Running head: ERIP POLICY 1

The Early Retirement Incentive Program Policy

Jeffrey M. Oberg

Virginia Commonwealth University

ERIP POLICY 2

The Early Retirement Incentive Program Policy

Description of Policy

Summary

Although early retirement incentive programs (ERIP’s) have been in existence in

Virginia for years, the Virginia General Assembly enacted the Workforce Transition Act of 1995

(Appendix A) in order to detail provisions of retirement for many state government employees.

More specifically, this piece of legislation references early retirement programs for public school

employees. Although this act did not require school divisions to provide employees with an

early retirement program, on April 21, 1995, King William County Public Schools enacted an

ERIP (Appendix B). King William County Public Schools’ version of this policy has been

revised twice since its adoption. The first revision changed the number of years of service for an

employee to become eligible for ERIP from five to ten. The most recent revision was to

discontinue the ERIP.

Policy Type

Fowler (2013) explains and details three different policy types. The ERIP policy

possesses elements of all three. First, this policy is a regulatory policy. This policy details

formalized rules about who is eligible to participate, the formula for the benefit, and the program

requirements (Fowler, 2013). In order for employees to be eligible for the ERIP (Appendix B),

they must be full-time employees of King William County Public Schools for ten consecutive

years at the time of retirement. Employees must be members of the Virginia Retirement System

ERIP POLICY 3

(VRS) for at least twenty years. In addition, employees must be between age fifty and the

eligible age for Medicare.

This policy also regulates the formula for calculating the retiree’s benefits. Under this

policy, retirees receive an annual compensation equal to fifteen percent of the final base pay.

Health insurance is available at the retiree’s expense until Medicare eligibility is met. In order to

reap the benefits of this program, retirees are required to work for the school system the

equivalent of two days per contract month. The assigned days are to be determined by the

superintendent or designee.

The ERIP policy is also a distributive policy. King William County Public Schools is

bestowing a gift on its most loyal employees by allowing qualified staff to retire early. The

employee who chooses to enroll in the program enters into a contract where an agreement is

reached (Fowler, 2013). Here, King William County Public Schools allows the employee to

retire early and the retiree agrees to work, in retirement, for the school system two days for every

month of the pre-retirement contract (Appendix B). The usual agreement is that the retiree

satisfies the required number of days and the school system pays for the retiree’s health

insurance.

Finally, the ERIP policy is also a redistributive policy. Fowler (2013) explains that a

redistributive policy shifts resources from one entity to another. Public school employees are

compensated from the tax paying citizens of the locality. Thus, the resources, or money, of the

tax payer is shifted to the public school employee as compensation for educating the young

people of the locality. Not only does Fowler (2013) admit that policy categories overlap, but she

also states, “In the long term, all policies are both regulatory and redistributive” (p. 219).

ERIP POLICY 4

Legal Issues

Constitutional Law

While no specific part of the United States Constitution or its amendments expressly

discusses or denotes retirement, early retirement, or any such incentive, the United States

Constitution could speak to the benefits of retirement or early retirement. The United States

Constitution’s opening paragraph, the preamble, lists the reasons for its existence. One of the

reasons expressed in the preamble is to “….promote the general Welfare….” (U.S. Constitution)

of the citizens of the United States. This means that it is the goal of the United States

Government and its Constitution to aid in citizens’ health, happiness, and well-being. One could

argue that when a person works the majority of his or her life, which could be somewhere

between twenty to thirty years or more, that person deserves to rest and enjoy the remaining

years. Thus, to help someone achieve this sooner, as in early retirement, would be an action that

speaks to this intent.

In contrast, the state of Virginia does specifically address retirement. The Constitution of

Virginia, Article X, Section 11, requires the General Assembly to maintain “.…a retirement

system for State employees and employees of participating political subdivisions” (Virginia

Constitution). Although not officially a part of the Virginia Constitution until 1995, the VRS

existence, in some form or another, can be traced back to 1908. Since its inception, many

revisions of this system are noted. A version of retirement called the ERIP is under this

provision. Today, the VRS’s rules, regulations, policies, and procedures mirror the Federal

Social Security System (Virginia Retirement System).

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Federal & State Statutory Law

On the Federal Government level, President Franklin Delano Roosevelt’s administration

was the first to address retirement in the United States of America with the passage of the Social

Security Act of 1935. This law created the Social Security Administration which tracks,

monitors, and regulates retirement of United States citizens. Since its inception in 1935, this law

has gone through many revisions. Two main revisions include the addition of disability benefits

in 1956 and the creation of Medicare in 1965. The criteria used by the Federal Government

through the Social Security Act and the Social Security Administration to define rules,

regulations, policies, and procedures for retirement were also used by state and local

governments to define retirement (Social Security Administration).

On the State Government level, the Virginia General Assembly enacted the Workforce

Transition Act of 1995 (Appendix A), in order to detail provisions of retirement for many state

government employees. This act put retirement directly into the state of Virginia’s Constitution

with Article X, Section 11. It required the General Assembly to maintain “.…a retirement

system for State employees and employees of participating political subdivisions” (Virginia

Constitution). This system, the VRS, has been in existence in some form or another, since 1908

and has gone through many revisions since its inception. As a benefit of the plan, the ERIP was

under this provision. Today, the VRS’s rules, regulations, policies, and procedures mirror the

Federal Social Security System (Virginia Retirement System).

State Board of Education Regulations

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The Constitution of Virginia designates the Virginia General Assembly as the primary

legislative body over public education in the state. Thus, the state board of education is merely

an administrative group that works closely with and advises the legislature. The function of the

Virginia State Board of Education is to administer the laws, rules, regulations, policies,

procedures, and programs established by the legislature (Virginia Board of Education). When it

comes to retirement and retirement plans, the State Board of Education adheres to the Workforce

Transition Act of 1995 (Appendix A). This act allows for an ERIP. As stated earlier, this act

takes its lead from the Federal Social Security Act and Administration.

Local School Board Regulations

Similar to the State Board of Education, King William County Public Schools followed

the directive of the Virginia General Assembly. The Virginia General Assembly enacted the

Workforce Transition Act of 1995 (Appendix A) in order to detail provisions of retirement for

many state government employees. This piece of legislation provided local school boards the

option to offer an ERIP as a benefit. Although this act does not require school divisions to

provide employees with an early retirement program, on April 21, 1995, King William County

Public Schools initiated an ERIP (Appendix B). King William County Public Schools ERIP

policy has been revised twice since its adoption. The first revision changed the number of years

of service for an employee to become eligible for the ERIP from five to ten. The most recent

revision was to discontinue the ERIP.

Case Law

Case law about retirement, retirement plans, and early retirement were not abundant.

However, one case out of the United States Court of Appeals for the Fourth Circuit referenced

early retirement. Salazar v. Office of Personnel Management (2012) was a case where Mr.

ERIP POLICY 7

Salazar appealed an earlier conviction of falsifying documents. Mr. Salazar was employed by

the Federal Government. After a background investigation, the U.S. Government determined

that Mr. Salazar lied about his education and his place of birth.

In lieu of termination, Mr. Salazar and his employer entered into a settlement agreement

where he would remain employed until the date he was eligible for early retirement. When Mr.

Salazar became eligible for early retirement, he submitted an application. This application was

approved and he began receiving benefits. On his application, he listed an incorrect birthdate.

When this went to court, Mr. Salazar was convicted by a federal grand jury of four counts of

making false statements on both his employment and retirement applications (USA v. Salazar,

2009).

A jury subsequently convicted Mr. Salazar of making false statements about his place of

birth and knowingly and willfully submitting an application for retirement in which he gave a

false birthdate. The U.S. Government asserted that Mr. Salazar knew he was not eligible for

retirement yet submitted his paperwork. Upon his conviction, Mr. Salazar appealed the decision

but his conviction was upheld. Subsequently, the Office of Personnel Management notified Mr.

