SECTION C - RETIREMENT

 

 

 

1.       Insurance

 

          Full-time teachers who terminate their service with the Board and retire from teaching may, at their option, continue in the group health/major medical and/or dental insurance plans provided by the Board in accordance with COBRA and any other applicable statute.

 

          Teachers with a minimum of ten (10) years full time employment in the District immediately preceding their retirement who retire under the provisions of the Teachers' Retirement System of the State of Illinois (TRS) and who are not covered by another employer's insurance program, may enroll in a medical insurance group plan provided by the Teachers’ Retirement Insurance Program (TRIP).  Upon receipt of proof of payment, the Board shall annually reimburse the retiree for the premium for the individual coverage under such plan, provided such premium reimbursement shall not exceed $125.00 per month for teachers retiring prior to June 30, 1999; for teachers who retire after June 30, 1999 but before July 1, 2004, the reimbursement shall not exceed $155.00 per month; and for teachers retiring on or after July 1, 2004 but before July 1, 2007, premium reimbursement shall be an amount up to 100% of the individual (retiree only) TRIP Managed Care Plan or up to $200 per month, whichever is less, for the reimbursement of TRIP individual insurance or individual private insurance coverage other than another employer’s insurance program.  For teachers retiring prior to July 1, 2007 the annual reimbursement shall cease to be operative upon the death of the retiree or after a period equal to the length of the Teacher's consecutive full time service in the District, whichever shall first occur.

 

            For teachers retiring after June 30, 2007, upon receipt of proof of payment, the Board shall annually reimburse the retiree for the TRIP premium for the individual and/or family coverage up to $300 per month to a total of ten years, or death whichever comes first.

 

 

2.       Early Retirement Option (ERO)

 

          Full-time teachers with a minimum of ten (10) years of service in the District may elect to take early retirement without discount under the provisions of the "Illinois Pension Code", provided the Board may limit the number of participants therein as provided by law.

 

 

3.       Service Recognition Program (SRP)

 

Only teachers who retire pursuant to TRS, have at least 10 years of full time continuous District service, and who do not cause the Board to pay a penalty to TRS are eligible to participate.  However, a teacher will not lose his or her eligibility if the Board has to pay a penalty to TRS because of a District-mandated assignment or because of an error made by the District.   

In addition, to be eligible, a teacher must submit notice of retirement and an irrevocable letter of resignation to the Superintendent on or before February 1st. This deadline is for any individual planning to retire in FY 13, 14, 15, 16, or 17 who has not previously submitted a letter. (For individuals retiring in FY  17, the salary increase defined below will commence with the FY 14 school year).  For example, submit the notice of retirement on February 1, 2013, to retire in June 2016 or June 2017.  As another example, submit the notice of retirement on February 1, 2016 to retire in June 2019 or June 2020.  A teacher’s retirement shall be governed by the Collective Bargaining Agreement in place at the time the teacher’s notice of retirement is given.      If eligible, the Board will provide the teacher with a salary increase as defined below for up to four years of employment that is six percent (6%) above the teacher’s salary in the prior school year.

a.       If a teacher has TRS creditable earnings in the prior year that are over and above the teacher’s salary based on his/her placement on the salary schedule (e.g., a coaching or extra-curricular stipend), the teacher will receive a salary increase that is six percent (6%) above the teacher’s TRS creditable earnings for the prior school year as long as the teacher continues to perform the same extra duties.

b.       If however, a teacher had TRS creditable earnings in the prior year that were over and above the teacher’s salary based on his/her placement on the salary schedule (e.g., a coaching or extra-curricular stipend) and the teacher does not continue to perform the same extra duties for the following school year, the teacher will receive a salary increase that is six percent (6%) above the teacher’s salary based on the teacher’s placement on the salary schedule in the prior school year.

c.       If, however, a teacher had TRS creditable earnings in the prior year that were over and above the teacher’s salary based on his/her placement on the salary schedule (e.g., a coaching or extra-curricular stipend) and the teacher continues to perform some but not all of the same extra duties for the following school year, the teacher will receive a salary increase that is six percent (6%) above the teacher’s salary based on the teacher’s placement on the salary schedule and the salary the teacher received for the same duties that the teacher performed in the prior school year that the teacher continues to perform.

d.        In no case will a teacher’s TRS creditable earnings increase exceed six percent (6%) of the previous year’s TRS creditable earnings.

e.        A teacher who has submitted his/her retirement notice will continue to receive 106% of the previous year’s creditable earnings even if extra stipends from activities (e.g. KTI reimbursement, in-house subbing, coaching, and/or activity sponsorship) are discontinued or reduced in the new year.  However, the Service Recognition Award, defined in the Post Retirement Service Recognition Plan, will be reduced by an amount equal to the stipend total from the discontinued/reduced activities.  This reduction of the Service Recognition Award will cease for the individual once the dollar amount defined in the Post Retirement Service Recognition Plan has been equaled or exceeded.

