Philosophy: The purpose of this policy is to accommodate those certified employees who elect to retire early.
Policy: Early Retirement is possible in the South Sanpete School District under the guidelines of the State Retirement System. Certified employees are eligible for this benefit for three years or until the employee is eligible for Medicare, which ever comes first. The Board intends by adopting this policy to entirely supercede any prior early retirement policy and to provide a non-discriminatory policy which complies with the requirements of the Older Worker's Benefit Protection Act.
1. Any certified employee who has met the requirements of the State Retirement System and who desires to retire early shall be entitled to benefits. If the employee is eligible to receive benefits under the Social Security ACT 42 U.S.C. (401 et seq.) that amount shall be incorporated into the entire amount paid under this policy. The amount paid by the School District plus any Social Security benefit shall not exceed the amount shown on the following scale:
First Year: $1,500.00
Second Year: $1,500.00
Third Year: $1,500.00
The retiree may arrange payments of these benefits at the most advantageous time for social security and personal income tax considerations according to a schedule to be implemented by the District Business Administrator found in Policy GBQ-1.
2. The School District shall continue to pay the health insurance premiums for the early retiree for the same medical coverage as other certified employees for three years or until the employee is eligible for Medicare, whichever occurs first. After that period, the employee shall be entitled to rights under COBRA but must make arrangements for any further coverage and bear its expense. Also, the employee may receive cash in lieu of the three years of insurance coverage until the employee is eligible for Medicare at the rate of $2400 per year. The employee will not receive the premium increase for future years and the amount will be reduced if it is determined that the coverage status will change. Policy GBQ-1 will be used to calculate this reimbursement.
3. In the event that a retired employee dies prior to the complete execution of the retirement contract, the unpaid balance shall go to the designated heirs as pro-rated and assigned by the retiree. Any remaining insurance benefits will accrue to direct dependents only in the form of the insurance premiums.