The Rushford-Peterson School District has considered making their early retirement incentive program a policy item. However, following discussion at the Monday, December 16 school board meeting, it was determined to be more effective practice to keep the program a limited offering.
Designed as a cost-savings measure for the district, the program currently allows teachers with more than 15 years of consecutive teaching at R-P the opportunity to take advantage of an early retirement incentives. The package currently under review includes a severance of $779.30 a monthly, to be deposited quarterly into a health savings account. Options of one, two, and three years were considered, totalling $9,351, $18,703, and $28,054 respectively.
The program has been offered by the district since 2008, but it was originally put in place as a one-year option. It’s been successful at achieving cost savings as near-retirement teachers opt out early, making way for teachers with less experience and therefore less expensive salaries. Calculations by the district indicate that savings could be as high as $25,000 a year, depending on the salary of retiring teachers and the experience a new teacher brings.
“There’s a pretty good chance you’ll save money as a school district,” said Superintendent Jon Thompson. “With a permanent policy, they know it will be there and there’s a comfort in that. From a board members’ perspective, you wouldn’t need to address it annually.” It was also noted that the incentive is not detailed in teacher contracts and the most effective way to control expenditures is to control staff. “It’s a good idea to stick with the incentive; it’s simple, it’s quick, it’s clean. But a policy could be written up going forward.”
Discussion also included at what point teachers would need to make their retirement intentions known. “With a decision from staff by November, we could tackle it in beginning of year, when planning,” noted Director Chris Grindland. The district will need to move quickly this year with teachers being given until January 31 for notify administration.
Director Bonnie Prinsen, a teacher at Rochester Community and Technical College, admitted some jealousy at the incentives, but also some concerns. “As a board, moneywise, finding a way to exchange high price teachers for low priced teachers is good, but it seems so awkward coming to the board saying, “I’d consider retiring if I had these things.” Prinsen suggested there could be a minimum age for eligibility for the program, in addition to the minimum 15 years of teaching. “I wouldn’t like someone young to use this, go out and seek another position somewhere else.”
“As a district, if they met the criteria, age in as minimum, not maximum, plus years of service, sure some could work again,” responded Thompson. “We washed our minds of it because the savings were there as a school district.”
“I always like to look ahead at what could happen,” added Prinsen.
The board, in a 5:2 vote with Board Chairman John Linder and Director Joyce Iverson opposed, to keep the incentive as a two-year option, rather than apply it as district policy. The stipulations for eligibility were amended to include both 15 years service and a minimum age of 55.
Conversation eventually returned to policies as Thompson referenced overall policy review. “It’s a primary board job, but a lot has fallen to Laura Hahn [District Administrative Assistant]. The understanding of what we have currently is a lettering system. I’m worried the policies are outdated. It was further noted that many of the policies do not cross-reference. Thompson suggested the board look review of all current policies, while putting policies suggested by the Minnesota School Board Association (MSBA) in place. In total, some 85 policies would need to be considered and potentially added.
“We may have them, just with that old format. With the time it takes, discussions can get lengthy. We need a plan in place and go slowly,” said Thompson. “The only timeline is the need for the policy that’s not in place yet, whether that takes us one year or five years.” The board opted to review 20 per year, possibly more, over the course of four years.
“It’s almost easier to go through what the MSBA has netted through their lawyers. The suggested way to go about this is to utilize what we’re paying for through MSBA,” added Linder.
The next regularly scheduled board meeting is Monday, January 27, at 5:30 p.m., in the forum room. The public is encouraged to attend.
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