The Cumberland County Board of Education approved a retirement incentive program Aug. 26 that would provide support staff retiring with 30 years of service with individual health insurance until they are eligible for Medicare benefits.
"If they have worked for us for 30 years with the salaries they work for, I feel this is a benefit it is important to offer. I feel it is a step in the right direction and it is setting an example for the rest of the state," Director of Schools Aarona VanWinkle told the board.
In order to take part in the program, retiring employees must notify the board of their intent to retire by March 1 of the school year prior to requested retirement date. Notification may be waived if retirement is due to unexpected health conditions or unforeseeable circumstances. The employee must have 30 years of creditable Tennessee Consolidated Retirement System service with Cumberland County Schools, submit an application for continuation of insurance with their TCRS retirement application and maintain payroll deduction for premiums until their actual retirement date. The insured must comply with all eligibility requirements established by the health insurance plan.
The BOE will terminate the premium payment incentive if the retiree returns to full-time employment with an agency covered by TCRS.
Retirees can pay for family insurance coverage at the same group rate as support personnel.
The BOE will pay for a maximum of eight of the current support employees who choose to retire in any one year. Should there be more than eight employees choosing to retire, applicants will be accepted in the order of the number of years of TCRS approved service. Should applicants have the same number of years of service, those with the earlier date of submission of an application will be given preference in the order of acceptance. Any applicant not granted the benefit due to the eight-person cap would be placed in a pool effective for the following year, with the date of their application remaining unchanged.
Seven employees would be eligible for the benefit in the 2010 school year, if they chose to retire, at a maximum cost of $39,387.60. The estimated premium for each is $5,626 per year. In the 2011 school year, another six employees would be eligible, with a total cost of $73,148. In 2012, three retirees would come off the program due to their age and becoming eligible for Medicare benefits. Only one employee would qualify to enroll.
VanWinkle included the difference in salaries for a beginning employee and an employee with 30 years of service. A bus driver with 30 years experience makes $12,832 a year, compared to a beginning driver making $7,538, for a difference of $5,294. A teaching assistant with 30 years experience makes $16,765 a year, compared to a beginning assistant making $9,848. A custodian with 30 years makes $23,233, compared to a beginning custodian making $13,645. A school secretary makes $21,188 after 30 years while a beginning school secretary makes $12,448.
The difference in salaries would offset the cost of offering the benefit, VanWinkle said.
Funding for the benefit was included in the 2010-2011 school budget.
Mary Smith, 7th District representative, moved to approve, supported by Dan Schlafer, 9th District representative. The motion passed with Victor Randolph, 6th District representative, and Bob Scarbrough, 5th District representative, voting no.
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