Future school district retirees will see fewer retirement benefits if the Janesville School Board approves a new plan at its Tuesday meeting.
The changes come just months after the brokerage firm of Cottingham and Bulter did an analysis of the districts health plan and retirement benefits.
The proposed plan is divided into three parts and is based on the employees retirement date.
- Employees eligible to retire between July 1, 2018, and June 30, 2025, have two options.
They can retain the benefits they have now. Under this system, they can take part in the district’s care plan for three years. They continue to pay the premium, and the district absorbs the rest of the cost.
The plan also allows them convert sick days to $147 day. They can use that money to purchase health insurance, or it can be put into a tax-sheltered account.
A new option which would allow them to receive a payout equivalent to the value of their health insurance and their accrued sick days. If they take this option, they could not remain on the district’s health insurance.
- Employees who are eligible to retire between July 1, 2025, and June 30, 2035, now are eligible to receive two years of the district’s health insurance and payout for their sick leave.
Under the new plan, they would not be eligible for the district’s health care plan but would receive a payout equivalent to the health care costs for two years and a payout of their sick days. Using an average of 90 sick days, the total payout would be about $34,926.
- Employees eligible to retire between July 1, 2035, and July 30, 2045, are currently eligible for a year of district health insurance and a payout of their sick leave.
Under the new plan they would get a payout equivalent to a year’s health care costs and a payout of their sick days. Using the average of 90 sick days, the total payout would be about $24,078.
In other business, the board will hear an update on the district’s promises. The promises are a set of primarily academic goals. Examples include making sure that 90 percent of third-graders can read at grade level by the end of the year and increasing the number of students who take dual-enrollment courses. A dual-enrollment course allows students to receive high school and college credit simultaneously.