230 teachers in the Newburgh School District have been offered a special one time bonus if they retire this year. The details of the arrangement are contained in this resolution, which the Board of Education voted on at a special meeting on December 18, 2008.

This is the offer:

WHEREBY, the Association and the District agree to modify the provisions of the 2006-2010 Collectively Negotiated Agreement at Article XXVI(P) Retirement Incentive Plan, by placing a one-year moratorium on the provision as it is written in the 2006-2010 Agreement and for the 2008-2009 school year only, the following provision shall be in effect:

1, For the 2008-2A09 school year only, those unit members who have reached the age of 55 or will reach the age of 55 during the time of the 2008-2009 school year with 15 or more accredited years of service in this School District, shall be entitled to a retirement incentive of 40oh of their last year's compensation, payable in two installments of twenty percent (20%) each installment, provided that notice of retirement to become effective July 1, 2009 is provided by an irrevocable letter of resignation for the purpose of retirement by February 15, 2009 in advance of the July lst retirement date. The retirement incentive shall be paid as a non-elective direct employer contribution into the teacher's Section 403(b) Internal Revenue Code tax sheltered annuity, subject to the cap limitation of Section 415 of the Internal Revenue Code, using a calendar year basis for computing the cap, (See Appendix V).

2. The employer shall pay 20% of said incentive between July lst and December 31st of the calendar year in which the teacher retires and the other 20% in the next following calendar year between July 1st and December 31st thereof.

Article XXVI(P) of the current contract with the Newburgh Teachers' association says:

Article XXVI
...
P. Retirement Incentive Plan.

1. Those unit member upon reaching the age of 55 within a school year, with 15 or more accredited years of service in this School District, shall be entitled to a retirement incentive of 40% of their last year's compensation, provided that notice of retirement to become effective June 30th of that year is provided by an irrevocable letter of resignation for the purpose of retirement by February 1st in advance of the June 30th retirement date. The retirement incentive shall be paid as a non-elective direct employer contribution into the teacher's Section 403(b) Internal Revenue Code tax sheltered annuity, subject to the cap limitation of Section 415 of the Internal Revenue Code, using a calendar year basis for computing the cap. (See Appendix V).
...

Blah, blah, blah. What's the change?

The standing agreement provides for a 40% bonus for teachers who retire at age 55. This year only, all teachers who are 55 or older with the required length of service are eligible for the bonus in the form of two payments of 20%.

Why is this being done?

A letter from District Superintendent Dr. Saturnelli explains that "The District is attempting to reduce the budget for the 2009-2010 school-year by offering a one-time incentive to teachers who are eligible for retirement."

Interested in more details about our contract with the NTA?

Please see this post, which contains a link to a large pdf version of the contract.