Salazar that his annuity would be terminated because he failed to meet the conditions of his early

retirement and that he would be required to repay the $20, 540.88 in retirement benefits he had

received. Mr. Salazar appealed the decision of the Office of Personnel Management and again

lost the case (Salazar v. OPM, 2012).

Research Issues

Theories

The first research theory comes from Bolman and Deal’s (2008) Structural Frame. When

government agencies are faced with a budget that is underfunded, they have to find creative ways

ERIP POLICY 8

to save money. In order to do so, the government agency is forced to take a hard look at its

structure, evaluate necessities, and make tough decisions. These tough decisions involve

reinstituting or creating rules, regulations, policies, and procedures in order to save money. With

government agencies, this focus is on employees, as the human resources portion of the budget is

the largest.

To continue with this theory, in order to save money government agencies will offer an

ERIP. The theory behind an ERIP is to have those employees making the most money retire

early in order to hire employees who would then make less money. Looking at both ends of the

pay scale, a new hire’s salary could potentially be half that of a veteran at the top of the pay

scale. This would amount to substantial savings by the government agency (Ellis & Frey, 1982).

However, it is not that easy. There are many factors to consider.

In light of a budget shortfall in 1991, Virginia institutes an ERIP. However, Virginia’s

premise is that fifty percent of the retirees would not be replaced. For if all retirees are replaced,

the government agency would still have the same payroll. Essentially, employees lower in the

hierarchy would take the retired employees’ positions and new employees would enter the

hierarchy at the bottom. Another issue is the additional costs associated with early retirees. The

amount of years an employee retires early would be years the government agency would have to

pay retirement benefits not normally incurred. If all employees are to be replaced, this would

actually cause the agency to spend more money thus, defeating the purpose (VRS, 1995). The

question then becomes, is it financially viable to the government agency to offer its employees

an ERIP?

The last theory emanates from Boleman and Deal’s (2008) Human Resource Frame.

When Virginia proposes its ERIP in 1991, the state shows how this could positively benefit

ERIP POLICY 9

employees. First, with the government being forced to cut costs, an ERIP is an alternative to

layoffs. Second, it is noted that the ERIP offers those employees who are not amenable to new

administrations and change, a dignified exit. Finally, employees will see this as a benefit as this

program enables them to stop working at an earlier age. The Commonwealth of Virginia uses

these reasons to show how it considers its employees family and takes their best interests to

heart.

Interviews

Purpose

In the midst of class discussions, it was noted that sometimes the Virginia General

Assembly passes laws and this legislature is not fully aware of the impact that law has on

constituents. In order to better understand the impact of the ERIP policy in King William

County Public Schools, two people were interviewed. One of the interviewees had a part in the

development of the policy and the other interviewee had a part in the implementation of the

policy. Both individuals were asked the same twelve questions. When the data were analyzed,

emerging themes were noted. In addition to emerging themes, the data was used to conclude the

success of implementation of the King William County Public Schools ERIP policy.

Procedure

Two individuals were contacted by phone in order to ask their permission for an

interview about the ERIP policy. One person was contacted for an interview because he helped

to develop the policy and the other person was contacted for an interview because he helped to

implement the policy. A date and time were agreed upon and placed on the calendar. Before the

actual interview took place, both interviewees were emailed the interview questions. Both

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interviewees were asked the same twelve questions, located in Appendix C, and each interview

lasted about thirty minutes.

During the interview, participant’s responses were recorded. The interviews were then

transcribed using a voice-recognition software program. Once the interviews were transcribed

each participant received their copy via email. Both transcripts of the interviews were then

compared side-by-side. This allowed for analysis of similarities and differences in both the

development and implementation phases of the King William County Public Schools ERIP

policy. From this analysis, emerging themes were noted.

Profiles of Interviewees

The first interview was with the Superintendent of King William County Public Schools.

As superintendent, he was responsible for the implementation of the policy and will be

referenced as the implementer. This superintendent has been in his position for seven years.

When he became superintendent, this policy was under revision. When it comes to policy, this

superintendent was in favor of doing whatever the King William County School Board

supported.

The second interview was with the Superintendent of King and Queen County Public

Schools. He was interviewed because at the time the ERIP policy was revised, he was the

Assistant Superintendent in King William County Public Schools. A substantial part of his

career was in King William County Public Schools, so he knew the system very well. In his role

as assistant superintendent, he was tasked with the research that went into the decision to change

the previous ERIP policy. Thus, he was a developer of the new policy and will be referenced as

such.

Data By Question

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Question 1: How did this policy come about?

The developer started by explaining that the ERIP policy was already in place. He went

on to explain that the ERIP policy was developed so that employees who were interested in or

considering retirement but maybe didn’t because of economic restrictions would be afforded an

opportunity to retire. An employee would work two days a month and still have his/her

insurance covered in the same way as if he/she were an employee. He explained that it was his

understanding that an ERIP employee would work two days per month of their contractual

obligations. He then went on to explain his knowledge of the rules and criteria of the policy.

The implementer started by stating the policy was developed for several reasons. The

first reason was to benefit the employee who served the division for at least five years.

However, a revision to the policy took place in 2007 requiring an employee to serve ten years in

the division before becoming eligible for the ERIP. As of now, the [King William County

School] Board has decided to discontinue this policy. The policy, when in effect, encouraged

experienced employees to remain in the division because they had to work and retire in the same

division to receive ERIP funds. It allowed retirees to have a supplemental income.

The second reason was to benefit the school division. It helped by providing the division

a qualified teacher who can act as a substitute in the event of a teacher absence. It also provided

the division another pool of qualified individuals to use for other types of projects. Particularly,

retired administrators could help with a special project like a Southern Association of Colleges

and Schools (SACS) review, a six year plan, or some other specific program that would be

implemented. In addition to the benefits of the policy, the implementer also went on to explain

his knowledge of the rules and criteria of the policy.

Question 2: What is the purpose of the policy?

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The developer expressed that at the time the ERIP came to King William County Public

Schools, it was the beginning of some budget concerns. Thus, the [King William County Public

School] Board was looking for ways it could be more efficient with its funds. So, the developer

was tasked with conducting a study of several school systems in the state in order to see who

offered an ERIP, and of those who did, evaluate how the policy was implemented. At first, the

developer alluded to the ERIP as a money saving option. However, his answer turned more to

his role in the development of the new policy, which was question number three.

The implementer gave the same answer as he did to question one. Again, he stated the

policy was developed for several reasons. This was a benefit to employees who showed

dedication to the division. However, the [King William County School] Board has decided to

discontinue the policy. The policy encouraged experienced employees to remain in the division.

It provided retirees a supplemental income, usually to provide health care.

The policy also benefited the school division. It helped by providing the division a

qualified teacher who can act as a substitute in the event of a teacher absence. It also provided

the division another pool of qualified individuals to use for other types of projects. Particularly,

retired administrators could help with a special project like a Southern Association of Colleges

and Schools (SACS) review, a six year plan, or some other specific program that was to be

implemented.

Question 3: What is your role with respect to this policy’s

development/implementation?

The developer had an integral part in the ERIP policy on several fronts. First, as

mentioned earlier, he was tasked with studying other school divisions in the state to see which

ones offered an ERIP program and, if they did, how they implemented their policy. He

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expressed that he surveyed between fifteen and twenty school divisions. He reported that less

than half of the counties he surveyed had an ERIP policy. Of those school divisions that had an

ERIP policy, employees were required to have worked in the division for an average of seven

years before they became eligible for ERIP benefits.

The developer continued to explain that as assistant superintendent he was responsible for

the school’s operations and human resources. The ERIP was a human resources function that

dealt with benefits. When it came to operations, this dealt with contracts. Since the county used

a service for its substitute teachers, this was completely in his realm. He mentioned that since he

was responsible for these budget items, it was a budgetary concern to use the substitute service

less.

