Retirement/ResignationRetirement/Resignation

Incentive PlanIncentive Plan

Plan DesignPlan Design 85% of Employee “Base” 85% of Employee “Base”

Pay for 2005-06Pay for 2005-06 Retire or Resign by 6-30-Retire or Resign by 6-30-

06 or 8-31-0606 or 8-31-06 Payments to 403(b)Payments to 403(b) Payments over 5 YearsPayments over 5 Years Current Contract Sick Current Contract Sick

Day Severance also over Day Severance also over Five YearsFive Years

Advantages to EmployeeAdvantages to Employee Provides Assistance Provides Assistance

in making STRS in making STRS Medical Insurance Medical Insurance PaymentPayment

Supplements Supplements Retirement PaymentRetirement Payment

Allows Tax Deferred Allows Tax Deferred PaymentPayment

Advantages to Huron City SchoolsAdvantages to Huron City Schools

Controls Timing of Controls Timing of RetirementsRetirements

Positive Cash Flow to Positive Cash Flow to the District EVERY the District EVERY YEARYEAR

Saves Money for the Saves Money for the DistrictDistrict

ParticipantsParticipants 9 Teachers9 Teachers 1 Administrator1 Administrator

Annual SavingsAnnual Savings Assumes:Assumes:

New Hires will be atNew Hires will be at BA 3BA 3 New Hires will New Hires will

progress through BAprogress through BA ScaleScale All new Hires will beAll new Hires will be at MA 8 in FY 12at MA 8 in FY 12

020000400006000080000

100000120000140000160000

Savings

FY 07FY 08FY 09FY 10FY 11FY 12

Why FY 12 is CriticalWhy FY 12 is Critical HB 66 begins the phase HB 66 begins the phase

out of reimbursement for out of reimbursement for lost Personal Property lost Personal Property TaxesTaxes

Huron will lose $200,000 Huron will lose $200,000 that year in Personal that year in Personal Property Tax RevenueProperty Tax Revenue

This helps replace the This helps replace the loss without going to loss without going to votersvoters

Problems with Normal AttritionProblems with Normal Attrition

Average less than two per yearAverage less than two per year Teachers are staying longerTeachers are staying longer Negative Cash flow consequence in year Negative Cash flow consequence in year

following retirementfollowing retirement We do not control the processWe do not control the process