Brandon Twp.- The school board unanimously approved a motion at their Jan. 11 meeting to offer an early retirement incentive to teachers in the district.
‘The package is very fair for the teachers,? said Superintendent Lorrie McMahon. ‘Any incentive like this encourages good, experienced teachers to leave, but we’re excited about the new teachers we’ve hired and want to keep them also.?
Executive Director of Fiscal Affairs Jamie Cowan presented the idea of offering a buyout to teachers at an early December finance committee meeting as the district looks for ways to cut costs as the state reduces per-pupil funding.
At Monday’s board meeting, Alan McLean, a representative for Williams & Company, LLC, the financial services company that put together the early retirement incentive package for the district, presented the ‘Extra Income Transition Plan.?
Under the plan, teachers with at least 15 years of service in the district will be eligible to receive a total of $45,000 paid in equal annual installments over five years if they separate from service on June 30, 2010 or a total of $40,000 paid in equal annual installments over five years if they separate from service on June 30, 2011.
McLean said most teachers would not consider the incentive unless they have more than 25 years of service in, and are closer to typical retirement age. Based on the number of teachers in the Brandon district with that much experience? 25? and what the company sees on average, McLean estimated that eight teachers would take advantage of the incentive here.
‘The board did not set a limit? one can take the package or 20 can take it,? McLean said. ‘It’s a good package and I think there might be quite a few people who jump on it. No one knows if the district will replace or not replace the positions, because they don’t know who will take the package. If they don’t replace certain people, there will be even greater savings.?
McMahon estimated the district would save about $47,000 for each teacher who accepts the early retirement incentive, even if they are replaced.
‘If we don’t replace them, it will save us twice that,? she said. ‘The average is eight (that will take the buyout). We are hoping for that many and possibly more.?
While the current early retirement incentive plan is only being offered to teachers, McMahon said another equitable plan is being worked on to offer to support staff including secretaries, maintenance and custodial, food service, parapros, and bus drivers. She hopes to have that plan for the Feb. 8 board meeeting.
The teachers will receive a formal presentation on the approved early retirement incentive plan at 4:30 p.m., Feb. 2, at the central office, 1025 S.Ortonville Road.