The implementer said his role was to ensure the policy was implemented correctly. That

was to ensure that individuals who had been hired after July 2007, and wanted to participate in

the ERIP, have ten years of experience in the division. This also came with a monitoring part.

He was to ensure that they [ERIP employees] work their twenty days, twenty-one days, or

twenty-two days depending on their contract. Employees who had a ten month contract should

work twenty days per year, eleven month contract employees should work twenty-two days, and

twelve month contract employees should work twenty-four days per year to be sure that each one

lived up to their contractual requirements, based upon the policy.

Question 4: Who were some other people (roles not names) or other groups

interested in this policy?

The developer expressed that the school board had a vested interest in this policy. This

interest came out of budgetary concerns. The [King William County Public Schools] Board

finished its budget process in April or May. This process found the Board realizing budget

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issues were on the horizon. Thus, the Board started exploring ways to be more efficient with its

money. The ERIP policy was one of the areas researched.

The implementer referenced only one other person interested in the ERIP policy. He

mentioned the director of human resources. The reason he listed this person was due to his/her

responsibility to coordinate the policy’s implementation for the county.

Question 5: What kinds of things were considered as the policy was

developed/implemented?

The developer expressed there was discussion on whether or not the ERIP policy

included paraprofessionals, support staff such as bus drivers and cafeteria workers, or licensed

teachers. In addition, the question was asked as to what should be done about the recent retirees

not included in the ERIP? Thus, it became an equity issue. Where the [King William County

School] Board drew the line in order to cover itself from a legal standpoint, was to say all VRS

covered positions could be eligible.

The implementer indicated that the five year tenure was considered. Before July 2007, an

employee had to work in the division for five years prior to retiring to be able to participate in

the ERIP. After July 2007, the years of service requirement was lengthened to ten years. This

was a critical piece to consider.

Question 6: What are some strengths of the policy?

The developer expressed that King William County Public School’s employees needed to

see this as an incentive because the Board was investing in them. In return, the idea was that the

ERIP provided stability to the county. As staff approached retirement, they analyzed benefits

such as salary at the top of the scale and programs offered in retirement. Staff could have gained

employment with another school division that pays more but that division might not have an

ERIP POLICY 15

ERIP. This added benefit helped employees plan for their economic longevity into their

retirement years.

The implementer said one of the main strengths was that it permitted our employees to

have a benefit in retirement. However, the ERIP policy also allowed the division to keep good

employees. If employees were close to retirement, they might think twice, “if I were to go to

another division I would lose this [ERIP benefit].” So, the policy helped to retain good

employees.

Question 7: How did you get “buy-in” for the policy?

The developer did not like the term “buy-in.” As far as stakeholders were concerned, the

potential change in policy was not anything that promoted an opportunity for buy in from

employees. Although employees knew the ERIP policy was being revisited, the number of

employees that were immediately impacted was very small, only one or two. Employees nearing

retirement were not concerned with a change in the policy because the type of change being

considered would not apply to them and they would still remain eligible. For employees that

were ten years from retirement, they were still going to be covered. He felt that the consensus of

the employees was that stretching out the years of service requirement increased the chances that

the ERIP would be there when they were ready to retire.

The implementer felt that “buy-in” was more a function of the developer. However, he

did say that, as an implementer, you get buy-in while encouraging employees to participate in the

ERIP. However, he expressed that he felt King William County Public Schools doesn’t

encourage participation. It was just a benefit offered to employees upon retirement.

Question 8: What did the process look like for implementing the policy?

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The developer explained that the previous policy was consulted. Then, policies from

other school divisions were referenced. Specifically, King William County Public Schools tried

to parallel its ERIP policy with that of two other localities. During the research phase, it was

noted that King William’s ERIP policy had more detail than many. Basically, King William

County Public Schools took the structure of several different school systems’ ERIP policy and

incorporated it into the meat of what this [King William County School] Board, ultimately

approved.

The implementer started to explain the process for an employee to use the ERIP policy.

The employee had to apply for retirement by notifying the Human Resources Department in

December. He then finished his answer explaining how the policy was written to allow the

[King William County School] Board to vote on a yearly basis whether or not to continue use of

the ERIP policy. He made a point to mention that last year the [King William County School]

Board elected to discontinue the ERIP policy. This was due to budgetary concerns.

Question 9: Is there any language in the policy that is bothersome to you?

The developer expressed that the only piece of the policy that bothered him was the part

the [King William County School] Board requested be added stating the Board must approve

appropriation of funding for the policy, annually. He said he understood why the Board wanted

the clause and agreed with it. Including this clause did not bother him because it was wrong, he

felt it was right. However, he felt this might alarm some employees. People start planning

retirement several years in advance. So, an employee might have planned to retire in a couple of

years under the ERIP policy and then the policy was not an option anymore. It could mean that

an employee would have to change retirement plans.

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The implementer expressed a similar concern. He said the language in the policy that

bothered him was the statement that permits the Board to discontinue the policy on a year by

year basis. He went on to say that employees must read the policy very carefully. It was

important to correctly interpret the meaning of the policy.

Question 10: What is your perception of the success of implementation of this

policy?

The developer felt the implementation was a success because neither the [King William

County School] Board, the superintendent, nor he heard any complaints. He also felt that since

so few school divisions had an ERIP policy and King William did, the policy was supported.

The implementer felt it was implemented very well. It was an academically and

instructionally sound policy because schools had a qualified person in the classroom. The kids

would learn that day. The Principal and Assistant Principal did not have to spend time in the

classroom helping supervise. So, there were instructional and academic benefits for the students.

Then he went on to discuss the financial issues associated with the policy. The intent of

the policy may not be what everyone envisioned. He felt that early on, the policy was supposed

to be a wash. He clarified saying he meant that the school division could get a retired person and

could really save money associated with substitute costs. However, the ERIP policy was not cost

effective. Thus, the policy might not do what it was intended to do financially.

Question 11: How will you know the policy is doing what it is intended to do?

The developer stated the policy was doing as it was intended if during its implementation

it did not have any problems; as long as no one expressed a concern with the policy that the

policy did not address. He was very comfortable with the fact that this was a very clean policy to

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implement. No one questioned the policy, asked for any concessions, or further benefits within

the policy.

The implementer felt he answered this question in the previous question. He felt that by

having an experienced teacher in the classroom, the administrative team did not have to spend

time monitoring this classroom. Then the administrative team could be doing other required

jobs. Thus, this was not a day when students were doing nothing. Students would actually learn

in the classroom with an experienced teacher.

Question 12: Do you have anything else you’d like to add that hasn’t been talked

about?

The developer thought it was very admirable of the [King William County School]

Board, when they decided to discontinue funding for the ERIP, to wait a year before the decision

took effect. In other words, employees planning to retire in the upcoming year were still eligible

and the decision did not totally pull the rug out from under anyone. The developer felt this was a

very good step on behalf of the School Board. The implementer did not have any further

information to add.

Emerging Themes

The initial theme that emerged was a positive human resource function. Both

interviewees appeared to be human resources oriented. Meaning, many of the answers had to do

with addressing benefits offered to the employee. When the policy was altered, answers were

still given that showed thought into how the change would affect employees. This theme

continued even though the decision was to discontinue the policy. Comments addressed the

[King William County School] Board taking employees’ thoughts and feelings into account to

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the point of making the decision to discontinue the policy a year in advance. This was so

employees could plan their best retirement scenario given the change.

The final theme that emerged was a negative structural function. Both interviewees

mentioned how they liked the benefit an ERIP brought to employees but could not mention this

policy without mentioning the cost. At first, the cost of the program was supposed to be a wash.

Essentially, what the [King William County School] Board would spend on an early retiree they

would save on substitute costs. However, this was not reality. One interviewee referred to the

policy as a luxury that was difficult to fund during tough economic times. The other interviewee

wanted it to be known that the Board discontinued the ERIP policy because it was not cost

effective considering the budget and the tough economic times.

