POLICY TITLE: Early Retirement POLICY NO:

403.15
Minidoka County Joint School District # 331 PAGE 1 of 5

Minidoka County Joint School District No. 331 extends to all full time certificated employees an
incentive for voluntary early retirement.

AMENDMENT

Effective the 1996-97 school year, Policy #403.15 will be amended to provide that Minidoka
County School District #331 will only compensate employees for the difference between the
State of Idaho early retirement incentive compensation (I.C. 33-1004G) and the District #331
early retirement compensation.

SUNSET PROVISION

Effective June 30, 1997, Policy #403.15 will be rescinded and District #331 will no longer offer
a district early retirement incentive plan. The district will sunset policy #403.15 due to a lack of
funding imposed by the State of Idaho salary apportionment provisions. The provisions do not
allow the district to use salary differentials between retiring and replacement employees to fund
early retirement plans.

Provisions:
The following provisions are delineated:
1. Any full time employee in Minidoka County School District No. 331 shall be eligible if:
a. He/she has at least ten (10) years of full time service in Minidoka County Joint
School District No. 331, and
b. He/she has or will attain the minimum age of fifty- five (55) by April 15th of the
school year during which the application is made, or is eligible for full service or
disability retirement under current state law, and
c. He/she is contracted/on agreement for the current school years and is not currently
on probation or suspension.

2. Application/Approval Process:
A certificated/classified employee who is eligible to participate in this program, must
make written application directly to the Superintendent by April 15th, of the year of
retirement. The district will then offer the employee an agreement with such terms as is
agreeable for termination of services and payment of an early retirement incentive.

3. The early retirement incentive (ERI) shall be calculated as follows:

a. The incentive for certificated personnel will be calculated on the base salary
located in column 1 step 1 of the current years certificated salary schedule. the
incentive for classified personnel will be calculated on the base salary located in
column 1 step 1 of the current years classified salary schedule.
b. The percentage of the base salary to be used in calculating the ERI will be a
function of age and the following chart will give that percentage:
55-60 80% of the district's base salary schedule
61 65% of the district's base salary schedule

SECTION 400: STAFF INDEX

EARLY RETIREMENT—continued Page 2 of 5

62 50% of the district's base salary schedule

63 35% of the district's base salary schedule
64 20% of the district's base salary schedule

c. For illustrative purposes the following calculations are used as examples.

Certificated
<Certificated Teachers-Base Salary>
Column 1 step 1 = $18,000 year.
Employee is age 60 on April 15, current yr.
Employee wishes to retire after fulfilling present contract.

Base salary x percentage = ERI

$18,000 x 80% = $14,400
Early Retirement Incentive = $14,400
Classified:
<Classified Employee-Base Salary>
Column 1 step 1 = $4.49 hour.
Employee is age 58 on april 15, current yr.
Employee wishes to retire after fulfilling present agreement.
Employee works seven (7) hours a day for 184 days.

Base salary x percentage x 7 hours a day x 184 = ERI

$4.49 x 80% x 7 x 184 = $4,626
Early Retirement Incentive = $4,626

4. The district shall pay the employee the sum of $ pursuant to the Early
Retirement Incentive Policy of the district as follows:
a. Payment may be made in either of the four options:
1) Lump sum payment on September 25th of the year of retirement
2) Lump sum payment on January 25th of the year following retirement
3) Deferred compensation - funding of accounts eligible of tax deferment
4) Payment by special arrangement

5. It is understood that for this incentive to be effective the employee must be eligible as
policy describes in Section 1. As part of his/her voluntary early retirement and the
payment of the incentive, employee hereby waives all rights he/she may have to further
employment or benefits with the district.

6. By action of the Board of Trustees, when unusual circumstances exist, certain eligibility
requirements may be waived upon recommendation by the Superintendent.
♦♦♦♦♦♦♦
LEGAL REFERENCE: Idaho Code
ADOPTED: March 1993
AMENDED/REVISED: August 20, 1996

SECTION 400: STAFF INDEX

EARLY RETIREMENT—continued Page 3 of 5

AGREEMENT TERMINATING EMPLOYMENT

MINIDOKA COUNTY JOINT SCHOOL DISTRICT NO. 331

TERMINATION AGREEMENT, MADE THIS day of ,

between SCHOOL DISTRICT NO. 331 in Minidoka county, Idaho, hereinafter designated as the

District, and , ,

Idaho, hereinafter designated as “Employee”.

WITNESSETH:

WHEREAS, the Board of Trustees of the district adopted an Early Retirement Incentive

Policy which allows certain employees to retire prior to age 65 and to receive a cash incentive

from the District, the amount of which is dependent upon the age of the employee at the time of

his/her early retirement, and,

WHEREAS, Employee has made written request to the District, dated April 15, ,

whereby he/she has applied for early retirement pursuant to the Early Retirement Incentive

Policy adopted by the District, and,

WHEREAS, the parties desire to enter into a written agreement concerning the

termination of employment and payment of the ERI>

NOW THEREFORE: IN CONSIDERATION OF the mutual promises and covenants

herein contained, IT IS AGREED between the parties as follows:

1. The District accepts the Employee's application for early retirement and the Employee's
employment with the District shall terminate on the last day of their current
contract/agreement for the school year.

2. The district shall pay the Employee the sum of $ pursuant to the Early
Retirement Incentive Policy of the District as follows:
1. Lump sum payment on September 25th of the year of retirement
2. Lump sum payment on January 25th of the year following retirement
3. Deferred compensation – funding of account eligible of tax deferment
4. Payment by special arrangement as listed below:

SECTION 400: STAFF INDEX

EARLY RETIREMENT—continued Page 4 of 5

3. It is understood that for this grant to be effective the employee must be eligible as policy
describes in section one (1). As part of his/her voluntary early retirement and the
payment of the incentive policy, employee hereby waives all rights he/she may have to
further employment and benefits with the district.

IN WITNESS WHEREOF, the parties have signed this agreement on the date mentioned
above.

MINIDOKA COUNTY JOINT SCHOOL DISTRICT NO. 331 IN MINIDOKA COUNTY,

IDAHO

By
Chairman, Board of Trustees Employee

ATTEST
Clerk of the Board

SECTION 400: STAFF INDEX

EARLY RETIREMENT—continued Page 5 of 5

APPLICATION FOR EARLY RETIREMENT

EMPLOYEE'S NAME Social Security #

DATE OF PROJECTED RETIREMENT

PERCENTAGE OF BASE SALARY QUALIFIED FOR (CHECK ONE)

Age 55-60 80% of Base Salary

Age 61 65% of Base Salary

Age 62 50% of Base Salary

Age 63 35% of Base Salary

Age 64 20% of Base Salary

OPTIONS FOR PAYMENT (CHECK ONE)

Lump sum payment on September 25th of the year of retirement

Lump sum payment on January 25th of the following year of retirement

Deferred compensation - funding of accounts eligible of tax deferment

Payment by special arrangement as listed below:

EMPLOYEE SIGNATURE DATE OF APPLICATION

** This application must be received by the district office no later than April 15th of the year of
retirement.

SECTION 400: STAFF INDEX