SCHOOL EXAMINES INCENTIVE; EARLY RETIREMENT WILL BE CONSIDERED

The Cape Girardeau Board of Education will consider a retirement incentive plan for teachers and administrators that could help the district ease pending budget cuts.

The executive committee of the Community Teachers Association approved the proposal at its meeting Wednesday afternoon. The general membership of the organization will vote on the plan Friday, and it is on the agenda for Monday's Board of Education meeting.

If approved by the board, the proposal will offer teachers and administrators meeting eligibility requirements a financial incentive to retire.

Larry Dew, business manager for the school system, said a savings could be realized because many of those retiring would not be replaced. Also, it could lower the number of people who might be fired as a result of budget cuts.

Dew said approximately 36 people currently employed would be eligible for the plan as it is now drafted. "Research shows that 20 to 40 percent of those eligible will participate," Dew said.

Myrnita Grantham, chairman of the CTA salary committee and a teacher at L.J. Schultz School, said teachers have been interested in a retirement incentive plan for several years. A subcommittee of the CTA salary committee drafted the proposal.

"Last year, when we talked about our pay raise and the one-time payment, we said we wanted to push for a retirement incentive plan for this year," Grantham said. "All this was taking place before the budget reallocations."

Grantham said the $1.4 million in budget cuts the district is in the process of making does give added impetus for the proposed one-time offering.

She estimated that as many as 16 staff positions could be cut through the budget reallocation process.

"This year is the budget crunch," Grantham said, "This is the year we hope to help teachers not lose jobs.

"We are giving people the option to chose it; we are not forcing anyone to do anything," she said.

Those with a bachelor's degree would receive a total payment of $20,000 and those with a master's degree would receive $25,000.

The money can be paid in two ways over five years, with equal quarterly payments, or over 18 months in three installments.

The plan also includes a health- care-insurance option for those employees who would want to continue with the district's group plan.

Under the proposal, individuals would be eligible if they have completed 30 years of creditable service with the Missouri Retirement System, with the last 10 years of service in Cape Girardeau public schools; or have completed 25 years or more of creditable service with the Missouri Retirement System and be at least 55 years of age, with the last 10 years of service with the Cape Girardeau public schools; or are eligible for full retirement with the Missouri Retirement System at age 60, with a minimum of 10 years service, which must include the last 10 years with Cape Girardeau public schools.

These requirements also qualify individuals for normal retirement benefits through the Public School Retirement System.

If the package is approved, those choosing the incentive plan will have until April 2 to notify the superintendent.

Full-time certified staff, which includes teachers and administrator, would be eligible. Teachers and administrators would receive the same payment.

Depending on who would retire, some positions probably would have to be refilled.

"But we would still realize a savings," Dew said. "Let's say the average salary of those retiring is $37,000; we will be hiring at $24,000."