WEST FARGO (AP) - The School Board has decided to drop a cash incentive in effect since 1995 to encourage teachers to retire as soon as they are eligible.
The board voted unanimously Monday to eliminate what it called an "early retirement payment" as of June 30, 2007.
Teachers close to retirement said the board's decision caught them by surprise and made them feel unappreciated.
"Some of us have been making plans to spend that money," said Rich Cwikla, a technical education teacher at the high school.
Cwikla was one of about 25 teachers who attended the meeting to protest the change. "We've been counting on it," he said.
Under the current policy, teachers eligible to retire with full benefits under the teachers' retirement plan also could apply for a cash incentive from the district. The amount ranged from 10 percent to 80 percent of the teacher's salary, depending on years of service and retirement eligibility.
The board adopted its early retirement policy for teachers in 1995, when people believed that school districts saved money by encouraging more experienced teachers to retire so they could be replaced with younger teachers, Superintendent Chuck Cheney said.
Now, districts want to keep experienced teachers, who are often considered the best in the classroom, he said.
"Giving them an incentive to retire is disingenuous with the realities of hiring highly qualified teachers," Cheney said.
Last year, the West Fargo School District spent $310,000 on early retirement payments for seven employees. The highest scheduled salary, which goes to teachers with the most experience and education, is about $63,000 this year.
West Fargo also pays 15.5 percent of each teacher's salary into a pension. Teachers can retire with full benefits at age 65 or when their age plus years of experience equals 85. Payments go up if they defer retirement.
Robin Hill, the district's personnel director, said it is difficult to know whether the district saved money by offering incentive payments. Teachers who received them may have retired at the same time without them, she said.
Of the 55 retirees since 1995, 34 have been eligible for the early retirement payment, she said.
Mark Berntson, president of the West Fargo Education Association, said early retirement payments help both the district and employees.
"A sudden cutting off of this financial support is bad for morale and bad for financial planning," he said.
Posted in State-and-regional on Tuesday, October 25, 2005 7:00 pm Updated: 6:40 pm.
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