WACO board approves offering early-retirement incentive

BY BROOKS TAYLOR

Mt. Pleasant News

WAYLAND ? The WACO School Board agreed to offer early-retirement incentives. However, the offer will not be made every year.

The district has offered early retirement in the past, but that?s been several years.

WACO directors, meeting in regular session Monday night, were told that if they did offer early-retirement, the policy would have to be changed. Current policy language says applications for early retirement must be received by Jan. 1. Following discussion, the board agreed to amend the policy from a Jan. 1 to a March 1 deadline.

Superintendent Fred Whipple urged the board to consider making early retirement available, largely as a cost-cutting measure, but not to make it an annual event.

?You have to keep it as an incentive,? Whipple said, ?and if you do it every year, it becomes an expectation.?

The financial benefit of early retirement is two-fold. First, those taking the benefit would be faculty members ranking high on the salary schedule. Secondly, money for early retirement benefits isn?t taken from the general fund, the fund from which regular school salaries and benefits are paid. Early-retirement funds are paid from the management fund, Whipple noted.

WACO?s early retirement policy provides enrollees a choice of two payment options.

Retirees can receive a monthly payment beginning the first month of retirement and continuing to a maximum of 120 months or to age 65. The monthly cash payment will be equal to one percent of the annual salary received by the retiree during the fiscal year immediately preceding retirement. That means if the employee received an annual salary of $47,000 during the final year of employment, the monthly payment would be $470.

Or, the retiree may continue in the district?s group health insurance (including dental and vision) for a maximum of 120 months or through the month the retiree turns 65 years of age. WACO?s current health-insurance premium for single coverage is $531.89 per month. If the retiree wants family coverage, he or she must bear the difference in cost.

In the past, most early retirees have taken the insurance option, school officials said.

To qualify for early retirement, the faculty member must be between the ages of 55 and 65 on or before June 30 of the year in which the employee wishes to retire, and have completed 15 years of service as a full-time district employee, with the last 10 years being consecutive.

The school board can either approve or reject early-retirement applications.

Board member Amy McLaughlin said she doesn?t want the district to offer the benefit annually. ?I think we can offer it this year and then not do it again for three years.?

Whipple predicted five people ?at the most? would apply for early retirement, but quickly added he thinks the number will probably be around three.

?If the retiree takes the monthly payment benefit, you are talking about $4,700 per year per person. However, if they take the insurance, it will be more like $6,000 a year per person,? Whipple explained.

The savings benefit would be that a teacher making close to $50,000 annually would be retiring and could be replaced by a new teacher. WACO?s base teaching salary is $28,860 per year.

Consequently, if the retiree collected $6,000 for health insurance and a first-year teacher was hired as a replacement, the district would save about $15,000 in salary costs. Because the early-retirement benefit is paid through the management fund, the district would save $50,000 (the retiree?s salary) in the general fund.

The board will consider early-retirement requests during its March meeting.

In other agenda items, the school board now is having second thoughts on propane-powered school buses. The board had requested bids for six new propane-powered buses to replace six buses coming off lease. Directors are reconsidering because the price of a propane bus is considerably higher than gasoline powered; uncertainty over availability of propane during school trips; gas mileage; and the district would have to spend around $10,000 for a propane tank and related equipment.

Woody Harden, district transportation director, presented two bids for the lease of six propane buses. Thomas Bus Sales of Iowa had the low bid of an annual lease payment of $85,135.37 for the six buses. School Bus Sales of Iowa, which sells Bluebirds, bid an annual lease payment of $90,888. Both companies use Ford chassis.

Harden told the board that gasoline buses get about six miles per gallon of gas while propane buses run between four and four-and-one-half miles per gallon. However, there currently is a 36-cent per gallon rebate on propane purchases.

?Your fuel costs would be $200 per month with the propane rebate,? Harden told the board.

Whipple suggested rejecting the bids and re-bidding the buses. ?I think you should re-bid it with propane and gas. Your payments would be a lot less with gas and you would not have to purchase the propane equipment.?

The board agreed and will discuss both gasoline and propane buses at its March meeting.

In the lone personnel matter, the board approved a contract for Tyler Kibbee as head girls? track coach. Kibbee will be paid $2,310.

Directors will meet again in regular session on Monday, March 21, at 6:30 p.m., at the secondary building in Wayland.