The first three of the following benefits are applicable to all three employee groups (Licensed, ESP, and Administrative).  The fourth benefit, Retirement Incentive, is only applicable to Administrative and Licensed employees.

1. Sick and Personal Leave Bonus:  Eligible employees will be paid for unused sick, personal leave days, and alternative leave days up to the end of their 2005-06 contract.  This will be paid at the time of retirement based on 30 percent for ESP and 25 percent for Licensed and Administrative employees’ 2005-06 lane and step (daily rate).
   1. Daily rate at the end of the 2005-06 contract year is used for figuring the value of unused sick leave (Licensed use the standard 184-day contract – C salary schedule).
   2. Total eligible days will be computed at the rate of one (1) day per basic contract month from the date of continuous employment in the District up to the end of the 2005-06 contract. For example, nine (9) days per year for nine-month employees, 11 days per year for 11-month employees, and 12 days per year for 12-month employees.
   3. Sick days used, including sick bank days and family health days used, from the date of continuous employment in the District up to the end of the 2005-06 contract will be subtracted from the total possible accumulation. Emergency days used between July 1, 1993, and July 1, 1997, are also subtracted from the total accumulation.
   4. The maximum benefit is 180 days for nine-month employees, 220 days for 11-month employees, and 240 days for 12-month employees.
   5. Additional days will be added to this maximum benefit at the rate of two (2) days for each year (up to the end of the 2005-06 contract year) that no more than one (1) day of sick leave was used, including days deducted for sick leave bank and family sick days.
   6. Additional days will be added to this maximum benefit for Alternative Leave Days and Personal Leave Days not used up to the end of the 2005-06 contract year.
   7. At the time of retirement, if an employee has fewer days available than were accrued at the end of the 2005-06 contract, then the incentive amount will be reduced to reflect the lower number of days.
      1. Example 1: An employee has his/her days figured according to the above outlined formula (A. through F.) and has 106 total days allowed for the sick leave payout at the end of the 2005-06 school year.  In the 2006-07 school year if the employee accrued 15 new sick leave days and used 25 sick leave days and then retired at the end of the school year, the employee total days allowed of 106 would be reduced to 96 days for the retirement payout.
      2. Example 2: An employee has reached the maximum days allowed for his/her contract and does not show any new accrued days.  At the time of retirement a calculation will be done to show what days would have accrued if the employee had not reached the maximum allowed.  These examples show an employee whose maximum days allowed is 180 and works until the 2013-14 school year before retiring:
      3. Employee A: Would have earned 15 days per year during eight additional years of employment equaling 120 days and during the eight-year period used 50 days.  There is no change from the retirement sick leave calculated at the end of 2005-06.
      4. Employee B: Accrued 15 days during the eight more years of employment equaling 120 but his/her usage during the eight-year period amounted to 150 days.  His/her calculated sick leave retirement benefit would be reduced by 30 days.
   8. Employees will continue to accrue leave days beyond the 2005-06 contract.
   9. Retirees with 25 years of service with the Utah State Retirement Systems have the option of authorizing the District to use the sick and personal leave bonus and the $75 per year service award to purchase additional service credit for the employee through the State Retirement System. Compensation used to purchase service credit is not reported as income to the employee.
   10. The above calculated dollar amount will be multiplied by the applicable factor in item C.
   11. Note: This formula for retirement benefit has no relationship to the amount of available eligible sick leave days shown on the Time and Attendance Report or on the employee’s check stub.
2. $75 per Year Service Award:
   1. At the time of retirement, a one-time payment will be made of $75 for each year of service in Jordan School District up to the end of the 2005-06 contract year. This dollar amount will be multiplied by the applicable factor in item C.  (For example, 24.68 years multiplied by $75 equals $1,851 multiplied by the applicable yearly factor (0.9694) equals a one-time payment of $1,794.)
3. Cash in Lieu of Health and Life Insurance Benefits for Retirees
   1. Health and Life Insurance
      1. Employees working fewer than four hours per day (at the end of the 2005-06 contract year) are not eligible for this retiree insurance benefit.
      2. This benefit shall be calculated using contracted full-time equivalent years of service in Jordan School District. Years of service will be calculated on full-time equivalents; e.g. two years of half-time service equal one year of full-time service, up to the end of the 2005-06 contract year.