f.         Withdrawal of Notice of Intent to Retire

The teacher's request for the approval of a retirement incentive shall be deemed to constitute his/her resignation from employment, effective on said date, once the request is approved by the Board.  This resignation shall be deemed irrevocable.  Effective with those teachers entering the Program after June 30, 2012, at its discretion, the Board shall consider a teacher’s written request for the withdrawal of his/her Notice of Intent to Retire based on the following factors:

 

1.       Diagnosis of terminal illness of the teacher's spouse, domestic partner, or the death of a spouse or domestic partner;

 

2.       Total disability of the teacher's spouse or domestic partner; and

 

3.       Serious illness of a medically and financially dependent child or parent.

 

As a condition of the Board's granting of the request, the teacher will agree to a wage reduction that will repay the Board any retirement incentives paid to the teacher to date. Repayment by wage deduction shall be completed within 180 days of the Board's approval of the withdrawal.

 

 

4.       Post Retirement Service Recognition Plan

 

Teachers who retire pursuant to TRS, have at least 10 years of full time continuous District service, who do not cause the Board to pay a penalty, and who give written notice of retirement and a letter of resignation to the Superintendent on or before February 1st are eligible to participate in the District’s Post-Retirement Service Recognition Plan.  However, a teacher will not lose his or her eligibility if the Board has to pay a penalty to TRS because of a District-mandated assignment.  Teachers who meet the foregoing eligibility requirements shall receive a post-retirement service recognition payment based on the following schedule:

 

                               Number of Years of Notice                      Service Recognition Award

                                                    1 year*                                                       $ 34,000

                                                    2 years                                                       $ 30,000

                                                    3 years                                                       $ 23,000

                                                    4 years+                                                     $ 12,000

 

                                                   * year of notice is 1st year

 

The applicable service recognition payment shall be paid within sixty (60) days after the effective date of the teacher’s retirement.

 

Notwithstanding the foregoing schedule based on the number of years notice, a teacher who gives such notice may nevertheless opt to retire in an earlier school year by giving written notice by February 1st of the school year which s/he will retire and receive the applicable service recognition payment for the actual number of year(s) notice as long as such earlier retirement notice date does not cause the Board to pay a penalty.  Example:  If a teacher gives written notice by February 1, 2013 to retire at the end of the 2015-16 school year and subsequently gives written notice by February 1, 2015 to retire at the end of the 2014-15 school year, said teacher will receive a service recognition payment of $23,000 as long as such earlier retirement date does not cause the Board to pay a penalty.

 

 

5.       Definition of Continuous Service

 

Continuous service shall not be considered interrupted or broken if any leave of absence (as described in Article XIV - Leaves, Sections A through L) has been granted during the service; however, the leave of absence shall not be counted as a year of service.

 

 

6.       Payment to Teachers’ Retirement System

 

a.       The Board shall remit for each Teacher a portion of such Teacher's compensation due such Teachers pursuant to the Compensation Schedule (Article XII, Appendices A, B and C, Compensation Schedules) of this Agreement to the Teachers' Retirement System to be applied for the retirement account of such Teachers.  During the term of this Agreement, this portion shall be nine percent (9%) plus three-quarter percent (3/4%) for TRIP or as adjusted by law.  The Teachers have no right or claim to moneys so remitted except as it may subsequently become available upon retirement or resignation from the Teachers' Retirement System.

 

b.       The balance of the amount due each Teacher, pursuant to such Compensation Schedule, shall be payable to the Teacher as salary in installments as otherwise provided herein, provided the Board shall deduct there from all moneys as required by law or as authorized by the Teacher pursuant to this Agreement.  Such withholding shall include any and all additional amounts requested to be paid to the Teachers' Retirement System for the account of such Teacher.

 

c.       In the event the Internal Revenue Service or a court or the Illinois Bureau of Revenue indicates any or all of the amounts paid to the Teachers' Retirement System is/are properly inexcludable in the gross income of the Teacher for taxation purposes, the Board will commence to withhold Federal and State income taxes on that portion of the Teacher's income which has been ruled inexcludable in his/her gross income.

 

d.       The Association and each Teacher will defend, indemnify and hold harmless the Board, its members, its agents and its employees from any and all claims, demands, actions, complaints, suits or other liabilities by reason of faithful payment of the contributions to the Teachers' Retirement System pursuant to the provisions of this Section.  No such claim, demand, action, or complaint, or suit may be settled or compromised by the Association or any Teacher without written consent of the Board, if such claim, demand, action, complaint or suit adversely affects the Board, its members, its agents and/or its employees.