The school board hopes the plan will reduce payroll costs for the district.
McDONALD —The McDonald school board has approved a new early-retirement incentive plan for teachers.
The plan replaces one adopted by the board in May 2007.
The new plan calls for a one-time payment of $14,775 for teachers who take the incentive for the 2008-09 school year, the 2009-10 school year and the 2010-11 school year.
The old plan covered the 2007 to 2010 school years and gave teachers who retired early a bonus of declining amounts each year. The bonus was $20,000, paid in installments, for those who retired in the 2007-08 school year, $14,775 for those who retired in the 2008-09 school year and $9,850 for those who retired in the 2009-10 school year.
School Treasurer Thomas Radabaugh said this will be the last early-retirement incentive to be offered by the board “for the foreseeable future.”
The incentives to be offered under the new bonus plan will be: one payment of $1,500 in August of the retirement year and 59 payments of $225 from starting in September and continuing for five years for a total of $14,775
Employees must give their resignation by Jan. 31 and leave between May 31 and June 30 of the school year in which they retire.
The early-retirement incentive is limited to 10 percent of the district’s 56 teachers.
Radabaugh said the plan saves the school district money by replacing teachers at or near the top of the pay scale with starting teachers who make less money.
Retiring teachers will also be eligible for severance pay, based on being paid for up to 25 percent of unused sick days, with a maximum of 80 days.