ERIP Recap

From BucksLocalNews.com

Morrisville School District approves early retirement plans
By Petra Chesner Schlatter, Staff Editor Posted on Thu, Apr 9, 2009

The Morrisville School Board has approved on an early retirement incentive plan (ERIP) for eligible staff members.

Six board members voted yes and two members, Robin Reithmeyer and Gloria Heater, dissented. Al Radosti was absent from the meeting.

Heater said the district would not save enough money by offering the retirement package.

Reithmeyer protested the motion, alleging that Board President Bill Hellman had made a deal with the union without the full board’s knowledge.

This is the first time the Morrisville School District has offered an early retirement plan to district employees. The incentive was not part of the original collective bargaining agreement, but was added as an amendment by the school board’s vote.

At least nine people are expected to take the package.

After the meeting Board Member Jack Buckman said, “The teachers want to have a health care plan for a number of years. Usually, a health plan doesn’t go with you. We agreed to that.”

According to Buckman, the package will save the district money, but it ends on how many people accept the deal and if the district has to replace the retiree.

“When you replace one employee,” he said, “You usually get them for less money. The other ones were here so long; they’re on the top of the salary range.”

Paul DeAngelo, the district’s business administrator, said every teacher’s salary is included in the 2009-10 Preliminary Proposed Budget. However, he did not factor the ERIP program into the budget.

To be eligible for the ERIP, permanent professional employees must have 15 years of service. In addition, participants would be required to retire on June 30.

Under the plan, there are two options for participants.

The first is a lump sum payment with two cash payments between September 2009 and January 2010.

If three people take the plan, they would receive $25,000 each. If three to five take it, they would each receive $40,000. If six to eight take it, they would each receive $50,000. For nine or more retirees, they would each receive $70,000.

The second option would be medical premium reimbursement up until age 65 with caps on the total premiums.

Teachers have until April 30 to notify the school district if they want to take early retirement.

Drew King, president of the Morrisville Education Association, said last month that he had presented some information to the school board president to initiate discussion on a possibility of an early retirement package.

Governor asks for merger study:

Meanwhile, the issue of school districts merging in Pennsylvania has come up. Gov. Ed Rendell’s budget calls for the creation of a committee to research whether some school districts in the state should be consolidated. There are now 501 school districts in the Commonwealth. The governor wants to reduce that to 100.

The Morrisville School Board requested its solicitor, former Congressman Mike Fitzpatrick, to prepare a resolution on the matter for the next board meeting, which is scheduled for April 22.

At this time it’s not known what the chances are of Morrisville merging with the Pennsbury School District, although in the past Pennsbury officials have indicated they would prefer not to merge the districts.