2012-2013 Retirement Commitment Incentive Update: 2012-2013 Retirement Commitment Incentive Chief of Staff and Compliance Johnny Giles May 2, 2013

Retirement Commitment Incentive Initially Offered Oct 2012 What: Voluntary pay incentive for candidates who make early notification (by 15 March 2013) of intent and commitment to retire at the end of the current school year. Incentive increases the earlier candidate makes notification. Intent: Plan for projected vacancies to ensure earliest hiring actions and prevent sudden classroom/critical certified vacancies in our schools Includes: Teachers, Counselors, Librarians, Assistant Principals Eligibility: Must have 10 years creditable service and at least sixty (60) years of age, OR Must have twenty-five (25) years of creditable service, regardless of age

Retirement Commitment Incentive Result: 61 certified employees provided early notification to HCS of their intent to retire at the end of the 2012-2013 school year Impact: District was able to plan for projected vacancies and began the interview / hiring process two months earlier than last year. Retirement eligible teachers were able to make long-term plans and will receive a cash benefit for notifying HCS in advance Finance will run a Special Payroll on June 16, 2013 to direct deposit the Incentive to the employees’ accounts.

Retirement Commitment Incentive ARI Reading Coach 1 Art 2 Choral Music Collaborative Coordinator Collaborative Secondary Counselor CT T&I Prep Curriculum Specialist Drivers Education Early Childhood Special Ed Elementary (K-6) 19 ESL Teacher Health Kindergarten 4 Latin 1 Librarian 6 Math PE/Health 2 Physical Education 4 Psychometrist ROTC Instructor ROTC-Air Force ROTC-Army Science Special Education Collaborative Special Education Early Childhood Special Education Gifted Speech Pathologist Total: 61 Certified Employees from 34 Schools

Backup Slides

Retirement Commitment Incentive (continued) Commitment: Must commit to complete the full current school year with an effective retirement date of June 1, July 1 or August 1, 2013. Compensation: 6%-10% of base salary (1% base salary times multiplier for earlier notifications). Available to all eligible candidates, even if individual has already reached top step on salary schedule. Payment: Lump sum in paycheck before the final month of employment*. Limited opportunity: First 100 applications to Human Resources Begin taking applications November 1, 2012 (no earlier) Increased benefits for earlier notification/commitment Must be Board approved * NOTE: Does NOT count toward retirement (change from previous briefing after legal review)

Retirement Commitment Incentive EXAMPLE: (Base Salary x 1% x timeliness multiplier) Notification Date (On or before) Base Salary 1% Base Timeliness Multiplier Total Benefit 15-Nov-12 $55,000.00 $550 10 $5,500.00 14-Dec-12 9 $4,950.00 15-Jan-13 8 $4,400.00 15-Feb-13 7 $3,850.00 15-Mar-13 6 $3,300.00 After 15-Mar-13 NO BENEFIT Total Cost: $XXXXXXX (Average: $XXXXXX per employee)