To:

To: USD 261 Employees Age 52 and over

Fr: Dr. Perry McCabe, Asst. Supt. of Business/Finance

Da: February 11, 2005

Re: Possibilities of District Early Retirement and/or KPERS Retirement

Please note that this information is being sent to all USD 261 employees age 52 and over to notify them of their potential eligibility for the district’s early retirement program and/or KPERS retirement program. Pursuant to the Negotiated Agreement and Board Policy, a district employee is eligible for the district’s early retirement program if:

a. Employee must have completed 10 years of employment in USD 261.
b. All employment during this time must have been at least ½ time or more to qualify as employment.
c. Employee must be currently under contract or employed by USD 261.
d. Employee must qualify under KPERS 85 and Out plan or Age 62 with 10 years of service.
e. No minimum age requirement must be met.

However, certified employees electing to participate in the district program must do so in the first year they are eligible under the above provisions if they are to receive full benefits. If they do not, and choose to go the 2^nd year they are eligible, the benefits will be reduced to 90%, the 3^rd year eligible, 30%, and the 4^th year eligible, 10%. For a certified employee to activate early retirement benefits, they must apply no later than May 20,

one year prior to retirement. If a certified employee does not choose to participate in the early retirement program within the above four year span, no early retirement program will be available them (See Negotiated Agreement). Classified employees must elect to participate in the district program within the first 90 days that they become eligible or no early retirement program will be available to them (See Educational Support Personnel Handbook). District administrators must take advantage of the plan in the 1^st year of eligibility, or no early retirement program will be available to them (See Board Policy). Administrators must also apply no later than May 20, one year prior to retirement.

If you have any questions as to when you will be eligible, if you are eligible, or if you have missed your eligibility for the district early retirement program, please contact Dr. McCabe. He can also give you an estimate of your early retirement benefit from the district.

All KPERS covered employees may retire with full KPERS benefits at age 65, age 62 with 10 years of service credit, or any age when your combined age and years of credited service are greater than or equal to 85. Your age is determined by your last birthday and is not rounded up. You may retire with reduced benefits as early as age 55, if you have at least 10 years of credited service. A reduction fact of 0.2% is applied for each month you are between the ages of 60 and 62, plus 0.6% for each month you are between the ages of 55 and 60 (See KPERS Membership Information Manual).

If you have any questions as to your eligibility to retire under KPERS and your approximate KPERS benefits, please contact Dr. McCabe.