Pact may include teachers
Flint schools see big saving over 10 years
By Marcia McDonald
The Flint School District could save $23.3 million in teacher salaries over 10 years, under a retirement incentive to be negotiated in the teachers new master contract this year.
Teachers eligible to retire but still teaching would qualify for the plan, which would give them an extra one-tenth of their salary in their pension payments for 10 years.
The district would save money by replacing the high-salary retirees with lower paid teaches with less experience. "Its a two-edged sword. One, you lose experienced people. The other edge of the sword is you gain some salaries." Said Deputy Superintendent Leonard Murtaugh.
" In some cases you get fresh blood. Its a matter of judging experience against perhapsperhapssome new enthusiasm."
About 985 of the districts 1,450 teachers are eligible to retire and 148 likely would take the offer, predicted Educators Preferred Corp., a Detroit consulting firm, which developed the plan. The district would save $23.3 million if 20 of the 148 teaches were not replaced, the consultants said.
"It provides the district the opportunity to actually save some money, which makes sense to the taxpayers," said Peter J. Murphy, president of the United Teachers of Flint.
Inclusion in the teachers contract also could open a retirement incentive to all district employees, which could save up to $6.9 million more if the expected 245 employees opt for it, Superintendent Nathel Burtley said Wednesday.
Typically, district officials negotiate contracts and then offer non-union employees the same items, Burtley said. All of the districts union groups, including the United teachers of Flint, will negotiate new contracts for next school year.
Teachers now may retire at 55 if they worked 30 years or at 60, with 10 years of experience.
Flints teacher population has been aging for years. Only 34 K-12 teachers are under 30. The oldest is 72 and the average age is 46.6. Most teachers are between 45 and 60.
Flint teachers at the top-of-the-scale salary make an average of $47,467 per year, almost double the starting salary of $24,792 for a Flint teacher with a bachelors degree.
Teachers retiring under the plan also would get an undetermined amount to offset tax liability for the 10 years of payments.
The plan still could change during negotiations, union and district officials cautioned.
Generally, such plans give employees a couple of months to sign up for early retirement. Then new teachers would have to be recruited.
The Detroit firm proposes that the district make it the administrator of the plan and allow it to counsel prospective taker. It would receive a commission for implementing the plan, sources said.
Now, 35 to 40 teachers usually retire from Flint each year, Murphy said.
A recent UTF survey found 70 percent of the respondents were interested in such a voluntary retirement plan, he added.
School districts cannot force employees to retire after a certain age, and many of the older teachers are well-liked by students, Murphy said.
But teachers also are under stress for long periods of time, particularly because classes are large and the district continues to cut teaches supply budget, Murphy said.
During summer break, many take classes or work another job. And the school district offers few opportunities and greatly-reduced pay for sabbaticals, he said.
"We are literally burning them out at a much, much faster rate," Murphy said.
Murphy expects an annual retirement seminar scheduled for Tuesday to draw 250 people, the most ever, because of talk about such a plan.