Lansing schools offer teachers early retirement

$9.3 million savings expected over 10 years

By Aileen M. Streng

Lansing State Journal

The Lansing School District expects about 148 teachers, most at the top of their pay scale, to take early retirement this year. The district is offering a one time incentive to teachers and other certified employees already eligible for retirement or with at least 10 years’ experience. It expects a savings of at least $9.3 million over a 10 year period under a plan that was discussed during a series of privately held school board meetings. Some parents think it’s the right move for the district to make.

Eunice Foster, mother of an Everett High School senior, sees the early retirement plan as an opportunity, a chance to bring new blood and fresh ideas to the school district. "I would hope it would bring about the retirement of those older teachers who are more set in their ways and are less open to multiculturalism, cooperative learning and other innovative ideas," she said. Discussions between the board and the teachers union were held in private sessions in January and February. The board approved it in open session Feb. 18 following a closed-door meeting. The Lansing City Council has come under fire for developing its controversial early retirement plan in closed sessions.

The school district expects 148 teachers, some earning salaries of about $50,000 a year, take the early buyout. New, less experienced teachers would be hired in their place. New teachers make $26,282 a year, said Larry MacQueen, associate superintendent of personnel, employee relations and legal matters. "This is part of a comprehensive, long-term solution to a growing fiscal crisis," MacQueen said. Lansing schools face an $11.4 million deficit for the 1993-94 year. District staff is in the process of recommending ways to balance the budget. Program cuts are inevitable.

The offer: One-time offer to the union representing about 1,400 teachers, counselors and other professional staff.

Eligibility: Union members with at least 10 years of service, or who are eligible for benefits under the state retirement program. They must enroll by April 27, indicating they’ll retire by June 30.

The Impact: Of the 1,400 union members.

Savings: The district expects to save $9.3 million over 10 years by replacing experienced teachers. A starting teacher make $26,282; the teachers they’ll replace makes about $50,000.

Because teacher salaries make up much of a school district’s budget, Lansing educators knew layoffs were likely, said Betty Springer, president of the Lansing Schools Education Association. The 1,400 member union is composed of mostly classroom teachers. Membership, though is open to all certified employees, such as school counselors, nurses and psychologists. We decided to take a proactive step," Springer said. After studying other early retirement plans, the association suggested in December that the district look at an incentive plan developed by the Detroit consulting firm Educator’s Preferred Corp.

In 1992, five state school districts—Ypsilanti, New Haven, Highland Park, Milan and Flint—offered the consultants’ voluntary retirement plan. "We do think it’s a good idea." Springer said, "A humane idea." Under the plan eligible association members would receive one year’s salary in equal monthly payments spread over 10 years. On average employees who take the plan will receive $350 to $450 a month for 10 years, school officials said.

Because the school district could use the consultant’s plan rather than starting from scratch, it was able to move quickly in preparing a proposal for the school board and the union, MacQueen said. Informational letters were sent to the 960 eligible employees, who were asked to respond by last Friday if they were interested. About 200 asked for more information. Among those is Mary Dunn, a fourth-grade teacher at Harley Franks Elementary School. She’s weighing the plan to see if it’s the right opportunity for her. After teaching for 34 years, she is thinking about retiring—and the early buyout could give her the incentive to do so. "I will sit down with a counselor and two of my sons and look into it," she said. "Then I’ll decide what to do."

Meeting and financial counseling sessions are being set. Employees have until April 27 to accept the early retirement plan, MacQueen said.  "Every teacher thinks about retiring at some point. It’s nice to have the added incentive," Dunn said. "For many teachers, it will make the difference."

Foster, who is also a member of the Parent Support Network, a group of people concerned with quality education and specifically addressing the needs of African-American youths, said she was excited about the program. "I only wish it was being extended to administrators as well." New teachers also bring new energy and ideas, which are important to a learning environment, Springer said.

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