Policy Code: GCPC

Adoption Date: Tuesday, March 22nd, 2016

Reviewed: Tuesday, December 19, 2017

RETIREMENT- EARLY RETIREMENT INCENTIVE POLICY

  1. A licensed or classified employee of the Iron School District ("District") shall receive this benefit if he/she;

    (a) Has been employed by the District full time as a licensed or classified employee for a minimum of fifteen (15) years immediately preceding his/her retirement; and

    (b) Retires either at or after the end of a school year but before the next school year starts (although, in extreme circumstances, the Board may allow an employee who retires prior to the end of a school year to still receive this benefit); and

    (c) Has attained the thirty (30) year service requirement (if employed prior to July 1, 2010) or the thirty-five (35) year service requirement (if employed after July 1, 2010) to qualify for full-defined benefit plan pension benefits under the Utah State Retirement System or has attained the following age;

    Year of Birth Early Retirement Age
    1950-1954 61
    1955 61 and 2 months
    1956 61 and 4 months
    1957 61 and 6 months
    1958 61 and 8 months
    1959 61 and 10 months
    1960 and later 62

    *If you were borne on January 1st of any year you should refer to the previous year.

    (d) Submits form GCPC-E for this benefit to the Superintendent of the District by March 15 of the contract year in which the employee retires.

  2. Employees who qualify for benefits hereunder shall receive benefits as described below in this paragraph, provided that any monthly unreduced old age insurance benefits under the Social Security Act 42 U.S.C. (401 et seq.), which the employee is eligible to receive (whether actually applied for and received or not and computed as if the employee does not take reduced old age insurance benefits under such Social Security Act irrespective of whether such reduced benefits are taken or not) shall be incorporated into the semi-monthly stipends paid under this policy beginning with the first month after the employee becomes eligible for such unreduced old age insurance benefits, so that the total stipend amount paid during any month (beginning with the first month after the employee becomes eligible for such unreduced old age insurance benefits) by the District plus such unreduced old age insurance benefits the employee is eligible to receive during such month shall equal the amount shown on the following benefits scale:

    EARLY RETIREMENT INCENTIVE BENEFITS

    Year of Retirement Benefits
    1st Retirement Year a semi-monthly stipend of 1/24 of 20% of the employees salary per his/her placement on the applicable salary schedule during the contract year of retirement plus the Insurance Benefit described in #3
    2nd Retirement Year a semi-monthly stipend of 1/24 of 17% of the employees salary per his/her placement on the applicable salary schedule during the contract year of retirement plus the Insurance Benefit described in #3
    3rd Retirement Year a semi-monthly stipend of 1/24 of 14% of the employees salary per his/her placement on the applicable salary schedule during the contract year of retirement plus the Insurance Benefit described in #3
    4th Retirement Year a semi monthly stipend of 1/24 of 11% of the employees salary per his/her placement on the applicable salary schedule during the contract year of retirement plus the Insurance Benefit described in #3
    5th Retirement Year a semi-monthly stipend of 1/24 of 8% of the employees salary per his/her placement on the applicable salary schedule during the contract year of retirement plus the Insurance Benefit described in #3

    For employees who retire hereunder with at least twenty-five (25) years of full-time service with the District, immediately preceding retirement, the benefits scale above shall be applied using 20% for the second through fifth retirement years instead of, respectively, 17%, 14%, 11%, and 8%.

    This benefit will be provided for a maximum of five (5) years, as described above. If death of the retired employee receiving benefits hereunder should occur, stipend and insurance benefits shall terminate.

  3. The Insurance Benefit hereunder shall consist of the same coverage for the retired employee under the District's health insurance policy (not including dental, life, or long-term insurance coverage) as such retired employee would have if the retired employee were still employed during the period the Insurance Benefit is provided. However, when a retired employee receiving benefits hereunder becomes eligible to join Medicare, the Insurance Benefit ceases. Retirees will be responsible to pay their portion of the insurance premium that would be required if the employee were still employed during the period the Insurance Benefit is provided.

  4. Semi-monthly stipend benefits hereunder shall be paid on the regular District semi-monthly payroll dates for professional employees beginning in July and early retirement hereunder. Insurance Benefits will also begin in July after early retirement hereunder. "Retirement Year" as referred to in the benefits scale above shall be the same one-year period as the Contract Year.

  5. Benefits of the early retirement incentive program provided by the District are independent of the Utah State Retirement System. Retirees should carefully consider the effect of early retirement as it relates to Social Security, State Retirement, Income Taxes, Medical and Life Insurance, etc.

  6. Application forms for the Early Retirement Incentive program may be obtained at the District Office.