Mid-Year Early Retirement Incentive Meeting UACT and CVUSD Friday, November 6, 2009

Eligibility Worked for CVUSD at least 15 years and be at least 55 years old Worked for CVUSD at least 15 years and be at least 55 years old Submitted a request to retire not later than Tuesday, December 1, 2009 for your retirement to commence at the end of the Fall Semester – Friday, January 22, 2010 Submitted a request to retire not later than Tuesday, December 1, 2009 for your retirement to commence at the end of the Fall Semester – Friday, January 22, 2010 Note: Your STRS retirement application must be received by the STRS office prior to your intended day of retirement to be accepted by STRS Note: Your STRS retirement application must be received by the STRS office prior to your intended day of retirement to be accepted by STRS

Option 1: Early Retirement Incentive Last day in the classroom is Friday, January 22, 2010 Last day in the classroom is Friday, January 22, 2010 Health Benefits end March 31, 2010 Health Benefits end March 31, 2010 Lump sum payment no later than Lump sum payment no later than July 30, 2010 July 30, 2010 The District will deduct appropriate taxes and any other required withholding from the lump sum payment. The District will deduct appropriate taxes and any other required withholding from the lump sum payment.

Option 2 Emeritus Teaching Continue teaching until the end of the school year Continue teaching until the end of the school year Receive five days of sick leave – no cash value, may not be donated, and may not be used to obtain additional retirement credit Receive five days of sick leave – no cash value, may not be donated, and may not be used to obtain additional retirement credit Eligible for bereavement leave Eligible for bereavement leave Continued insurance coverage through Continued insurance coverage through September 30 September 30 Begin receiving STRS payments, so STRS deductions will no longer be taken from the paycheck. Begin receiving STRS payments, so STRS deductions will no longer be taken from the paycheck.

Option 2 Emeritus Teaching The emeritus employee’s compensation during the Spring semester shall be determined by dividing $22,000 by the five pay periods remaining in the school year or $4,400 per pay period. The emeritus employee’s compensation during the Spring semester shall be determined by dividing $22,000 by the five pay periods remaining in the school year or $4,400 per pay period. Emeritus employees working extra duty assignments, including coaching, department chair, additional periods, or other extra duties shall be paid the same stipends, and on the same schedule as active employees. Emeritus employees working extra duty assignments, including coaching, department chair, additional periods, or other extra duties shall be paid the same stipends, and on the same schedule as active employees. Both emeritus compensation, and any extra duty compensation will count against the STRS maximum annual compensation for retirees for the fiscal year. Both emeritus compensation, and any extra duty compensation will count against the STRS maximum annual compensation for retirees for the fiscal year. Receive the same lump sum payment with appropriate withholding, including the Medicare payroll tax. Receive the same lump sum payment with appropriate withholding, including the Medicare payroll tax.

Calculating the Lump Sum Payment The lump sum payment will be the difference between what the employee would have earned had he/she worked the Spring semester and $22,000. The lump sum payment will be the difference between what the employee would have earned had he/she worked the Spring semester and $22,000. This only includes the employee’s base salary on the salary schedule and does not include extra duty pay associated with coaching, department chair, additional periods, or other stipends. This only includes the employee’s base salary on the salary schedule and does not include extra duty pay associated with coaching, department chair, additional periods, or other stipends.

Calculating the Lump Sum Payment For example: Annual Salary: $76,060 (Step 19, Column 4) Spring Semester: $38,030 Spring Semester less $22,000 $38,030 - $22,000 = $16,030 The lump sum payment would be $16,030.

Compare Your Options Early Retirement Finish Friday, Finish Friday, January 22, 2010 January 22, 2010 Insurance ends in March Insurance ends in March Lump Sum Payment in July Lump Sum Payment in July Additional free time Additional free time Emeritus Teaching Finish the end of the year Finish the end of the year Insurance ends in September Insurance ends in September Lump Sum Payment in July Lump Sum Payment in July Additional income: $4,400 monthly plus STRS Additional income: $4,400 monthly plus STRS

STRS 30/31/32 year bonuses 30 years $200/month 30 years $200/month 31 years $300/month 31 years $300/month 32 years $400/month 32 years $400/month Must have 30 or more years prior to December 31, 2010 to qualify Must have 30 or more years prior to December 31, 2010 to qualify

REMEMBER…….. Your STRS retirement application must be received by the STRS office PRIOR to your intended date of retirement to be accepted by STRS. Your STRS retirement application must be received by the STRS office PRIOR to your intended date of retirement to be accepted by STRS. Please remember, STRS employees are taking furlough days each month so don’t wait until the last minute. Please remember, STRS employees are taking furlough days each month so don’t wait until the last minute. Check with STRS for your specifics- years of service, sick days, etc. Check with STRS for your specifics- years of service, sick days, etc. Know your years of service- check and double check- clarify if there are issues Know your years of service- check and double check- clarify if there are issues Talk to a financial advisor- 403B, social security offset, other investments, consider everything. Talk to a financial advisor- 403B, social security offset, other investments, consider everything. Can you live on your pension? Give this question a lot of thought Can you live on your pension? Give this question a lot of thought

For More Information… Go to and log in to calculate your retirement. Go to and log in to calculate your retirement. The law has been changed. After this year, teachers must be 60 to take advantage of the mid-year retirement option. The law has been changed. After this year, teachers must be 60 to take advantage of the mid-year retirement option. The IRS is looking into the mid-year retirement option. We can make no guarantees after this year. The IRS is looking into the mid-year retirement option. We can make no guarantees after this year.