Conclusion

Conclusions will encompass an analysis of the ERIP policy with regard to basic United

States democratic values and major United States ideologies. The success of the implementation

will be discussed. In addition, interview data will be analyzed with respect to United States

democratic values, United States ideologies, and success of implementation to show support of

the policy and why it is in its present state. Finally, suggestions will be made to evaluating the

effectiveness of the policy.

Analysis

When considering policy, it is important to identify and analyze any values or ideologies

involved with the formation, implementation, and sustainability of the policy (Fowler, 2013).

Thus, it is helpful to understand the benefits that may have led policy makers to propose such a

policy. When considering the ERIP policy, one must look at basic United States democratic

values and major United States ideologies.

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Basic U.S. democratic values – self-interest economics

Many people are motivated by their economic situation. To this end, people do not make

decisions about their employment without considering things like salary, benefits, or retirement

(Fowler, 2013). When a person first secures employment in the education field, one could argue

he or she is not overly worried about the salary; people do not enter education to get rich.

However, as employees approach retirement, they do consider retirement plans and benefits they

can receive in retirement. An ERIP is a benefit that most employees would use as this program

allows the employee to stop working sooner than anticipated. Yet, the employee would still be

able to receive additional monies in retirement to help with costs such as those associated with

health insurance.

The employing agency could possibly benefit as well. If the employer could afford to let

an employee retire early, it could eventually save money. The employer could hire a new

employee at a lesser salary than the person it let retire. In addition, the employer would show a

vested interest in its employees by offering this benefit resulting in employee satisfaction. This

benefit could also influence employee stability finding employees leaving less and staying

longer. This would be an example of the employer looking after its economic self-interest.

Major U.S. ideology – business conservatism

The major U.S. ideology in effect here is business conservatism. Business conservatives

believe people are motivated by their own economic interests, and material well-being is the

central goal of society. Business conservatives emphasize two values: efficiency and freedom

(Fowler, 2013). This ideology goes hand-in-hand with the basic U.S. democratic values of self-

interest economics.

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When employees are considering retirement, they must weigh their economic interests

and material well-being. They must decide the best retirement scenario. If they retire early, they

will receive less money in retirement and they must calculate if this is an affordable option. This

might find them having to wait until full retirement. However, if an ERIP, is an option this

might change the decision making process. This is all an effort by the employee to put him or

herself in the best possible economic situation in retirement.

Business conservatives would like to see employment agencies be in a position to offer

ERIP’s. According to this ideology, the government would have little interference in economic

matters (Fowler, 2013). This would allow the employer to be able to compete freely in the

marketplace. An ERIP is a benefit many people would value. Thus, employees would want to

be employed with an agency that offers such a benefit. This would result in more employees

taking advantage of this benefit.

Value conflicts

An inherent conflict exists between the U.S. democratic value of self-interest economics

and the U.S. ideology of business conservatism. This conflict exists first in the economy and

then in the structure of public education. The success of the economy is relative to employing

agencies and employees’ definition of economic self-interest and material well-being. The more

the economy thrives, so do businesses and employees. However, the ERIP policy is considered a

part of the public school system which is a government entity. While its leaders are keeping

employees’ best interests at heart, the school system is still regulated by government funding.

This goes against the business conservative ideology.

Success of Implementation

First generation research

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In the beginning, the ERIP policy was considered as a measure to help the government

agency save money. The concept was to let those employees at the top of the pay scale retire

early so the agency could hire employees at the bottom of the pay scale; thus, save money.

However, several factors had to be taken into account. The need to save money rose from

economic and budgetary concerns. So, money was not readily available, yet the agency would

have to start paying retirement benefits to qualified employees sooner.

Next, the employees retiring held important management and leadership positions. These

positions were needed to help run the agency. So when these employees retired, the remaining

employees with the most experience took the vacant managerial or leadership positions. Thus,

all positions were being replaced which resulted in a deficit to the agency. The deficit occurred

when the agency had to pay ERIP benefits to the employees who participated as well as the full

complement of employable positions.

Second generation research

The VRS, in 1995, reported a study conducted on the ERIP policy. Here, the idea behind

saving money through the ERIP policy came with suggestions. The biggest of these suggestions

involved a reduction in the workforce. In order to save money when the government agency had

employees participate in the ERIP, the agency was only allowed to replace fifty percent of those

who retired. In addition, with the financial commitment an agency would have to make in order

to offer its employees an ERIP, the local government agencies were given the option of whether

or not to offer an ERIP according to its unique situation.

Third generation research

By this time, it had become evident that the ERIP policy was not a complex policy. One

of the interviewees even commented how the policy was a very clean policy to implement. The

ERIP POLICY 23

policy might be simple and clean but it still required funding. Thus, school system’s use of an

ERIP policy seemed to ebb and flow with the economy.

The ERIP policy in King William County Public Schools has slowly ebbed away. At

first the policy was implemented. Then, as a result of the weakening economy, the policy had to

be amended to lengthen the years of service for an employee to become eligible to participate in

the program. Once the economy entered a recession, the King William County School Board

opted to discontinue the ERIP policy. The question is, when the economy comes out of the

recession, will the policy be re-established?

Analysis of Implementation Framed With Interview Data

The ERIP policy was different from other policies. Usually the Federal Government or

the State Government developed policy and mandated localities implement the policy. However,

localities had the option to implement an ERIP if they decided this was amenable to their unique

situation. Smaller school systems like King William County Public Schools liked to offer an

ERIP because it helped keep the school division competitive with surrounding school divisions.

However, regardless of this or any other benefit, whether or not a locality initiated such a policy

usually depended upon the funding available.

In the beginning, King William County Public Schools was following the State of

Virginia’s lead and the state of Virginia followed the Federal Government’s lead, by instituting

an ERIP policy. However, King William County School Board’s ERIP policy had one

difference; it included a clause that allowed the Board to annually conduct a vote as to whether

the policy would continue. This decision was dependent upon funding. At the policy’s

inception, the economy was stable and funding was not an issue. According to leadership, this

policy helped the school division stay competitive with surrounding school divisions.

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Employees appreciated the ERIP as an added benefit and many stayed with, and retired from,

King William County Public Schools.

However, if the economy were to enter tough times, government budgets would be

strained. When this happened in King William County Public Schools, the School Board asked

the assistant superintendent at the time, to research the ERIP policy. An extensive evaluation of

fifteen to twenty school divisions’ ERIP policy ensued. The results showed that less than half of

the school systems surveyed offered employees an ERIP and those who did, required an

employee to have seven years of service, among other criteria, before he or she could be eligible

for the ERIP. Thus, the King William County School Board decided to change the years of

service criteria for eligibility from five years to ten years.

The United States economy’s woes did not stop here. The economy continued a

downward trend until eventually it slipped into a recession. As expected, government budgets

were further strained. Local school divisions had to find ways to save money. As a result, the

King William County School Board conducted its annual vote and decided to discontinue its

ERIP policy. It was not cost effective for the school division to offer this program anymore.

This vote will continue to occur on an annual basis and might find the policy reinstated if the

economy were to rebound.

King William County Public Schools instituted a simple, clear-cut policy. This ERIP

policy was appreciated by all and benefited many. The implementation was smooth and easy.

However, the success of the program was at the mercy of the economy. The King William

School Board realized the benefit of such a program and tried to amend or alter the policy in

order to keep it. In the end, the economy did not allow King William County Public Schools to

afford the funding and the policy was discontinued.

ERIP POLICY 25

Effectiveness of Policy

The ERIP policy’s origin finds its purpose in saving money for an employer. However,

upon closer examination, the policy cannot save money for an employer by itself. In order for an

employer to effectively use this policy to save money, other criteria need to accompany the

policy. For example, when employees use the ERIP, employers need to institute a fifty percent

rehire rate. This reduction in the work force will help the employer realize the intended savings.

