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[Le Mars Daily Sentinel]
Le Mars, Iowa ~ Wednesday, May 14, 2008
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LCS board waives early retirement requirement

Thursday, March 20, 2008

Le Mars Community School board members gave their approval to a waiver of Board Policy 405.1 concerning early retirement at their Monday meeting in response to a request from teacher Terry Lane.

Lane, who will complete his 32nd year with the school district in May, requested the board waive the age 55 clause to allow him to retire at the end of the school year, even though he won't turn 55 until the second day of workshops for the 2008-09 contract year. As part of the early retirement policy, the district provides medical coverage at the district expense for the employee until they reach the age of Medicare eligibility.

Superintendent Dr. Todd Wendt told the board he recommended approving the request.

"My recommendation is, because of the current budget situation and the way things look for next year, that you give consideration to waiving that age 55 requirement," Wendt said, "not only for Mr. Lane but make it available for other 54-year-olds as long as they notify us before March 31."

"Considering the current situation with the budget for next year, if you are able to entice a few more to do that, it would be beneficial for our budget situation," he continued. "Normally I wouldn't recommend that you do anything different than what your policy says. It's very clear, 'after reaching the age of 55'," he said.

Board members discussed the potential savings to the district, which could be between $15,000 and $25,000 per employee, depending on the position and experience.

The March 31 deadline would allow the board to plan for teacher replacement and certify the budget by April 15.

Wendt also recommended the board open the offer to any certified staff member who's currently 54 years of age, and may wish to take advantage of the opportunity.

"If we open it to all in that age group, we're not changing policy," board member Patrick Murphy said. "This is simply a modification for one year for adequate reasons for doing this."

"We're not begging people to leave the district," Murphy continued. "It's a judgment call for the individual. They can't draw IPERS (Iowa Public Employees Retirement System) until they're 55."

Wendt then suggested the board set the age deadline as those who turn age 54 by the end of the 2007-08 contract year.

"It's important to set that date," board member Dan Smith said.

Following the discussion, the board approved a motion to waive the early retirement policy age 55 requirement, with those reaching age 54 by the end of the 2007-08 contract year eligible to retire, by giving notice to the district by March 31. The motion also included that the board was waiving policy due to budgetary concerns for the 08-09 fiscal year and this is a single waiver of Board Policy 405.1. All other requirements of the policy remain as stated.

The motion was approved with all board members voting yes except Dan Smith, who abstained.



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