SCHOOLS CONTRACT Retirement incentive explained to workers

Those eligible for the bonuses must announce their retirement by June 15.
By SHERRI L. SHAULIS
VINDICATOR TRUMBULL STAFF
NILES -- School employees interested in learning more about a retirement incentive bonus the board of education offered in the most recent contract will meet with state representatives today to get the details.
Officials from the state School Employees Retirement System will meet today with members of Ohio Association of Public School Employees Local 365 who are eligible for the program.
"We have about 18 people who signed up for the meetings, and many are taking their spouses," said Debbie Simini, president of the OAPSE union, which represents bus drivers, secretaries, cafeteria workers and more in the Niles school district.
Because the incentive bonus could be a different amount for each employee, Simini said SERS representatives agreed to meet with union members to explain individual situations.
In a two-year pact approved earlier this month by the union and the board of education, eligible union members can take advantage of a one-time retirement incentive, provided enough employees agree to the deal by June 15.
It's a cost-cutting measure used by the board and school officials to reduce staffing levels through attrition, thereby saving money through salaries and health-care benefits.
Teachers' deal
A similar deal was struck last year with the Niles Classroom Teachers Association during contract talks.
In that case, eight eligible union members needed to retire by the end of the school year to qualify for a $15,000 payout.
Different from the teachers' version of the bonus, however, is who qualifies and how much they will be paid, according to the new contract.
With the nonteaching staff, four employees with at least 10 continuous years of service must announce by June 15 their intent to retire into SERS.
Union members who are eligible for retirement by Sept. 1, 2004, or June 30, 2005, can take advantage of the bonus, the contract says.
The payout for each union member is based on their salary and the number of hours they work each week, as well. The bonus will be 85 percent of the difference between the highest and the lowest salary for each job classification, and will be prorated for employees who work fewer than 40 hours each week.
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For example, if the high school's head custodian were to participate in the bonus program, the highest salary for the full-time job is $31,262.40 per year, while the lowest salary is $21,132.80, making a difference of $10,129.60.
At 85 percent of that amount, he or she would be paid $8,610.16 under the conditions of the program.
However, the contract states that, if six employees agree to the retirements, the percentage of the payment would increase to 100 percent, and if eight people participate, it would increase to 115 percent. In the case of the head custodian, that would mean a payout of $10,129.60 or $11,649.04, respectively.
slshaulis@vindy.com