Although this ERIP policy might not be effective in saving money by itself, it is effective in that

it is not mandatory. Localities can decide whether or not this policy will work for them and can

act accordingly.

The ERIP policy is effective as a human resources function. An employer who offers

such a program would have a competitive advantage over an employer who does not.

Employees like to have the option of an ERIP and see this as a benefit. When employees realize

they have this benefit, they are likely to stay committed to this employer in hopes of using this

benefit when he or she becomes eligible. If employees see this as a positive benefit and are

excited to approach this milestone, they will be happy employees. Thus, the King William

County School Board will have created a positive work environment within King William

County Public Schools.

Suggestions for evaluation

With the hope that King William County Public Schools will re-implement the ERIP

policy in the future, an effective evaluation of the policy may help to drive this decision. Since

the policy’s implementation relies on funding, a cost analysis would be the best evaluation tool.

The school system would need to determine the number of employees who would become

eligible for the program upon its reauthorization. A projected cost to fund this early retirement

ERIP POLICY 26

would need to be estimated. Considering the number of employees who elect to participate in

the program, an assessment of the positions that needed to be rehired should take place.

Then, the rehire salaries need to be analyzed against the retirees’ salaries. This difference

would need to be compared to the cost of the early retirees’ benefits. An added savings in

having early retirees substitute, or help in some other project, could also be estimated. This

would help the Board evaluate the ERIP policy for cost effectiveness. Of course, the Board

could reinstate the policy regardless of cost as a consideration and benefit to its employees.

ERIP POLICY 27

References

Bolman, L. G. & Deal, T. E. (2008). Reframing organizations: Artistry, choice and leadership

(4th ed.). San Francisco, CA: Jossey-Bass.

Constitution of the United States of America. Retrieved from

http://www.usconstitution.net/const.pdf.

Constitution of Virginia. Retrieved from http://constitution.legis.virginia.gov.

Ellis, J. R., & Frey, S. H. (1982). A study of early educator retirement in Illinois public schools.

Retrieved from

http://search.proquest.com.proxy.library.vcu.edu/docview/63473281?accountid=14780

Fowler, F.C. (2013). Policy studies for educational leaders: An introduction, 4th ed. Boston:

Pearson Education, Inc.

Salazar v. Office of Personnel Management, 117 F. Supp. 610 (U.S. App. 2012)

Social Security Administration. Retrieved from http://www.ssa.gov/history/law.html.

United States of America v. Salazar, 338 F. Supp. 338 (U.S. App. 2009)

Virginia Board of Education. Retrieved from http://www.doe.virginia.gov/boe.

Virginia Retirement System. Retrieved from http://www.varetire.org/About/History.asp.

ERIP POLICY 28

Virginia Retirement System (VRS), Joint Legislative Audit and Review Commission (JLARC).

(1995). VRS Oversight Report No. 3. Retrieved from

http://vrsguide.virginia.gov/reports/Rpt171.pdf

Appendix A

VIRGINIA ACTS OF ASSEMBLY -- 1995 SESSION

CHAPTER 152

An Act to amend and reenact §§ 2.1-391, 51.1-153, 51.1-155, 51.1-155.1, 51.1-165, 51.1-205, and 51.1-206 of the Code of Virginia and to amend the Code of Virginia by adding in Title 2.1 a chapter numbered 10.5, consisting of sections numbered 2.1-116.20 through 2.1-116.26, relating to retirement and severance benefits for employees of the Commonwealth and the Workforce Transition Act of 1995.

[H 2543]Approved March 10, 1995

Be it enacted by the General Assembly of Virginia:1. That §§ 2.1-391, 51.1-153, 51.1-155, 51.1-155.1, 51.1-165, 51.1-205, and 51.1-206 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding in Title 2.1 a Chapter numbered 10.5, consisting of sections numbered 2.1-116.20 through 2.1-116.26, as follows:

CHAPTER 10.5.WORKFORCE TRANSITION ACT OF 1995.

§ 2.1-116.20. Short title; purpose.A. This chapter shall be known as the Workforce Transition Act of 1995.B. The purpose of this chapter is to provide a transitional severance benefit, under the

conditions specified, to eligible state employees who are involuntarily separated from their employment with the Commonwealth. "Involuntary separation" includes, but is not limited to, terminations and layoffs from employment with the Commonwealth, or being placed on leave without pay-layoff or equivalent status, due to budget reductions, agency reorganizations, workforce down-sizings, or other causes not related to the job performance or misconduct of the employee, but shall not include voluntary resignations. As used in this chapter, a "terminated

ERIP POLICY 29

employee" shall mean an employee who is involuntarily separated from employment with the Commonwealth.

§ 2.1-116.21. Duties of Department and executive branch agencies to involuntarily separated employees.

A. Prior to terminating or placing on leave without pay-layoff or equivalent status any employee of an agency or institution in the executive branch of government, the management of the agency or institution shall make every effort to place the employee in any vacant position within the agency for which the employee is qualified. If reemployment within the agency or institution is not possible because there is no available position for which the employee is qualified or the position offered to the employee requires relocation or a reduction in salary, the name of the employee shall be forwarded to the Department of Personnel and Training.

B. Any preferential employment rights vested in the employee under the Commonwealth's layoff policy shall not be denied, abridged, or modified in any way by the Department of Personnel and Training. The Department shall coordinate the preferential hiring of the employee, at the same salary classification, in any agency or institution of the executive branch of government. The Department shall also establish a program to assist employees in finding employment outside of state government.

C. If, as of the date the employee is terminated from employment or placed on leave without pay-layoff or equivalent status, reemployment within his agency or institution or any other agency or institution of the executive branch of government is not possible because there is no available position for which the employee is qualified or the position offered to the employee requires relocation or a reduction in salary, then the employee shall be deemed to be involuntarily separated. If such employee is otherwise eligible, he shall be entitled, under the conditions specified, to receive the transitional severance benefit conferred by this chapter.

D. The Department of Personnel and Training shall report all involuntary separations in the executive branch of government to the Department of Planning and Budget, which shall make an appropriate reduction, pursuant to § 2.1-391, in the terminating agency's maximum employment level in preparing its executive budget for the next session of the General Assembly.

§ 2.1-116.22. Eligibility for transitional severance benefit.A. Any full-time employee of the Commonwealth (i) whose position is covered by the

Virginia Personnel Act (§ 2.1-110 et seq.), (ii) whose position is exempt from the Virginia Personnel Act pursuant to subdivision A 2, A 4 (except those persons specified in subsection C of this section), A 7, A 15 or A 16 of § 2.1-116, (iii) who is employed by the State Corporation Commission, (iv) who is employed by the Virginia Workers' Compensation Commission, (v) who is employed by the Virginia Retirement System, (vi) who is employed by the State Lottery Department, (vii) who is employed by the Medical College of Virginia Hospitals and the University of Virginia Medical Center, or (viii) who is employed at a state educational institution as administrative or professional faculty (including presidents and teaching and research faculty) as defined in the Consolidated Salary Authorization for Faculty Positions in Institutions of Higher Education, 1994-95, and (a) who, on or after January 1, 1995, is involuntarily separated, or is involuntarily separated on or after July 1, 1994, if at the time of involuntary separation had attained age fifty and had fifteen or more years of service, and (b) for whom reemployment with the Commonwealth is not possible because there is no available position for which the employee is qualified or the position offered to the employee requires relocation or a reduction in salary, shall be eligible, under the conditions specified, for the transitional severance benefit conferred by this chapter. The date of involuntary separation shall mean the

ERIP POLICY 30

date an employee was terminated from employment or placed on leave without pay-layoff or equivalent status.

