Ferguson-Florissant Board Approves Early Incentive Retirement Program
The new program will allow retirees to have health insurance costs covered for up to three years and could potentially save the district $1 million.
Wednesday, the Ferguson-Florissant Board of Education approved a measure that would provide an early incentive program for its retiring employees.
The district’s Chief Financial Officer Mick Willis presented a plan that would allow retiring full-time district employees up to three years of health coverage. The program is similar to a plan that the district put in place in the 2009-2010 school year, he said.
Under the plan, a retired employee could have $8,000 allocated toward their health insurance costs for the year, which is a $500 increase from the 2009-2010 plan. Willis said that the increase accounts for inflation and increases in insurance cost.
Retiring employees have the option to have the health insurance or take the money for the insurance costs.
The plan is based on a sliding scale for retirees, Willis said. For example, if an employee worked for the district for 30 years, they could receive the $8,000 health insurance for three years opposed to someone who worked in the district for 20 years and would receive it for one year.
In the long term, the district could save an estimated $1 million, he said, with more experienced employees retiring and hiring new, younger teachers.