave will qualify toward continuous service.
5. Is not receiving payments from the district’s long-term disability insurance program or any other wage
replacement program.
6. Has not been discharged for cause or notified that their contract is under consideration of termination or
reduction.
7. Receives approval for resignation and participation in this program by the Board of Education.
8. Is one of the first five (5) classified applicants.
Approval of the accompanying request for resignation will be considered as final action of the employee’s resignation and will constitute termination of his/her continuing contract at the completion of the current school year.
An employee’s application for early retirement benefits is not, in itself, a resignation of a contract with the Independence Community School District. However, acceptance by the Board of Education of an application for early retirement benefits will be considered a voluntary resignation and termination of the employee’s continuing contract effective at the end of the current fiscal year. Should the board not accept the application, the employee will remain a classified employee of the Independence Community School District, unless the employee otherwise resigns, is discharged or is reduced from the staff.
A recipient of this policy provision may choose to continue coverage under the district’s hospitalization and major medical plan, if eligible at time of retirement, at the rate determined by the carrier, by paying the monthly premium amount in full to the business manager’s office prior to the date the district’s premium payment is made to the insurance carrier. All insurance programs are subject to the policies of the insurance carriers. Dependent’s insurance will cease at the same time as the employee’s.
BENEFIT OPTION:
Employees participating in the early retirement plan may elect to receive early retirement plan benefits of fifty percent (50%) of their current contracted annual salary (not to include supplemental or extra hours).
All benefits will be paid out in one lump sum into a 403(b) retirement plan in accordance with Internal Revenue Service guidelines and board determined plan.
In the event of the death of the employee prior to payment of the early retirement plan, payment shall be made to a designated beneficiary; or in the event no beneficiary is named, payment shall be made to the estate of the employee.
Miscellaneous terms:
The district is not providing tax advice, and the employee must consult the employee’s own tax advisor for the actual taxability of retirement benefits.
The board reserves the right to determine how many and which employees will be granted benefits under this plan.
The board has complete discretion to offer or not offer a severance plan for classified employees. The board may discontinue the school district’s severance plan at any time. In the event the severance plan is altered or ended, employees who separated from the district under its provisions will continue to receive the benefits authorized by the Board of Education prior to that time.
Legal Reference: Iowa Code 279.46; 509A.13 (2011)
Cross Reference: 401.14 Recognition for Service of Employees
407.3 Licensed Employee Early Retirement Plan
Approved 07/18/2005 Reviewed 01/15/2018 Revised 12/17/2007 12/19/2011
11/17/2008 03/18/2013
01/14/2009 01/20/2014
02/09/2009 01/19/2015
07/27/2009
11/16/2009
02/22/2010