B. An otherwise eligible employee whose position is contingent upon project grants as defined in the Catalogue of Federal Domestic Assistance, shall not be eligible for the transitional severance benefit conferred by this chapter unless the funding source had agreed to assume all financial responsibility therefor in its written contract with the Commonwealth.

C. Members of the Judicial Retirement System (§ 51.1-300 et seq.) and officers elected by popular vote shall not be eligible for the transitional severance benefit conferred by this chapter.

D. Eligibility shall commence on the date of involuntary separation.§ 2.1-116.23. Transitional severance benefit conferred.A. On his date of involuntary separation, an eligible employee with (i) two years' service

or less to the Commonwealth shall be entitled to receive a transitional severance benefit equivalent to four weeksof salary; (ii) three years through and including nine years of consecutive service to the Commonwealth shall be entitled to receive a transitional severance benefit equivalent to four weeks of salary plus one additional week of salary for every year of service over two years; (iii) ten years through and including fourteen years of consecutive service to the Commonwealth shall be entitled to receive a transitional severance benefit equivalent to twelve weeks of salary plus two additional weeks of salary for every year of service over nine years; or (iv) fifteen years or more of consecutive service to the Commonwealth shall be entitled to receive a transitional severance benefit equivalent to two weeks of salary for every year of service, not to exceed thirty-six weeks of salary.

B. Transitional severance benefits shall be computed by the terminating agency's payroll department. Partial years of service shall be rounded up to the next highest year of service.

C. Transitional severance benefits shall be paid in the same manner as normal salary. In accordance with § 60.2-229, transitional severance benefits shall be allocated to the date of involuntary separation. The right of any employee who receives a transitional severance benefit to also receive unemployment compensation pursuant to § 60.2-100 et seq. shall not be denied, abridged, or modified in any way due to receipt of the transitional severance benefit; however, any employee who is entitled to unemployment compensation shall have his transitional severance benefit reduced by the amount of such unemployment compensation. Any offset to a terminated employee's transitional severance benefit due to reductions for unemployment compensation shall be paid in one lump sum at the time the last transitional severance benefit payment is made.

D. For twelve months after the employee's date of involuntary separation, the employee shall continue to be covered under the (i) health insurance plan created in § 2.1-20.1 for the Commonwealth's employees, if he participated in such plan prior to his date of involuntary separation, and (ii) group life insurance plan administered by the Virginia Retirement System pursuant to Chapter 5 (§ 51.1-500 et seq.) of Title 51.1. During such twelve months, the terminating agency shall continue to pay its share of the terminated employee's premiums. Upon expiration of such twelve month period, the terminated employee shall be eligible to purchase continuing health insurance coverage under COBRA.

E. Transitional severance benefit payments shall cease if a terminated employee is reemployed or hired in an individual capacity as an independent contractor or consultant by any agency or institution of the Commonwealth during the time he is receiving such payments.

ERIP POLICY 31

F. All transitional severance benefits payable pursuant to this section shall be subject to applicable federal laws and regulations.

§ 2.1-116.24. Retirement program.A. In lieu of the transitional severance benefit provided in § 2.1-116.23, any otherwise

eligible employee who, on the date of involuntary separation, is also (i) a vested member of the Virginia Retirement System or the State Police Officers' Retirement System and (ii) at least fifty years of age, may elect to have the Commonwealth purchase on his behalf years to be credited to either his age or creditable service or a combination of age and creditable service, except that any years of credit purchased on behalf of a member of the Virginia Retirement System or the State Police Officers' Retirement System who is eligible for unreduced retirement shall be added to his creditable service and not his age. The cost of each year of age or creditable service purchased by the Commonwealth shall be equal to fifteen percent of the employee's present annual compensation. The number of years of age or creditable service to be purchased by the Commonwealth shall be equal to the quotient obtained by dividing (i) the cash value of the benefits to which the employee would be entitled under subsections A and D of § 2.1-116.23 by (ii) the cost of each year of age or creditable service. Partial years shall be rounded up to the next highest year. Deferred retirement under the provisions of § 51.1-153 C and § 51.1-205 C, and disability retirement under the provisions of § 51.1-156 et seq. and § 51.1-209, shall not be available under this section.

B. In lieu of the (i) transitional severance benefit provided in § 2.1-116.23 and (ii) the retirement program provided in subsection A, any employee who is otherwise eligible may take immediate retirement pursuant to § 51.1-155.1.

C. The retirement allowance for any employee electing to retire under this section who, by adding years to his age, is between ages fifty-five and sixty-five, shall be reduced on the actuarial basis provided in subdivision A 2 of § 51.1-155.

§ 2.1-116.25. Costs associated with this chapter; payment.A. The terminating agency shall pay all costs associated with the provisions of this

chapter within the twelve months following the date of an employee's involuntary separation, or within such shorter period as may be required. The costs shall be paid first from appropriations available to the terminating agency. If such sums are insufficient, then, if the agency's governing authority certifies that the agency is unable to pay the costs when due from appropriations available to the terminating agency without affecting the agency's ability to deliver essential services, aid to localities, or aid to individuals, the State Treasurer shall make a treasury loan to the agency to be used to finance the unsatisfied balance of the agency's obligations.

B. As used herein, the "governing authority" shall mean (i) for an agency in the executive branch, the Governor or his designee; (ii) for an agency in the judicial branch, the Supreme Court of Virginia; (iii) and for an agency in the legislative branch or an independent agency, the appropriate collegial body.

C. Any treasury loan made pursuant to subsection A shall be repaid by the agency in the following order: (i) first, from unexpended fund balances available to the agency; (ii) next, from the unexpended year-end balances, less mandated uses as set out in the Appropriations Act, of all other state agencies and institutions in the terminating agency's branch of government (i.e., judicial, legislative, or executive); and (iii) finally, from such appropriations as the General Assembly may provide for such purpose. In budgeting for the payment of these costs, the general fund shall bear its actual share of such costs.

§ 2.1-116.26. Review of program.

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The Senate Finance Committee and the House Appropriations Committee shall periodically review the transitional severance program established by this chapter, and shall report their findings to the Governor and the members of the General Assembly on July 1, 1998, and every three years thereafter.

§ 2.1-391. Duties of Department.The Department shall have the following duties:1. Development and direction of an integrated policy analysis, planning, and budgeting

process within state government.2. Review and approval of all sub-state district systems boundaries established or

proposed for establishment by state agencies.3. Formulation of an executive budget as required in this chapter. In implementing this

provision, the Department of Planning and Budget shall (i) utilize the resources and determine the manner of participation of any executive agency as the Governor may determine necessary to support an efficient and effective budget process notwithstanding any contrary provision of law and (ii) make an appropriate reduction in the appropriation and maximum employment level of any state agency or institution in the executive branch of government which reports involuntary separations from employment with the Commonwealth due to budget reductions, agency reorganizations, or workforce down-sizings, or voluntary separations from employment with the Commonwealth as provided in the second and third enactments of the act of the General Assembly creating the Workforce Transition Act of 1995 (§ 2.1-116.20 et seq.). In the event an agency reduces its workforce through privatization of certain functions, the funds associated with such functions shall remain with the agency to the extent of the savings resulting from the privatization of such functions.

4. Conduct of policy analysis and program evaluation for the Governor.5. Continuous review of the activities of state government focusing on budget

requirements in the context of the goals and objectives determined by the Governor and the General Assembly and monitoring the progress of agencies in achieving goals and objectives.

6. Operation of a system of budgetary execution to assure that agency activities are conducted within fund limitations provided in the appropriations act and in accordance with gubernatorial and legislative intent.

7. Development and operation of a system of standardized reports of program and financial performance for management.

8. Coordination of statistical data by reviewing, analyzing, monitoring, and evaluating statistical data developed and used by state agencies and by receiving statistical data from outside sources, such as research institutes and the federal government.

9. Assessment of the impact of federal funds on state government by reviewing, analyzing, 4 of 10 monitoring, and evaluating the federal budget, as well as solicitations, applications, and awards for federal financial aid programs on behalf of state agencies.

