Creditable Earnings Contingency. This provision shall only apply to employees eligible to retire and who are qualified for a retirement annuity under the Teacher Retirement System (TRS) rules and regulations and to any employee that is within four (4) years of becoming eligible to retire and who are qualified for retirement annuity under TRS rules and regulations, and, in either case, regardless of whether the employee is actually retiring or submitting a notice of retirement. For purposes of convenience and this provision only, such employees shall be referred to as “Eligible Employees.” TRS rules and regulations provide that a teacher is eligible to retire and receive a retirement annuity if certain years-of-service and age criteria are met. These requirements can be found on the TRS website. The parties agree that any TRS creditable compensation and/or benefit increases under this contract or otherwise, shall not exceed the maximum amount which results in an employee’s retirement annuity being fully funded by the Illinois TRS, without Board liability for any portion of the retirement annuity. This means that an eligible employee’s TRS creditable earnings (including but not limited to vertical and horizontal salary schedule movement, stipends, salary increases, and retirement incentives) whether under contract or otherwise, shall not increase from one school year to the next by more than six percent (6%) or otherwise increased so as to create Board liability for any portion of the retirement annuity or result in a Board-paid penalty to TRS. In no event will compensation and/or benefit increases exceed the threshold amount which triggers any obligation for the Board to pay additional amounts (in the form of a one-time payment or payments over time) to cover all or part of an employee’s retirement annuity or cover any Board-paid penalty to TRS. Notwithstanding any contrary or other provision of this contract, including but not limited to any salary increase by more than six percent (6%) in any given year of this contract, that employee shall only receive the maximum increase allowed under this provision. Annually, by no later than February 1, the Board will provide to the union a list of all eligible employees. The Board and the Union shall jointly confirm the accuracy of such list. Notwithstanding the above, an eligible employee may receive increases in creditable earnings greater than six percent (6%) contingent upon and in consideration of the following:
Creditable Earnings Contingency. This provision shall only apply to
Creditable Earnings Contingency. The following shall apply to an employee in his final four years of employment who gives notice of intent to retire, has gone off the salary schedule, and is receiving the 6% increase in creditable earnings over the prior year’s total TRS creditable earnings for a period up to a maximum of four years. Under this provision, a teacher shall not be required to perform additional paid positions under Appendix A, overload work, or summer school teaching; and an employee’s TRS creditable earnings shall not increase in excess of 6% from year-to-year.
Creditable Earnings Contingency. The parties agree that their mutual intent is to avoid the District incurring penalties or additional contribution under the new TRS rules. Accordingly, this Agreement shall be reopened for reconsideration upon written demand to bargain by either party, provided that 1) the District becomes subject to and is required to pay such TRS penalty or contribution, or 2) legislation is enacted or administrative rules adopted during the life of this Agreement that affect the District’s obligation to pay a penalty for creditable earnings increases in excess of 6% under the Teacher Retirement System. Such negotiations shall be for the purpose of negotiating appropriate revisions to assure that retiring employees shall receive to the maximum extent possible, the value of the benefits provided under the Agreement, while avoiding TRS penalties to the District.
