TRS 6% CAP AND RETIREMENT LANGUAGE

Here is our language. Staff cannot drop any extracurricular, taking tickets, etc in the last two years or they lose money. They can add items but they don’t get any additional stipends.

Early Retirement Incentive

Teachers with fifteen or more years of consecutive service in the district are eligible to receive additional benefits under the terms of this Early Retirement Incentive (ERI) as they approach retirement. To be eligible for the ERI, the teacher must retire during a specified window period. Specifically, the teacher may receive this ERI if he or she retires either:

(1) at the end of the school year in which he or she first accumulates at least thirty-five years of creditable service in TRS (including applicable credit for sick leave, military services, or alternate pension systems); or

(2) At the end of any school year after he or she reaches age 60 so long as the teacher has accumulated no more than thirty-five years of credible service in TRS.

The eligibility requirements of this Early Retirement Incentive have been adopted purposefully to benefit both the teachers and the District. Specifically, the incentive is not available until the teacher can retire without the one-half percent per month reduction to his or her retirement annuity. Further, the incentive is not available unless the teacher can retire without obligating the teacher or the District to pay any payment or penalty to TRS including, but not limited to, ERO employer or member contributions. In addition, the teacher’s effective retirement date must occur at the end of the school year in which the teacher is first eligible for a non-discounted annuity from TRS so that the additional compensation remains an incentive to retire early rather than a mere severance payment. In determining these dates, teachers must consider and utilize all of their available sick leave for credible service purposes in TRS.

In order to receive the additional compensation available under this Early Retirement Incentive, eligible employees must deliver a non-revocable letter of resignation without contingency to the Superintendent no later than April 1st of the school year which is approximately twenty-six (26) months prior to retirement. Qualified teachers who have reached age 60 or attain 35 years of credible service (including any applicable credit for accumulated sick leave benefits or other service) prior to or at the end of the 2006-2007 school year may submit their non-revocable letter of resignation prior to April 1, 2006 and retire at the end of the 2005-2006 school year or at the end of the 2006-2007 school year. The letter of resignation must reference intent to retire under this Early Retirement Incentive Policy.

Teachers who elect to receive this Early Retirement Incentive by submitting a timely resignation as provided above shall be entitled to an increase in salary during the final two years of employment. The teacher’s TRS Creditable Salary for the year prior to the year of retirement shall equal to 106 percent of the TRS Creditable Salary received the prior year. The teacher’s TRS Creditable Salary for the year of retirement shall equal 106 percent of the TRS Creditable Salary received in the year prior to retirement. The district shall endeavor to spread the increase throughout the school year. However, the district retains the right to make necessary adjustments to bi-monthly pay at any time during the last two years to insure that the total received by the Teacher is consistent with this Section. For purposes of this Section, a Teacher’s “TRS Creditable Salary” means the Teacher’s base salary together with all other amounts from all sources which are creditable earnings under TRS rules. However, if a teacher opts to retire at the end of the 2005-2006 school year, his or her retirement incentive shall be limited to a one time increase in TRS Base Salary which is equal to 106% of the TRS Base Salary for the prior year.

Notwithstanding the above, teachers who discontinue an extra-duty assignment in either the year preceding the year of retirement or the year of retirement shall have their yearly increase for that year reduced by the amount of pay for the extra duty assignment. The term “year” shall mean “school year” and not “calendar year.”

In the event that a teacher’s resignation date under this policy contemplated use of sick leave benefits for creditable service purposes and the teacher subsequently uses all or a portion of his or her available sick leave days and does not have enough remaining sick leave days available upon the contemplated retirement date to retire without discount or use of the Early Retirement Option, the teachers resignation shall be automatically revoked and the teacher shall, subject to his or her health condition, continue employment until such time that he or she is eligible to retire at the end of a school year without a discounted annuity or under ERO.

If any teacher receives benefits under this policy and subsequently fails to retire as contemplated herein, such teacher shall be obligated to reimburse the district for the amount of the incentive less what the teacher would have received had the teacher not been eligible for the retirement incentive.

In the event the Illinois Pension Code, regulations promulgated by TRS, or TRS interpretations are made, changed or modified during the effective period of this Agreement and such interpretations or modifications have the effect of requiring employer or member contributions under this ERI, the parties shall engage in mid-term bargaining to amend this ERI in such a way that no employer or member costs shall be incurred.

Once a teacher submits their letter there is no way possible for their creditable earnings to increase more than 6% per contract. So they are simply SOL and they need to understand that going in and BEFORE they submit their letter. A deal is a deal!

15.19.1 Notice of Retirement

(a) If an Employee gives the Board an irrevocable notice of retirement by October 1st three (3) years prior to the year of retirement, the Board shall pay him/her a six percent (6%) retirement incentive, inclusive of any other increases in compensation for each of his/her remaining three years of service.

(b) If an Employee gives the Board an irrevocable notice of retirement by October 1st two (2) years prior to the year of retirement, the Board shall pay him/her a six percent (6%) retirement incentive, inclusive of any other increase in compensation, for each of his/her remaining years of service.

(c) If an Employee gives the Board an irrevocable notice of retirement by October 1st one (1) year prior to the year of retirement, the Board shall pay him/her a six percent (6%) retirement incentive, inclusive of any other increase in compensation, for each of his/her remaining year of service.

