BY M.B. DILLON
STAFF WRITER
Sixty four teachers have decided to accept an early severance agreement offered by Plymouth-Canton Community Schools. The package is expected to save the district close to 7 million over 10 years. "A lot of experienced teachers are taking the buy-out and going on to other things." said Chuck Portelli, president of the teachers union. "They have made a very difficult decision." The number accepting the offer exceeded that anticipated by the union, given the demographics in the teaching ranks, Portelli said.
The district employs 785 teachers, 567 of whom are female and 218 male. The average salary is $52,685; the average age 41 1/2 years; and the average years of experience 23.6. The district is losing many exemplary, experienced teachers, said Errol Goldman, assistance superintendent for employee relations. Those leaving the district will receive $60,000 over 10 years in equal payments beginning in the fall.
The agreement, being handled for the district by Southfield-based Educators Preferred Corporation, is patterned after a severance package adopted in 80 Michigan school districts including Grosse Pointe, Novi, Lansing, Wayne-Westland, Oak Park and Ferndale. Eligible were teachers at the top of the scale with 11 years or service. All 64 teachers will be replaced. The district has a particular need for middle school math teachers.
Under the agreement, the district will pay up front the first year $16,000 in state and federal taxes and social security payments. "The 10-year benefit is taxed up front to the extent of two-thirds of the 10 year benefit," said Tim Bell, EPC vice president. "As the individual receives the monthly check, two-thirds excluded from taxable income and one-third, is included as taxable income in a monthly check. Two-thirds is taxed up front."Employees benefits will continue through the end of August.
Plymouth-Canton administrators are also being offered an early retirement package. They have until the end of this week to accept it or turn it down. Those buying into the severance agreement technically are not retiring and are eligible to seek employment anywhere in the state of Michigan, Portelli said.
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