After the issue of early retirement compensation was brought to the district’s attention at the last regular board meeting, the Austin Board of Education will hold a special meeting at 8 a.

Tuesday, February 22, 2000

After the issue of early retirement compensation was brought to the district’s attention at the last regular board meeting, the Austin Board of Education will hold a special meeting at 8 a.m. Friday at the District Administration Building.

The hearing will be held to discuss a legal opinion from the board’s attorney.

A request by two current teachers to receive early retirement benefits from the old contract, which was replaced in January, was a topic of discussion Feb. 16. At that meeting, a delegation led by Kenneth Hagen made a formal request on behalf of his wife, Doris, and one other teacher, Joan Rech.

Hagen expressed concern that under the previous contract, both teachers would have been able to retire early at the age of 55 and receive benefits such as health insurance and a one-time lump-sum payment of $7,000.

Under the terms of the 1999-2001 teacher contract approved last month, the pair would be too young to qualify, as the minimum age changed to 56 for the current year and 57 the year after. With the change in age, also comes a change in the amount of retirement compensation.

In the first year of the change, those choosing to retire at age 56 would receive up to $8,000 and at age 57, the lump-sum payment would amount to $9,000, which would remain the same in the second year.

Hagen came forward with Joe Barnett, who described a past practice of drafting a memo of understanding, which could be used to remedy the situation. The memo would allow the teachers to retire and be grandfathered into the previous retirement benefits package.

Concern from board members centered on the language in the current contract, which took upward of nine months to work out. Board member Amy Baskin voiced concern that once a memo of understanding is established, it may open up a precedent that could allow for more changes down the road. And when it was noted that a memo has been used in the past, a contradictory statement at the bottom of the memos presented as an exhibit provided a disclaimer saying, "This does not set precedent or establish past practice."

Barnett said that memos have been used all the time and have been initiated from both sides: the teachers and the administration.

"Memos of understanding can be used as a short-term purpose to ease a narrow situation," Barnett said. "What it would do is open a window to these people."

Both Larry Andersen and Richard Lees agreed that too much stock had been put in the language of the contract and to deny a serious look at a memo, may be a disservice to the service of Rech and Hagen.

"Looking at the numbers it makes sense and if this takes a memo of understanding, so be it," Andersen said. "I would hate to see people who have gone 20 or 30 years in the district … leave with a bad feeling because of a last-minute change. We need to move on this."

At Wednesday’s meeting, the board delayed a decision on the request, waiting until the district and board had an opportunity to discuss the legality of the issue before its counsel, setting up Friday’s meeting.

An action item to be presented at Friday’s meeting will see the board review and adopt its goals for the year 2000-2001.