MICHIGAN CITY — More than 40 Michigan City Area Schools teachers, administrators and other employees are taking advantage of an early retirement incentive package that the school district said will save it $1.89 million in wages and benefits next year.
The reason the package was so attractive was that MCAS offered the 43 retirees a severance payment — $20,000 for each teacher, administrator and other certified staff, and $7,500 for each instructional assistant, paraprofessional and school secretary. They will also receive free dental insurance until the age of 65. That is on top of the extension of health and vision insurance for the retirees until the age of 65, which have always been provided to all retirees from those positions.
The severance will cost the school district $532,500, said Betsy Kohn, MCAS director of communication, but the real savings will come next school year when those employees, among the highest paid, will no longer be receiving salaries.
“It was a good opportunity for us to save money in the long run,” Kohn said.
Among the retirees are 28 teachers and other certified staff and five administrators — Joan McCormick, special education director; Tom Kurzhal, adult basic education director; Karen Williams, Joy Elementary School principal; Sally Roberts, Pine Elementary School principal; and Sylvester Mabone, Elston Middle School assistant principal.
The $20,000 payment will be made to those employees’ retirement accounts in four installments between July 1 and Jan. 31, 2011, Kohn said. Employees set to receive the $7,500 will receive a check for that amount in August.
The package was offered to help alleviate the school district’s budget woes, Kohn said. The district issued layoff notices to more than 25 teachers, 25 certified staff, 27 support staff and seven administrators this spring. Whether those staff will be needed next year due to class section or enrollment needs will need to be decided by the June 8 school board meeting, Kohn said. The names of affected personnel will be released at that time.
Copyright © 2024 The News Dispatch