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SPECIAL UPDATE -- 9/28/2020
- UPDATE ON RETIREMENT INCENTIVE
AASD has SIGNED OFF a proposal from the District regarding a retirement incentive that will be offered to all qualifying employees in AASD. The plan is a health benefit retirement incentive. This plan would come in the form of funds being deposited into a health reimbursement account (HRA) by the District under the umbrella of VEBA. If an AASD member were to take this incentive, they would then have access to those funds for eligible health expenditures including health care premiums, deductibles, eye glasses, dental work, copays, etc.
- Retirement Incentive Benefits:
- Non-Medicare eligible retirees under age 65 would be provided with $15,000 annually into an HRA for five years.
- Medicare-eligible retirees who are at least age 65 at the time of retirement would be provided with $5,000 annually into an HRA for five years.
- Note: If a retiree becomes Medicare eligible during the five-year period, the annual contribution amount will be changed from $15,000 to $5,000 in the next calendar year.
Note: AASD retirees would still be eligible for the Retiree Medical Benefit Stipend ($150) that is negotiated for AASD retirees with 17 years of service to SDUSD.
Note: Each year, funds remaining in the individuals HRA will be rolled over to the next year.
Note: At the end of the five year period of funding, any monies remaining in the retiree’s HRA will remain and can be used for eligible health expenditures until the fund runs out.
Note: Investment options will be offered, potentially allowing the member’s fund to grow.
Note: Because the funds are going into an HRA, the funds are not subject to taxes.
- Eligibility:
The retirement incentive will be available to AASD represented members who:
- Are age 55 or older* and have at least 15 years of service to SDUSD as of December 31, 2020; and
- Notify the District of their intent to participate in the retirement incentive within the defined timeline and complete the necessary CalSTRS or CalPERS paperwork, including resignation form for purposes of retirement. Retirement notification must be received by the District no later than October 29, 2020; and the retirement date will be December 31, 2020.
- Are eligible to be covered under a District-sponsored group medical benefit plan as an employee immediately prior to the effective date of retirement with CalPERS or CalSTRS. Any AASD member who is eligible for benefits, but has waived benefits, will be included providing they sign up for benefits during open enrollment.
- *AASD Members in School Police who are part of the CalPERS Safety Retirement Plan are eligible if they are age 50 or older and have at least 15 years of service to SDUSD as of December 31, 2020.
- More information will be coming from the District to all AASD members who are eligible for this retirement incentive. The information will be coming this week via e-mail and other means. AASD knows that there will be a short timeline for members to make a very important decision. There will be many opportunities for members to attend online informational sessions and CalPERS and CalSTRS are prepared to provide information to members during this short timeframe. If you think you may be interested in this incentive, AASD suggests that you visit the CalPERS or CalSTRS online system and make an appointment NOW. You may also wish to make an appointment with your personal financial advisor.
- AASD CONTACT INFORMATION
Executive Director, Donis Coronel -- donis@aasdcs.org 619-813-8792
Office Manager, Linda Crout-Hamel -- linda@aasdcs.org 619-861-2701
Office Clerk, Jim Costello -- jim@aasdcs.org
Please keep informed via the District’s website www.sandi.net, Daily Updates from AASD and via the AASD Website www.aasdcs.org.
Contacts
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