15.19.2 Calculation of Retirement Incentive

(a) Once an Employee submits an irrevocable notice of retirement by October 1st that Employee shall be removed from the salary schedules contained in Appendices A, B, and C of this Agreement. All calculations for salary increases will be based on the Teachers Retirement System (TRS) creditable earnings in the year prior to the submission of the irrevocable notice of retirement. Once the Employee submits an irrevocable notice of retirement in no case will the Employee’s TRS creditable earnings increase exceed six percent (6%) of the previous year?

(b) If after submitting an irrevocable notice of retirement by October 1st, the Employee resigns from, or is dismissed from activities covered in Appendices B and C of this Agreement, the retirement incentive for that Employee will be recalculated accordingly.

15.19.3 Irrevocable Letter Resignation

(a) To be eligible, an Employee must submit an irrevocable letter of resignation by October 1st, which must be accompanied by a (TRS) member, requested “Personal Statement of Benefits” and a “Benefit Estimate” confirmation of total years of service. In addition, an employee is considered to be eligible for the retirement incentive by meeting one of the following conditions:

(b) The Employee becomes sixty (60) years of age by July 1 of a school year and has five years TRS creditable service.

(c) The Employee qualifies to receive a full pension annuity by reason of being at least fifty-five (55) years of age and having attained thirty-five (35) years of non-upgraded TRS creditable service.

(d) The Employee qualifies to receive a full pension annuity by reason of being at least fifty-five (55) years of age and having attained thirty-eight (38) years of upgraded TRS creditable service.

We have a rather complex formula that allows up to 6% raises the up to the last five years before retirement which replaced 10% increases in their last two years from the previous contract. They go off of the salary schedule and the contract limits them to no more than a 6% increase in any of those years.

"TRS Creditable Salary for up to the last three years of employment shall equal 106 percent of the TRS Creditable Salary for the immediately preceding prior year(s). For purposes of this Section, a Teacher's "TRS Creditable Salary" means the Teacher's base salary together with all other amounts from all sources which are creditable earnings under TRS rules. Hope this helps.

5.23 RETIREMENT INCENTIVE (“Plan”)

A. The Retirement Incentive “Plan” is intended to recognize employees who have rendered at least 10 years of TRS service to the District and who are eligible to retire under TRS.

B. To be eligible the employee:
1. Must be at least sixty (60) years of age at the time of retirement; or

2. Must be age eligible at the time of retirement WITH NO ERO Cost to the District or District assistance to avoid an ERO Cost.
Example: Must be fifty five (55) years of age bat time of retirement with at least thirty five (35) years of creditable service with TRS and:

3. Must have a minimum of ten (10) years of TRS service in the District and a minimum of twenty five (25) years of TRS service in Illinois; and


A. The Retirement Incentive “Plan” is intended to recognize employees who have rendered at least 10 years of TRS service to the District and who are eligible to retire under TRS.

B. To be eligible the employee:
1. Must be at least sixty (60) years of age at the time of retirement; or

2. Must be age eligible at the time of retirement WITH NO ERO Cost to the District or District assistance to avoid an ERO Cost.
Example: Must be fifty five (55) years of age by December 31st at time of retirement with at least thirty five (35) years of creditable service with TRS and:

4. Must have a minimum of ten (10) years of TRS service in the District and a minimum of twenty five (25) years of TRS service in Illinois; and

5. Must provide verification of the number of years of total service accepted by the TRS; and

Must submit an irrevocable “Letter of Intent to Retire” to the School Board by May 30th preceding the school year in which ““Plan”” shall commence or by September 1st if the employee elects to submit five years out.

6. There must be No ERO Costs to the District or District Assistance to avoid an ERO Cost.

Employees who elect a five-year ““Plan”” will receive a bonus of $1,000 upon completion of the first year of the “Plan”. A maximum of five employees may elect to initiate participation in the “Plan” during any year of this agreement. If more than five employees apply for participation in any year, the following criteria, in priority order, will apply to determine those eligible employees:
a. Years of teaching service in the District
b. Years of total service as per TRS
c. Chronological age

C. For each year of the “Plan”, participants will be paid in accordance with the applicable salary and extra duty pay schedules as are attached hereto and made a part hereof. In addition, on the last day of each “Plan” year (which corresponds to the fiscal year) the Board shall determine a retirement incentive bonus (the “Incentive Bonus”) for each participant.

The incentive bonus shall equal the difference between the participant’s previous year’s TRS creditable compensation and 106% of the previous year’s creditable compensationFor the second and any subsequent years of the “Plan”, the previous year’s base compensation and extra duty compensation shall include the Incentive Bonus paid during such previous year.

D. If an employee is engaged in an extra duty activity that is discontinued by the Board while the “Plan” is in effect, the employee shall be offered an extra duty assignment (for which the employee is qualified to render service) of equivalent pay for the duration of the “Plan”.

E. The Board may not approve an extra duty assignment for a “Plan” participant that will cause such participant’s total compensation to exceed 106% of the previous year’s total compensation, unless such assignment is exempt under P.A. 94-1057.

F. Having elected to participate in the “Plan”, any employee who thereafter elects early retirement circumstances where the District incurs an ERO penalty shall notify the union and district of the expected penalty costs to the district. If the employee chooses to terminate employment with the District prior to the completion of the “Plan”, said employee will reimburse to the District the $1,000 incentive bonus.

G. If any provision of this Agreement or the application of such provision is or shall at any time be contrary to or unauthorized by law, then such provision shall not be applicable or performed or enforced, except to the extent permitted or authorized by law, provided that in such event all other provisions of this Agreement shall continue to be in effect.