LCSD1 offers early retirement incentives to reduce costs

Wyoming Tribune-Eagle (Cheyenne, WY)

Feb. 22--CHEYENNE -- Experienced teachers in Cheyenne may soon be retiring in a bunch. Laramie County School District 1 is offering early retirement incentives to qualifying employees this spring.

Marc LaHiff, LCSD1's assistant superintendent of human resources, said, "Not that we want to lose our veterans, but with the financial crisis we're facing, if we can have somebody retire and not replace them, then we save their full salary and benefits." He added that veteran teacher replacements may be newer teachers who can be paid less.

One of the incentives is to offer a cash bonus equaling 14 percent of their annual base salaries.

LaHiff said, "It would be the salary they're currently receiving without any extra add-ons. For example, if they were a high school football coach, that would be a differential pay system that adds to their salary." The cash incentive would not include 14 percent of that added pay, he said.

LaHiff added that employees only qualify for that incentive if they've worked with the district for 20 or more years, or if they meet the "rule of 80," meaning their years of service added to their age equals 80 or more.

"The state requires the 'rule of 85' to get into the retirement system, but for this one, Mr. (John) Lyttle (LCSD1 superintendent) wanted to offer it to people who may be interested in retiring but not quite at that state retirement age," LaHiff said.

He explained that if the employees choose to take their retirement from the state rather than taking a different job for a few years, they will take a small deduction on their pension.

LCSD1 is offering a second incentive in the form of $500 toward monthly insurance premiums until the employee turns 65.

That incentive requires that the employee meet the "rule of 85" and have worked for the district for at least 10 continuous years before retirement.

Employees also could qualify for the insurance incentive, however, if they have been employed by the district for 20 years with at least 10 continuous years before retirement.

LaHiff told the LCSD1 Board of Trustees on Tuesday evening that people are eligible for Medicare at 65, which is why the district would pay the premium until that age.

Barb Cook, a kindergarten teacher at Cheyenne's Deming Elementary, will retire this spring, though not with the early retirement incentives.

She said the $500 insurance incentive will cover almost all of the $549 monthly premium for employees.

Cook said she believes many people will consider retiring this year because of the incentives. She would have considered it if she weren't already retiring, she said.

LaHiff said it's not yet clear how much money the district may lose in cuts following the current legislative session, but district officials believe it will fall somewhere between $6.5 million to $13 million a year.

The district's annual budget is around $200 million. "So it doesn't sound like it's a huge amount, but we are a labor-intensive business," LaHiff said.

He said that is part of district officials' hope with the early retirement incentives as well. "We certainly value our veteran folks, but we have to make cuts somewhere. A veteran teacher could retire, and it may save the job of an initial contract teacher," he said.

The board of trustees voted unanimously to offer the incentives, and employees can accept the incentives to retire this spring beginning today through March 8.

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