MOUNTAIN PINE -- Early retirement incentive pay to 10 employees is meant to help save the Mountain Pine School District almost $400,000 over the next three years.
The district made the "one-time offer" of $20,000 for any certified and classified personnel to retire. The goal was "to reward long-term employees for their loyalty and length of service while at the same time containing costs."
The cost of the bonuses plus the salaries of their replacements will be about $23,000 more for the 2016-17 school year had the district not offered the incentive. Savings will begin in the 2017-18 school year with a projected total of almost $400,000 over three years.
Board member Tammy Brown approached district officials with the idea after she was elected in September. She learned the Rogers School District had recently offered a similar incentive for its employees.
"We had several employees that were near retirement age that had expressed the desire to retire -- not all of them, but a few had expressed the retire to go ahead and retire," Brown said. "Their concern was the medical insurance since they weren't quite 65 yet and eligible for Medicare.
"By giving them an incentive of paying the equivalent of their medical insurance over the next five years, that was an incentive that allowed them to retire. It allowed us also to bring in newer teachers."
Superintendent Bobby Gray knew of other districts who offered similar bonuses. The district constructed a proposal to present to the school board.
The policy was approved by the board in February. Brown said the offer will benefit the district's budget.
"It also helps out the retiree by allowing them to have that excess money to pay toward their health insurance," Brown said.
Employees were given until April 15 to provide written notice of their retirement. They must have worked to earn at least 10 years service credit with the Arkansas Teachers Retirement System, worked at least five years at Mountain Pine and must enroll in the Teacher's Retirement Program.
Gray's resignation was accepted by the board in January. He had been at Mountain Pine for six years to conclude a 34-year career in education.
Elementary schoolteacher Margaret Compton was among the retirees. She recently finished her 51st year at Mountain Pine.
Leota Poteete and Doris Singleton each retired after 39 years with the district in various positions. Poteete coordinated student information for the Arkansas Public School Computer Network. Singleton is the bookkeeper and treasurer. Both will stay on after Thursday and receive a daily rate of pay to help prepare their replacements.
Additional retirees are Wanda Borgognoni, high school library media specialist; Cathy Gilbreth, elementary school library media specialist; Ellen Haight, family and consumer sciences; Judy Humphreys, paraprofessional; Laura Irons, elementary school teacher; and Deana Throckmorton, elementary schoolteacher. Band director Barbara Herron also retired, but did not meet the requirements for the incentive bonus.
The $200,000 will be distributed on the Sept. 5 payroll. Most of the new hires to fill their positions are educators with only several years of experience.
The district's proposal said the incentive pay will reduce salary cost, the district can potential increase or decrease staff as needed, promote current employees, avoid potential program or staff cuts, or both, and renew "enthusiasm for the educational process within the district." The offer was presented as a "win-win" for the employer, participants, students and community.
Mountain Pine was the only school in Garland County to offer the bonuses this year. Many districts follow policies similar to that of Fountain Lake and Lake Hamilton, which pay retirees for any leave balances. Lake Hamilton's payments are made in a separate June payroll.
According to Lake Hamilton's policy, any certified staff member retiring with at least 25 years of public school service, not having 15 consecutive years of unemployment with the district, will receive substitute pay for one-half of all unused sick leave days at retirement.
Lakeside's school board approved a $1,000 bonus for all employees this year. The bonuses are not automatic and are not re-occuring.
Hot Springs allows retirees to be paid for unused sick days. The district offers retirees $70 for as many as 101 accumulated days.
Local on 06/28/2016