Employment of Retirees

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Employment of Retirees

• Friday, July 31, 2009

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Re-employment Changes Effective October 1, 2009

• Session Law 2007-326/HB 956 allows a retired
  teacher to be employed exempt from the cap and
  expires September 30, 2009.
• If a retiree is hired Exempt from the cap in
  August and the sunset is not extended beyond
  October 1, 2009, then the retiree and LEA are
  required to review the retiree status and make
  the necessary employment changes
• Revert to subject to the cap status,
• Resign or
• Come out of retirement to work full-time

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Anticipated Process for 2009-10

• Re-employ retirees Exempt from the cap from
  beginning of school through September 30, 2009.
• Change status to re-employed Subject to the cap
  from October 1 through the last workday prior to
  the Winter break.
• In order to document a break in service and not
  continuous service in the same position for 6
  consecutive months or more, we will process a
  separation of employment effective the last
  workday prior to the Winter break.
• Re-employ retirees Subject to the cap from
  January 4, 2010 through the last workday of the
  2009-10 school year.

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Anticipated Process continued

• By September 10, 2009, the Retirement System
  Division must be notified of the change in status
  of the retiree so that health insurance coverage
  can be changed from LEA provided to Retirement
  Plan provided.
• New State Health Plan Retiree Group
  Enrollment/Change Form, Form HM
• Letter from the employer (GCS) stating that we
  will no longer pay for the retirees health
  insurance.

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Anticipated Process continued

• Retiree will receive 3 letters of employment and
  2 Interim contracts for the 2009-10 school year.
• Letter of employment indicating Exempt of the cap
  from beginning of school year until September 30.
• Letter of employment indicating Subject to the
  cap from October 1 until the last workday prior
  to the Winter Break.
• Letter of employment indicating Subject to the
  cap from January 4 until the last workday of the
  school year.
• Interim contract from the beginning of the school
  year until the last workday prior to the Winter
  Break.
• Interim contract from January 4 until the last
  workday of the school year.

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Retirement Earnings Cap

• The cap is either half of your earnings from the
  12 months preceding your retirement (excluding
  any lump sum payouts for leave or longevity) or
  28,080.00, whichever is greater. The latter
  amount is adjusted each January to compensate for
  increases in the cost of living, as indicated by
  the national consumer price index.
• This is the amount that you can earn while
  working Subject to the cap during a calendar
  year.

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Salary and Benefits

• While Exempt from the cap.
• Paid on the Retiree Teacher salary schedule which
  is less than the regular teacher salary schedule.
• Full benefits including health insurance, annual
  leave, sick leave, personal leave, and longevity.
• While Subject to the cap.
• Paid on the Regular Teacher salary schedule.
• No benefits.
• Health Insurance through Retirement System
• No holiday pay.
• No annual leave
• No sick leave
• No personal leave
• No Longevity

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Salary and Benefits continued

• August and September paychecks will be based on
  Exempt status and Retiree Teacher salary
  schedule.
• Paid out for unused annual leave and pro-rated
  longevity based on the salary when terminating
  Exempt status.
• Pending legislation may eliminate longevity
  payment for 2009-10.
• Paid only for days worked once status is changed
  to Subject to the cap.

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Thank You

• Thank you for attending this important
  information session.
• Shirley Morrison, Interim Chief HR Officer
• morriss_at_gcsnc.com [phone]
• Alison Yates, Director of Staffing
• yatesa_at_gcsnc.com [phone]
• Stephen Foster, Executive Director-HR Operations
• fosters_at_gcsnc.com [phone]
• Patty Kinkade, Director of Benefits
• kinkadp_at_gcsnc.com [phone]
• Steve Friddle, Director of Payroll
• friddls_at_gcsnc.com [phone]