      3. The amount paid to the retiree shall be based on the 2005-06 District paid composite rate of insurance of $7,560 per insurance year earned and the current District Medicare supplemental rate (not less than $1,812 a year and not to exceed $7,560 a year) per insurance year earned beyond the age of Medicare eligibility (in 2005-06, age 65). If the District does not have a Medicare supplemental rate, the rate to be used will be based on $1,812 for 2006-07 and will increase five percent for each year thereafter (not to exceed $7,560 a year) as follows:
         

         2006-07	$1, 812	2022-23	$3, 955
         2007-08	$1, 903	2023-24	$4, 153
         2008-09	$1, 998	2024-25	$4, 361
         2009-10	$2, 098	2025-26	$4, 579
         2010-11	$2, 202	2026-27	$4, 808
         2011-12	$2, 313	2027-28	$5, 048
         2012-13	$2, 428	2028-29	$5, 301
         2013-14	$2, 550	2029-30	$5, 566
         2014-15	$2, 667	2030-31	$5, 844
         2015-16	$2, 881	2031-32	$6, 136
         2016-17	$2, 952	2032-33	$6, 443
         2017-18	$3, 099	2033-34	$6, 765
         2018-19	$3, 254	2034-35	$7, 103
         2019-20	$3, 417	2035-36	$7, 458
         2020-21	$3, 588	2036-37	$7, 560
         2021-22	$3, 767

         *For example, if the employee retires at age 63 and has 4.80 insurance years, the retiree would receive two years at $7,560 a year and 2.80 years at the current supplemental rate, or the amount above if no District rate is available (no less than $1,812 and not to exceed $7,560) per year.

      4. The number of insurance years to be paid shall be computed by multiplying the full-time equivalent years in the District by 0.2 and rounding to the nearest month. For example, 24.25 years in the District equals 4.85 years of insurance which rounds to 58 months.
      5. The amount calculated above will be paid to the employee over the same period of time calculated in item (4) above in monthly installments as earnings (which is taxable). If, in the future, other payment options become legal (as determined by District legal counsel or the IRS) and appropriate (i.e. tax deferred, health savings account, flex plan) the District will allow such options.
      6. Employees who complete their contract and retire effective at the end of their contract year shall be covered under their regular contract insurance plan to the end of the contract year. The cash in lieu of retiree insurance coverage shall commence with the next contract year and shall continue for the number of years indicated by item (4) above.
      7. Should an employee retire before the end of the contract year, their employee health insurance coverage terminates on the last day of employment. The payments for the cash in lieu of insurance coverage begin the following month.
      8. The above calculated dollar amount will be multiplied by the applicable factor in item C.
   2. Insurance Lump-Sum Payout
      1. The retiree may choose to receive the entire insurance benefit in one lump-sum payment. The lump-sum payment will be discounted by the prime interest rate (at the end of the previous quarter) plus two percent for each year to offset the District’s loss of interest earnings. If this option is chosen, and the retiree returns to District employment during the calculated payout period, the employee is not eligible for District-paid insurance.  The employee may at his/her option purchase health insurance at the retiree insurance rate (not the employee insurance rate).
      2. Insurance monies received in a lump sum are taxable. These funds, once paid to the employee, may be used at the employee’s discretion, including the purchase of retirement credit.
   3. Insurance benefits for retirees enrolled in COBRA
      1. Upon retirement, the employee may elect to receive insurance benefits through COBRA. This is a federal law requiring employers to give former employees and their dependents the option to purchase insurance from the former employer at the rate of 102 percent of the premium cost for 18 months.  For more information on COBRA coverage and how it affects the spouse or dependents of the employee, please contact the Insurance Department.
   4. Retiree Purchase of Insurance: Beginning with the 2006-07 contract year, those employed at the end of the 2005-06 contract year, who later retire with the Utah State Retirement Systems and Canyons School District at the same time, will be able to purchase health insurance through Canyons School District using the following guidelines:
      1. Retirees must have worked ten (10) full-time equivalent years in Jordan/Canyons School District by the time they retire (including years before and after the 2005-06 contract year) to qualify for the retiree health insurance benefit.
      2. Health insurance must be continuous from the date of retirement. Any lapse in coverage will cause forfeiture of the benefit.
      3. The retiree must remain on the health insurance plan for eligible dependents to enroll.
      4. The retiree must elect COBRA coverage at 102 percent of the yearly premium amount for the first 18 months after retirement.
      5. After COBRA coverage has ended, the health insurance premiums for retirees will be based upon 110 percent of the current yearly premium for the next six months.
      6. After the 110 percent six-month period has ended, the health insurance premiums for retirees will be based upon a percentage added to the yearly premium. The percentage added to the yearly District premium will be reassessed annually and be based on the average of the three prior years of actual retiree claims data.
