SDEA Members Call on SDUSD to Offer an Early Retirement Incentive As the SDEA Bargaining Commission reviews the data from SDEA’s 140+ Bargaining Input Sessions, it has become clear that bargaining an early retirement incentive (i.e. a “golden handshake” or “SERP”) is a top priority for our members. A SERP [Supplemental Early Retirement Program] is a monetary incentive for a group of eligible members to retire sooner than they may otherwise choose to do, and can generate significant savings for a school district. Would a SERP be cost-effective for SDUSD? Earlier this year, SDEA asked the District to commission a study to answer this question, and the answer is yes. Here is what we learned from the study: • The most cost-effective SERP for SDUSD would likely be a five-year annuity equal to 100% of the member’s current salary. • That annuity would help offset the adverse impact to members’ retirement due to furlough days and deferred raises over the past several years. • The pool of eligibility would likely be all STRS eligible members (members either 55+ years of age with 5 years of STRS credit, or 50-54 years of age with 30 years of STRS credit). Using those criteria, 1,954 of our members would be eligible. • Roughly 547 members would need to accept the SERP for it to be cost-effective and implemented. • Even if the District were to replace every single member who retired, the immediate savings would be roughly $7 million, and the ten-year savings would top $90 million. If the District opted for a lower rehire rate, the savings would be even greater. Why is SDUSD offering a SERP a good idea? Offering a SERP makes sense because it would create real and enduring cost savings to the District, freeing up substantial money to pay for wages, benefits, and educational programs in the years ahead. Absent a SERP, hundreds of SDEA members are planning to wait one more year for the remaining salary restorations to kick in, and then retire. That means the millions of dollars SDUSD will spend on Common Core training next year will be going to train members who aren’t going to use that training. Not only is that bad for our members, it’s bad for our students. Doesn’t it make sense for the District to incentivize those members to retire now, and spend the money training the teachers who will be hired to replace them? It’s also the right thing to do for our veteran members, whose ability to retire with a livable income has been damaged by decreased annual wages during the recession. So what’s the hold up? A SERP is a mandatory subject of bargaining, meaning SDEA and SDUSD have to reach agreement for it to happen. SDEA has requested that the District meet with us to bargain a SERP to be offered this year. So far, SDUSD has not agreed to the come to the table. We need three School Board members’ votes to change that, and we need them soon. What can we all do to make this happen? We can start by contacting our School Board members and asking them to support immediately bargaining a SERP for this year: • Scott Barnett – [email protected] • Richard Barrera – [email protected] • Kevin Beiser – [email protected] • John Lee Evans – [email protected] • Marne Foster – [email protected] Additionally, SDEA members will be conducting accountability sessions with every member of the School Board in the next few weeks as well as other organizing actions in support of SDEA’s upcoming bargaining campaign. To get involved, contact your site Association Representative or reply to this email!
Posted on: Tue, 28 Jan 2014 00:50:57 +0000
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