The Board of Education of the Independence Community School District may offer an early retirement benefit for full-time employees holding a current license from the Iowa Board of Educational Examiners including teachers, counselors, and media specialists currently performing their assigned duties within the District. The purpose of the early retirement plan is to: 1) enable staffing modifications without disrupting the careers of those who do not wish to leave the teaching profession; 2) facilitate a long-range cost savings to the school district.
A licensed employee is eligible under the early retirement plan when the licensed employee:
1. Is at least 55 years of age on or before June 30th of the year in which the employee wishes to retire.
2. Wishes 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.
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 licensed employee of the Independence Community School District, unless the employee otherwise resigns, is discharged or is reduced from the staff.
A qualified retiree under this plan 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.
An employee who elects to participate in this program will become a retired teacher and will be entitled to all rights and privileges of such a retiree under applicable laws and policies of the Independence Community School District.
BENEFIT:
The Independence Community School District will make one payment equal to 40 percent of the current year’s salary less supplemental pay or extended contract pay deposited into a Health Reimbursement Arrangement as a non-elective employer contribution directly into the early retiree’s accounts established and maintained by the District’s Health Reimbursement Arrangement Plan. One payment shall be made in July 2021.
Employees/retirees may continue participation in the District’s group insurance benefits at their own expense pursuant to COBRA and Iowa Code section 509A.13.
Nothing herein shall limit the School District’s ability to change the terms of its existing health insurance plan. This plan in no way guarantees that a participating employee will be provided any certain level of benefits during the time of the employee’s participation in the insurance benefits portion of the early retirement program.
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 an early retirement plan for licensed employees. The Board may discontinue the school district’s plan at any time. In the event the 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
413.3 Classified Employee Early Retirement Plan
Approved 7/18/2005 Reviewed 02/20/2019 Revised 12/17/2007 12/19/2011
12/21/2020 11/17/2008 03/18/2013
01/14/2009 01/20/2014
02/09/2009 01/19/2015
07/27/2009 12/19/2016
11/16/2009 01/15/2018
02/22/2010 02/20/2019
12/21/2020