      7. A retiree, or his/her dependents, are no longer eligible to purchase District insurance coverage upon the death of the retiree or when the retiree becomes Medicare eligible. (COBRA c overage will be offered to eligible dependents.)
      8. If the employee had dual coverage during employment (i.e. spouse working for the District as well), and the couple purchases couple coverage into retirement and the spouse dies, the retiree will have the option to purchase insurance as if he/she chose single coverage when he/she retired, unless the retiree took the insurance lump-sum payout.
      9. If the retiree returns to Canyons School District employment and works beyond earned months of the insurance payout and then terminates employment, the retiree will be given a COBRA offer for the continuation of insurance for up to 18 months. Beyond COBRA coverage, the retired employee will no longer be eligible to purchase further insurance coverage.
   5. All District insurance benefits, including the cash in lieu of insurance coverage, terminate at the time of the retiree’s death.
   6. If a retiree returns to Canyons School District employment while still eligible for the cash in lieu of insurance payout, the retiree may choose District-provided health insurance or continue receiving the cash in lieu payment.
      1. The payout months will run concurrent with active months.
      2. The payout months will not be postponed or delayed while actively employed.
   7. Future changes in federal or state law can change this benefit. It is not the intent for this policy to be given in addition to obligations mandated or provided by governing bodies in the future (e.g. state or national health plans).  Under these circumstances the employee will no longer be eligible for this cash in lieu of insurance payment.
4. Retirement Incentive
   1. Only Licensed and Administrative Employees as of the end of the 2005-06 contract year, who later retire with the District under the provisions of the Utah Retirement Systems, are eligible for this benefit.
   2. Employees working fewer than four hours per day (at the end of the 2005-06 contract year) are not eligible for this retiree benefit.
   3. This benefit shall be calculated using contracted full-time equivalent years of service in Jordan School District. Years of service will be calculated on full-time equivalents (e.g. two (2) years of half-time service equal one (1) year of full-time service) up to the end of the 2005-06 contract year.
   4. For a period of time described below:
      1. Licensed retirees will receive a percentage of the difference between Lane A, Step 1, of the 2005-06 Teachers Salary Schedule C (see attached schedule) and that lane and step which the employee was on at the end of the 2005-06 contract year. Retirees paid on any other salary schedule shall have their salary placement converted to the full-time equivalent lane and step on the C schedule to calculate this benefit.
      2. Administrative retirees will receive a percentage of the difference between Lane A, Step 1, of the 2005-06 Teachers Salary Schedule C (see attached schedule) and Lane G, Step 25 of the 2005-06 Teachers Salary Schedule C, plus 10 percent of the difference between the Administrator’s 2005-06 salary and the amount on Lane G, Step 25, of the 2005-06 Teachers Salary Schedule C.
   5. The percentage referred to in item d. above shall be the lower of 58 percent or 1.93333 percent for each year in the District. For example, 24.25 years equals 46.88 percent.
   6. The above calculated amount will be multiplied by the applicable factor in item C.
   7. The amount calculated above is paid for four (4) years. Upon retirement, an employee has four options:
      1. An employee retiring during the contract year will be paid monthly commencing the month following the actual retirement date. Employees retiring at the end of the contract year will receive a monthly entitlement commencing with the July 1 pay period.
      2. The retiree may authorize the District to purchase additional service credit for the employee through the State Retirement Systems as allowed by the Utah State Retirement Systems and Utah State law (See Senate Bill 34 passed by the State Legislature in 1995). The lump sum amount used to procure retirement credit shall be discounted by the prime interest rate (at the end of the previous quarter) plus two percent for each year to offset the District’s loss of interest earnings.
      3. The retiree may receive the monthly benefit for the remainder of the current fiscal year (ending June 30) in a lump sum payment. The prime interest rate (at the end of the previous quarter) plus two percent will be imposed to offset the District’s loss of interest earnings.
      4. The retiree may receive the entire retirement in one lump sum. The lump sum payment will be discounted by the prime interest rate (at the end of the previous quarter) plus two percent for each year to offset the District’s loss of interest earnings.
   8. If the retiree should die at any point between actual retirement and the four-year entitlement, a one-time lump sum death benefit payment still due the retiree will be paid to the designated surviving beneficiary as listed at the time of retirement on District life insurance forms, unless a change in beneficiary status has been filed with the District. The lump sum payment will be discounted by the prime interest rate (at the end of the previous quarter) plus two percent for each year to offset the District’s loss of interest earnings.