Dist. 428 can save $103K in penalties
October 29, 2003
In 2005, DeKalb School District 428 can save $103,844 in penalties if retiring teachers receive the additional year of sick leave they are requesting, bringing the total allowed to two years.
The increased sick leave would not cost the district anything, but would benefit the district and retiring teachers in savings from penalties, as well as taxpayers in extra money available to the district, said Bonnie Kersten, math teacher at DeKalb High School and co-chief negotiator for the DeKalb Classroom Teachers’ Association (DCTA).
In January, the state passed a bill allowing the collection of 370 sick days, or two years’ worth, which can be used toward a teacher’s pension. Before the bill was passed, 185 days, or one year, could be accumulated. The bill would allow for the exemption of penalties for those retiring teachers who accumulate more than 35 years of service because of the sick days.
A letter of agreement means the teachers and district agree when a law changes in the middle of a contract. If passed, the letter of agreement could be negotiated into the teachers’ new contract after the current one expires in 2006.
The DCTA has been trying to get the agreement passed since January, even though the language was not finalized until March, but has been unsuccessful in attempts to gain the attention of the school board, Kersten said.
At the Oct. 20 school board meeting, the legal language was presented during the hearing of the citizens in hopes that it would see its way onto the agenda of the next meeting, Kersten said.
Even though the 185 work days prior to the 2005 teacher retirements have already begun, the sick days still can be granted if the school board acts very soon, Kersten said.
The district wants to look into potential negative impacts, both financial and personnel related, before making a decision, said Jed Dunbar, human resources assistant superintendent for the district.
Dunbar said inquiries are being made about how other districts are handling the two-year sick leave issue, and some are proceeding with caution.
School District Superintendent Brian Ali said some other districts have allowed for the two-year sick leave while others have not, but many are in the same decision-making position as DeKalb.
“[The school board will] take an honest look at it, and if there are issues there that are in the best interest of the district, I think they will give it serious consideration,” Dunbar said, adding he did not speak for the board.
Ali said dealing with sick leave is a matter of prioritizing the board’s issues. District 428 works in a different way then most others, Kersten said. Some years back, during an economic downturn, teachers accepted unlimited sick days in place of a pay increase. This means that teachers in District 428 do not roll over sick days like most districts, but instead begin each year with 185, or unlimited sick days.
Because of an Early Retirement Option (ERO) on the state books until 2005, the district has to pay a penalty for teachers retiring with more than 34, but less than 35 years of service if they are under 60 years of age. The penalty includes 20 percent for each year or partial year the teacher is shy of 60.
The retiring teacher also must pay a penalty, which is based on years or partial years shy of 60 years old or 35 years of service, whichever is less, at a rate of 7 percent.
Teachers may be able to retire as early as 55 years old. If teachers are over 60, or have more then 35 years of service at the time of retirement, the district does not have to pay any penalties per the ERO.
An extension of the ERO until 2010 already has been passed by the House, and is expected to reach the senate floor during the fall session, Kersten said.
Of the 14 teachers retiring in the district in 2005, seven qualify for the ERO. If the additional year of sick leave is passed by the district, two of those teachers would then have more than 35 years of service credit, and the district would be exempt from paying penalties to the state for those teachers. If the agreement is not passed, the teachers would fall in the range penalized by ERO, and the district would have to pay.
The penalties for those two teachers alone is $103,844. This does not include the money the district saves by hiring new teachers with less experience at reduced salaries, Kersten said.
The additional year’s worth of sick days would only be applied to teachers who have committed to retiring, Kersten said. Teachers who wish to retire must commit two years prior to retirement.
Kersten said she hopes the school board will pass the letter of agreement, and soon; teachers have put in many years of service,and deserve this because it will help everyone, she said.