10. Review and verification of the accuracy of agency estimates of receipts from donations, gifts or other nongeneral fund revenue.

§ 51.1-153. Service retirement.A. Normal retirement.––Any member in service at his normal retirement date with five or

more years of creditable service may retire at any time upon written notification to the Board setting forth the date the retirement is to become effective. Any member in service who was denied membership prior to July 1, 1987, as a result of being age sixty or over when first

ERIP POLICY 33

employed may retire at any time after his normal retirement date and the requirement of having five or more years of service shall not apply.

B. Early retirement.––Any member in service who has attained his fifty-fifth birthday with five or more years of creditable service may retire prior to his normal retirement date upon written notification to the Board setting forth the date the retirement is to become effective.

C. Deferred retirement for members terminating service.––Any member who terminates service after five or more years of creditable service may retire under the provisions of subsection A or B of this section if he has not withdrawn his accumulated contributions prior to the effective date of his retirement or if he has five or more years of creditable service for which his employer has paid the contributions and such contributions cannot be withdrawn. For the purposes of this subsection, any requirements as to the member being in service shall not apply. No member shall be entitled to the benefits of this subsection if his employer certifies that his service was terminated because of dishonesty, malfeasance, or misfeasance in office. The certification may be appealed to the Board.

D. 50/10 retirement.––Any member in service on or after January 1, 1994, who has attained his fiftieth birthday with ten or more years of creditable service may retire prior to his normal retirement date upon written notification to the Board setting forth the date the retirement is to become effective. A member who is a state employee shall not be eligible for retirement pursuant to this subsection unless the employee has entered into a binding agreement with the Department of Personnel and Training providing that the employee shall not thereafter re-enter into full-time or part-time employment with any agency in the executive branch of the Commonwealth for a period of two years following retirement.

D. E. Effective date of retirement.––The effective date of retirement shall be after the last day of service of the member, but shall not be more than ninety days prior to the filing of the notice of retirement.

E. F. Notification on behalf of member.––If the member is physically or mentally unable to submit written notification of his intention to retire, the member's appointing authority may submit notification on his behalf.

§ 51.1-155. Service retirement allowance.A. Retirement allowance. A member shall receive an annual retirement allowance,

payable for life, as follows:1. Normal retirement. - The allowance shall equal 1.50 percent of the first $13,200 of

average final compensation plus 1.65 percent of average final compensation in excess of $13,200, multiplied by the amount of creditable service. If the member is credited with thirty-five or more years of service, he shall receive 1.65 percent of his average final compensation multiplied by the amount of his creditable service. On and after October 1, 1994, any employee or local officer who is a member or beneficiary of a retirement system administered by the Board shall receive an additional retirement allowance equal to three percent of the service retirement allowance payable under this section; provided that, for purposes of this additional retirement allowance, the term employee shall include only those employees of political subdivisions that have adopted a resolution providing for such an allowance under subsection B of § 51.1-130. Average final compensation attributable to service as Governor, Lieutenant Governor,Attorney General, or member of the General Assembly shall not be included in computing this additional retirement allowance.

2. Early retirement; applicable to teachers, state employees, and certain others. - The allowance shall be determined in the same manner as for normal retirement with creditable

ERIP POLICY 34

service and average final compensation being determined as of the date of actual retirement. If the member has less than thirty years of service at retirement, the amount of the retirement allowance shall be reduced on an actuarial equivalent basis for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which he would have completed a total of thirty years of creditable service. The provisions of this subdivision shall apply to teachers and state employees. These provisions shall also apply to employees of any political subdivision that participates in the retirement system if the political subdivision makes the election provided in subdivision 3 of this subsection.

3. Early retirement; applicable to employees of certain political subdivisions. - The allowance shall be determined in the same manner as for normal retirement with creditable service and average finalcompensation being determined as of the date of actual retirement. If the creditable service of themember equals thirty or more years but the sum of his age at retirement plus his creditable service at retirement is less than ninety, the amount of the retirement allowance shall be reduced on an actuarial equivalent basis for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which the sum of his then attained age plus his then creditable service would have been equal to ninety or more had he remained in service until such date. If the member has less than thirty years of creditable service, the retirement allowance shall be reduced for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which he would have completed a total of at least thirty years of creditable service and his then creditable service plus his then attained age would have been equal to ninety or more. The provisions of this subdivision shall apply to the employees of any political subdivision that participates in the retirement system. The participating political subdivision may, however, elect to provide its employees with the early retirement allowance set forth in subdivision 2 of this subsection.Any election pursuant to this subdivision shall be set forth in a legally adopted resolution.

4. Additional allowance. - In addition to the allowance payable under subdivisions 1, 2, and 3 of this subsection, a member shall receive an additional allowance which shall be the actuarial equivalent, for his attained age at the time of retirement, of the excess of his accumulated contributions transferred from the abolished system to the retirement system, including interest credited at the rate of two percent compounded annually since the transfer to the date of retirement, over the annual amounts equal to four percent of his annual creditable compensation at the date of abolishment for a period equal to his period of membership in the abolished system.

5. 50/10 retirement. - The allowance shall be payable in a monthly stream of payments equal to the greater of (i) the actuarial equivalent of the benefit the member would have received had he terminated service and deferred retirement to age fifty-five or (ii) the actuarially calculated present value of the member's accumulated contributions, including accrued interest.

B. Beneficiary serving in position covered by this title.––If a beneficiary of a service retirement allowance under this chapter, other than a member of the General Assembly, is at any time in service as an employee in a position covered for retirement purposes under the provisions of this or any chapter other than Chapter 7 (§ 51.1-700 et seq.) of this title, his retirement allowance shall cease while so employed.

§ 51.1-155.1. Exceptions from general early retirement provisions for certain state employees.

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A. Effective January 1, 1994, members of the retirement system, whose positions are described by either subdivision A 3 or A 16 of § 2.1-116 as in effect on January 1, 1994, or agency heads appointed a state board, state commission, or state council, who are involuntarily separated from state service and who have twenty or more years of creditable service at the date of separation, may retire without the reduction in with the retirement allowance required by as provided in subdivision A 2 1 of § 51.1-155, upon attaining age fifty-five.

B. For the purposes of this section, "involuntary separation" means any dismissal, requested resignation, or failure to obtain reappointment, except in case of a conviction for a felony or crime involving moral turpitude or dishonesty.

§ 51.1-165. Optional benefits.A. Any member not taking 50/10 retirement as provided in § 51.1-153 or § 51.1-205 may

elect to have his retirement allowance payable under one of the options set forth in this section subsection and receive the actuarial equivalent of the retirement allowance otherwise payable to him. The election of an optional benefit shall be subject to the approval of the Board.

1. Straight life option. - A member may elect to receive an increased retirement allowance in lieu of any death benefits.

2. Joint and last-survivor option. - A member may elect to receive a decreased retirement allowance during his lifetime and have the retirement allowance, or one-half thereof, continued after his death to a contingent annuitant during the lifetime of such person. If the member's retirement is for disability, the election of the retirement allowance to be continued after the member's death shall be limited to one-half of the decreased retirement allowance received by the member during his lifetime. In case of such an election, death benefits that might otherwise be provided shall not be payable upon the death of the member unless death of the member occurs prior to the effective date of retirement as set forth in subsection B of this section. This option may not be elected by a member if the social security option of subdivision 3 of this subsection has previously been elected, nor may it be elected if the contingent annuitant is not the spouse of the member and the actuarially computed present value of the payments expected to be made to the member is less than one-half of the actuarially computed combined present value of the total payments expected to be made to the member and the contingent annuitant.

