Sioux City Community Schools -

Code Number: 432

The intent of this policy is to recognize long-term employees for their years of service.

I. Stipend Eligibility

Full-time employees aged 62 or older by the end of the fiscal year, June 30, who have at least twenty-five years of service with the District, and are eligible to begin retirement through the IPERS program, are eligible to participate in this plan upon voluntary retirement from the District.  Years of service will be calculated as of the end of the school year in which they are retiring.  Employees who worked part-time (does not include temporary or substitute work) prior to becoming full-time will be given a partial year credit for part-time years worked. 

An employee must be in a full-time position at retirement in order to qualify.  Full-time employment is defined as 30 hours or more weekly.    

II.    Stipend Schedule

Full-time employees who are otherwise eligible will receive a District stipend based on the sick day balance on their retirement date per the following schedule:

The retiree’s stipend will be paid quarterly beginning in July following the retirement and is subject to applicable taxes.  The stipend will be provided for three years.

III.  Service Definition

Each full-time year of service shall be counted as one full year of credited service toward this benefit.  A partial year of service shall be prorated.  For purposes of this policy only, a break in service (excluding an approved medical leave of absence, periods of military leave, short-term absences due to illness, or maternity leave, which are not considered a break in service), will not be counted. 

Any years where an employee worked part-time, but was at least 20 hours weekly, will be counted as one-half year of credit.  Years where service averaged less than twenty hours weekly will not be counted for service toward this benefit.  Years of service as a substitute or temporary employee will not count toward this benefit.

IV.  Restrictions

If the retiree returns to the District in a full-time position, benefits under this policy will be discontinued.

If the retiree dies prior to receiving the full stipend amount to which he/she would be entitled, any remaining early retirement stipend under this policy will discontinue at the end of the quarter after the death of the retiree. 

This retirement stipend will not be available to anyone whose employment with the District is terminated (voluntarily or involuntarily) prior to the full completion of the academic year. 

V.   Notification Timeline

Any eligible employees who meet the above conditions will need to submit a Notice of Early Retirement form and Application for Early Retirement Benefits by the 15th of January of the year in which they intend to retire.   In no event shall the retirement date be later than the start of the next following school calendar.

Following the date of signing the Notice of Early Retirement form, the employee shall have seven (7) days to revoke the Notice, and the Notice shall not be effective until this seven (7) day period has expired.

I.      Retiree Health and Dental Insurance

Employees who are at least age 55 will qualify for the retiree health and dental insurance plans offered by the District until the policyholder is Medicare-eligible.  The retiree is responsible for paying the full cost of the health and dental insurance premium.  Failure to pay such premiums on a timely basis will result in loss of coverage and will not be reinstated. 

II.    Dependent Eligibility

Dependents must have been on the District’s insurance for at least one year prior to the employee requesting retirement.

C.    Right to Amend

The Board retains the exclusive right to review this policy annually and may amend, alter, or terminate this policy at its discretion for future availability. 

First Adoption:
March 10, 2014

Reviewed Dates:
March 17, 2021/ April 20, 2022/ April 18, 2023

Revision Adoption:
September 8, 2014/ September 28, 2015/ November 28, 2016/ April 12, 2021/ May 8, 2023

Legal Reference:
Morgan v. A.G. Edwards & Sons, Inc., 486 F. 3d 1034 (8th Circ. 2007)
Weddum v. Davenport CSD, 750 N.W. 2d 114 (Iowa 2008)
29 U.S.C. 623(f)(2)(B)(ii), (I)(1)(A)
Iowa Code §§ 216.13; 279.46; 298.4

Documents

• 432 - Early Retirement Benefits

• 432-E - Notice For Early Retirement Letter 432-E Form

• 432-E(i) - Application for Early Retirement Benefits 432-E(i) Form