City schools hope to save thousands with early retirement plan

An early retirement incentive plan approved by Lynchburg School Board on Tuesday night is expected to save money and reduce layoffs, officials said.

The incentive plan, also known as the 20-20 plan, will allow eligible employees to retire and work for about 20 days and receive 20 percent of their final annual salary.

Officials said 237 employees, both classified and professional, are eligible to participate in the plan, and there’s an estimated average savings of $15,000 per employee.

By offering the plan and having employees retire, officials said at least half of the employees who are slated to be laid off could see their jobs restored.

“We’re trying to make this as positive as possible and make it a win-win for everyone,” Superintendent Paul McKendrick said. “We’re just trying to provide an option for our staff so they can retire in a very dignified way.”

The board, with four members absent, approved the new policy unanimously. Additionally, board members agreed that school administration will continue to tweak the policy’s language, but because of the tight timeline the policy needed to be approved Tuesday.

Those employees wishing to participate must complete an application for the plan and turn it in to the personnel department by May 1. Employees eligible to participate should watch their e-mail inbox for a message from Fred Stanbery, the division’s director of personnel.

Employees are eligible if they are a member of the Virginia Retirement System, are at least 50 years old and have completed 25 years of service, including 10 years in Lynchburg City Schools. Employees must complete the VRS benefits application to participate in the plan.

At Tuesday’s meeting, Stanbery said he would be contacting employees by e-mail. The division has also set up two workshops for employees to get more answers on the incentive plan. The first of which is scheduled for Thursday.

Employees who elect to take part in the plan would participate for five years and during that time the division would pay for the cost of “low option hospitalization insurance.” The division will pay for the health care until the retiree turns 65 or until their five years run out. This insurance does not include vision or dental benefits.

While employees are eligible to work about 20 days (it varies depending on the length of the employee’s contract), to continue to participate in the plan employees must work at least five days.

Officials emphasized employees will be paid only for the days they work, not in one lump sum. An employee’s participation in the plan can also be terminated if they do not complete assigned duties.

The board also made clear the incentive plan is being offered only this year. Employees who participate will certainly receive their benefits for the five years they participate, but whether or not the plan is offered in the future is something the board will decide next year.
In other news, the board:

- Approved a minor budget revision. In its proposed budget, the board recommended eliminating two library assistants. Officials said after reviewing the state Standards of Quality, which outline educational requirements, they realized the positions are required.
Both were added back to the budget by taking stimulus funds previously allocated for the renovation of the Fort Hill School and putting it toward the two positions. Adding back the two spots totaled $48,000.