Modification of Separation Benefits. The parties acknowledge that through the process of collective bargaining, the Board became obligated to pay certain retirement and/or severance benefits to teachers who meet the negotiated eligibility requirements. The parties further acknowledge and agree that most, if not all of those obligations were at one time unfunded and represented a potentially serious financial burden to the Board which might have been forced to lay off teachers, curtail or eliminate programs, or both in order to meet those unfunded obligations. In keeping with the authority granted by PL 217, the Board and Association specifically reserved the authority to revise or terminate the separation benefits contained in earlier agreements. Exercising this authority, the Board and the Association now confirm that Appendix G titled “Separation Benefits” of the prior agreement is now terminated and shall not apply to any teacher retiring or severing employment with the school corporation on or after June 1, 2008. Those teachers who retired or severed employment before the effective date shall only be entitled to the retirement benefits contained in the prior agreement as of the time of his or her retirement unless modified by this agreement.
Modification of Separation Benefits. The parties acknowledge that through the process of collective bargaining, the Board became obligated to pay certain retirement and/or severance benefits to teachers who meet the negotiated eligibility requirements. The parties further acknowledge and agree that most, if not all of those obligations were at one time unfunded ai1d represented a potentially serious financial burden to the Board which might have been forced to lay off teachers, curtail or eliminate programs, or both in order to meet those unfunded obligations. In keeping with the authority granted by the Indiana State Legislature, the parties negotiated a separation benefit package in which that obligation was met by bonds pursuant to SEA 199 in order to provide a source of funding for those separation benefits. The Board and Association specifically reserved the authority to revise or terminate the separation benefits contained in earlier agreements. Exercising this authority, the Board and the Association now confirm that Article XV Separation Benefits Section D. BRIDGE-TO-MEDICARE BENEFIT of the prior agreement is now terminated and shall not apply to any teacher retiring or severing employment with the school corporation on or after January 15, 2005. Those teachers who retired or severed employment before the effective date shall only be entitled to the retirement benefits contained in the prior agreement as of the time of his or her retirement unless modified by this agreement.
