Teachers’ early retirements have benefits, drawbacks (with detailed teacher profiles)

The seniors in Craig Jelinek's government and economics classes at Prairie High School are counting down to the last day of school.

“They're excited because they're wrapping up 12 years of school,” Jelinek said. “I tell them I've been in school for 54 years.”

Jelinek will retire at the end of 2010-11 school year, one of five College Community school district teachers who will end their tenure under the district's early separation policy.

• RELATED: Profiles of 10 area teachers retiring early

Early retirement programs are a blessing and a burden for Iowa school districts.

“It is a double-edged sword.” College Community Superintendent Richard Whitehead said. “A benefit is it rewards people who decide to come and end their career with us. Second, there is long-term savings because our senior staff tend to make more money than newer teachers. At the same time, you lose some experience, some original history and some talent that you really don't want to lose.”

Corridor school district administrators report that their early retirement numbers are spread throughout grade levels and subjects, leaving no area destitute. Some positions, such as secondary science and industrial technology, will be harder to fill because those areas are already struggling for qualified teachers.

School board members decide annually if they will offer an early separation plan. Districts have standard policies that can be tweaked to fit their needs.

The qualifiers vary by districts, as do the incentives - if they are offered at all.

Jim Pedersen, director of human resources for the Iowa City school district, didn't get a lot of takers for this year's early retirement program.

The standard program grants 70 percent of last year's base salary. Employees must have 20 years of service in the district, the last 10 years consecutive, to qualify.

“This year, the only thing we did different, was go down to 15 years instead of 20,” Pedersen said.

Only 12 teachers and one principal took the offer. Pedersen said it's possible the district will offer an enticement next year, but that hasn't been determined.

“I think that might be the reason why not as many people jumped this year,” he said. “Also, with the economy the way it is, people have to really weigh the decision.”

Dennis Roloff knows that. The Cedar Rapids Kennedy High School industrial technology teacher and girls basketball coach waited until the Cedar Rapids school district's deadline to hand in his early retirement request.

Even then, he didn't turn it in until 2 p.m. The deadline was 4 p.m.

Roloff wasn't planning to retire, but said the district's $25,000 incentive, available for 2010-11 early retirees only, added weight to his decision.

“I talked with other teachers and coaches in the area, and found that some of their incentives were no more than a handshake and a thank you,” he said.

The money was too good to ignore and Roloff joined the 79 district employees who will retire in June.

A total 134 of the district's educators, including 15 administrators, met the incentive's qualifications. Educators had to be age 55 or older with 20 years of non-consecutive service in the district.

The program, which will be funded by the district's share of the Federal Education Jobs Bill funds, results in the loss of 26 early education/elementary teachers, 44 secondary teachers and nine Educational Service Center employees.

The average length of service of the retirees is 26.62 years.

Cedar Rapids Superintendent Dave Benson said the incentive saved the district an estimated $1.028 million in salaries, an average of about $13,357 per teacher. Administrators won't fill most of the vacated positions.

“It's a huge piece of the district's institutional memory that will leave at the end of the year,” Benson said. “They have all helped create the district and made it what it is, and we have to be careful and honor their work.”

Statewide, the percentage of teachers eligible to receive full retirement benefits through the Iowa Public Employees Retirement System increased from 5.6 percent in 1997-98 to 9 percent last year.

To be eligible, teachers must be at least 55 years-old and the sum of their age and total IPERS covered employment is equal to or greater than 88, otherwise known as the Rule of 88.

Using the Rule of 88 as its qualifier, Linn-Mar school board members offered nine early retirement packages this year. Eighteen employees were eligible, but only three educators turned in the paperwork. Two teachers later withdrew their forms.

“I guess I wasn't so surprised because we're seeing a more conservation approach to everything because of the economy,” Superintendent Katie Mulholland said.

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