Buyout offer draws less response than initially estimated
Posted on Thursday, January 17, 2008
It looks like the Fayetteville School District will be waiting until after Jan. 25 to see if participation in its voluntary buyout program for experienced teachers matches expectations.
Educators Preferred Corp., the Michigan-based firm administering the program, had predicted about 70 employees would participate. With eight days left until the deadline to register, the number of employees who have submitted paperwork to participate is less than 25 percent of that amount.
“ So far we have had 17 that have actually submitted the paperwork, ” said Greg Mones, human resources director for the district.
Mones said he anticipates there are some employees who will participate that are currently undecided or haven’t yet turned in their paperwork. He said assumes most of the early submittals were from employees who knew early on they wanted to participate.
Participants have to submit a series of forms to Educators Preferred by mail. The package has to be postmarked by Jan. 25 for them to be eligible, Mones said.
The program has been designed as a long-term cost savings tool, as less experienced teachers earn less under the salary schedule. The Fayetteville Board of Education voted 6-1 to approve the buyout program at its November meeting.
Katy Rose, a vice president with Educators Preferred, could not be reach for comment, but the firm had estimated the district could save up to $ 3. 8 million over eight years based on 70 participants. The projected participation level was based on a formula developed by the company.
Under the voluntary program, experienced teachers who leave the district or retire receive payouts of up to $ 50, 000 over a five- to eight-year period.
District Chief Financial Officer Lisa Morstad has said the money could help cover health insurance costs for retiring teachers. Retired teachers can continue receiving health insurance through the district, but they must pay the full premium.
The minimum levels of experience teachers must have in order to participate are five years of experience with the district and 10 years of participation under the Arkansas Teacher Retirement System. About 347 of the 674 teachers in the district meet or exceed the minimum qualifications.
Mones said employees from the firm met with 65 eligible employees who were considering the program. He said he thinks the firm sent information to all eligible employees.
The district is scheduled to hold two other informational sessions after school on Tuesday and Wednesday.
Upon registering by Jan. 25, the employees have until Feb. 1 to opt out of the program, Mones said.
“ There may be a few who change their mind after (Jan. 25 ), but the number after the 25 th should be pretty close, ” he said.
At the November school board meeting, Educators Preferred representative Tim Bell suggested the buyout program would not prompt experienced teachers to leave unless they were ready to do so.
“ Seventy people elect because it’s time for them to do something else, ” Bell said at the time. “ If they absolutely love what they’re doing, you cannot give them a million dollars (to quit ). ”
FEEDBACK:
Something to say about this topic? Submit a Letter to the Editor online