3. Social security option. - If a member retires from service on or after January 1, 1994, he may elect to receive a temporary increased retirement allowance beginning on the member's effective date of retirement and continuing until the member reaches age fifty-nine and one-half or any whole age up through age seventy and one-half, as designated by the member at the time of his retirement. Upon attaining the age designated, the temporary allowance shall cease and the retirement allowance shall be reduced on an actuarially equivalent basis. The temporary retirement allowance specified by the member shall not result in more than a fifty percent reduction in the member's benefit as provided in § 51.1-155. Any member electing to receive such an allowance shall not be entitled to a joint and last survivor benefit.

4. Other options. - Some other benefits may be paid either to the member or to contingent annuitants he elects. However, the actuarially computed expected duration of the payment of any such benefits shall not exceed the actuarially computed life expectancy of the member and his spouse, and the actuarially computed present value of the payments expected to be made to the member shall be greater than one-half of the actuarially computed combined present value of the total payments expected to be made to the member and any contingent annuitant.

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B. Any member taking 50/10 retirement as provided in § 51.1-153 or § 51.1-205 may elect to have his retirement allowance payable under the option set forth in this subsection and receive the actuarial equivalent of the retirement allowance otherwise payable to him. The election of this optional benefit shall be subject to the approval of the Board. 50/10 retirement joint and last-survivor option. - A member may elect to receive a decreased retirement allowance during his lifetime and have the retirement allowance continued after his death to a contingent annuitant during the lifetime of such person. The retirement allowance pursuant to this option shall be determined as provided in subdivision A 5 of § 51.1-155, except (i) the present value of future retirement benefits shall be calculated based on the life expectancies of both the member and the contingent annuitant and (ii) the actuarially computed present value of the payments expected to be made under this option shall be actuarially equivalent to the actuarially computed present value of the payments expected to be made to the member as determined pursuant to subdivision A 5 of § 51.1-155.

B. C. The election of any one of the options stated in this section shall be null and void if the member dies prior to the Board receiving written notification of the member's effective date of retirement. The election of a joint and last-survivor option shall be null and void if the contingent annuitant dies before the member's retirement. For purposes of this subsection, retirement shall be deemed to commence on the effective date of a member's service retirement or disability. If the death of the member occurs prior to the effective date of retirement but after the Board has received written notification of the member's effective date of retirement, benefits shall be paid in accordance with the provisions of § 51.1-163 and the requirement that the member be in service shall not apply.

C. D. A member who has elected any of the options stated in this section may revoke such an election by written notification to the Board any time prior to the later of the effective date of retirement or the date of written notification to the Board of retirement of the member.

D. E. A retired member who has elected a joint and last-survivor option may, by written notification to the Board, revoke such election and elect to receive from time of notification either the retirement allowance to which he would have been entitled had no option been elected initially or an allowance actuarially equivalent thereto under a joint and last-survivor option with a different contingent annuitant, if (i) the original contingent annuitant has died, (ii) a final decree of divorce of the retired member from the original contingent annuitant has been entered, or (iii) the written consent of the original contingent annuitant, together with evidence satisfactory to the Board of the good health of the original contingent annuitant, is submitted with the notification. If the provisions of this subsection are invoked by a retired member on the basis of the member's having been divorced from his contingent annuitant and the marriage had been of a duration of twenty years or more, the provisions of this subsection shall not be applicable until the death or remarriage of the former spouse unless such spouse consents in writing to the revocation of the option prior to death or remarriage.If such an election is made as a result of the death or divorce of the contingent annuitant, the benefit payable to the retired member may be adjusted retroactively for a period of not more than sixty days from the date the Board first receives notification of the desire of the retired member to make such a change.

E. F. Subject to the provisions of subsection D E of this section, any member who retires on or after July 1, 1986, and returns to covered employment shall not be entitled to select a different optional benefit upon making application for retirement a second time.

§ 51.1-205. Service retirement generally.

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A. Normal retirement. Any member in service at his normal retirement date with five or more years of creditable service may retire upon written notification to the Board, setting forth the date the retirement is to become effective. Any member, except one appointed by the Governor or elected by the people, who attains seventy years of age shall be retired forthwith. Any employer, subsequent to the employee's normal retirement date, may provide for compulsory service retirement upon a determination that age is a bona fide occupational qualification reasonably necessary to the normal operation of the particular business or that the employee is incapable of performing his duties in a safe and efficient manner. Any such determination shall be made by the employer.

B. Early retirement. Any member in service who has attained his fiftieth birthday with five or more years of creditable service may retire upon written notification to the Board setting forth the date the retirement is to become effective.

C. Deferred retirement for members terminating service. Any member who terminates service after five or more years of creditable service, may retire under the provisions of subsection A or B of this section if he has not withdrawn his accumulated contributions prior to the effective date of his retirement or if he has five or more years of creditable service for which his employer has paid the contributions and such contributions cannot be withdrawn. For the purposes of this subsection, any requirements as to the member being in service shall not apply. No member shall be entitled to the benefits of this subsection if his employer certifies that his service was terminated because of dishonesty, malfeasance, or misfeasance in office. The certification may be appealed to the Board.

D. 50/10 retirement. Any member in service on or after January 1, 1994, who has attained his fiftieth birthday with ten or more years of creditable service may retire prior to his normal retirement date upon written notification to the Board setting forth the date the retirement is to become effective. A member shall not be eligible for retirement pursuant to this subsection unless the member has entered into a binding agreement with the Department of Personnel and Training providing that the member shall not thereafter re-enter into full-time or part-time employment with any agency in the executive branch of the Commonwealth for a period of two years following retirement.

D. E. Effective date of retirement. The effective date of retirement shall be after the last day of service of the member, but shall not be more than ninety days prior to the filing of the notice of retirement.

E. F. Notification on behalf of member. If the member is physically or mentally unable to submit written notification of his intention to retire, the member's appointing authority may submit notification on his behalf.

§ 51.1-206. Service retirement allowance.A. A member shall receive an annual retirement allowance, payable for life, as follows:1. Normal retirement. - The allowance shall equal 1.50 percent of the first $13,200 of

average final compensation plus 1.65 percent of average final compensation in excess of $13,200 multiplied by the amount of creditable service. If the member is credited with thirty-five or more years of service, he shall receive 1.65 percent of his average final compensation multiplied by the amount of creditable service. On and after October 1, 1994, any state police officer who is a member or beneficiary of a retirement system administered by the Board shall receive an additional retirement allowance equal to three percent of the service or disability retirement allowance payable under this section. Average final compensation attributable to service as

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Governor, Lieutenant Governor, Attorney General, or member of the General Assembly shall not be included in computing this additional retirement allowance.

2. Early retirement. - The allowance shall be determined in the same manner as for normal retirement with creditable service and average final compensation being determined as of the date of actual retirement. If the member has less than twenty-five years of service at retirement, the amount of the retirement allowance shall be reduced on an actuarial equivalent basis for the period by which the actualretirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on or after his fiftieth birthday on which he would have completed a total of twenty-five years of creditable service.

3. 50/10 retirement. - The allowance shall be payable in a monthly stream of payments equal to the greater of (i) the amount the member would receive if he had he taken early retirement or (ii) the actuarially calculated present value of the member's accumulated contributions, including accrued interest.

B. In addition to the allowance payable under subsection A of this section, a member shall receive an additional allowance equal to $7,080 annually from date of retirement until his sixty-fifth birthday. Such allowance shall be reviewed and adjusted by the Board biennially to an amount recommended by the actuary of the Virginia Retirement System based upon increases in social security benefits in the interim. This subsection shall not apply to the following: (i) any member who qualifies for retirement under subsection C of § 51.1-205 and is credited with less than twenty years' service rendered in a hazardous position or (ii) any member employed initially on or after July 1, 1974, who is credited with less than twenty years' service rendered in a hazardous position.

C. If a beneficiary of a service retirement allowance under this chapter is at any time in service as an employee in a position covered for retirement purposes under the provisions of this or any chapter other than Chapter 7 (§ 51.1-700 et seq.) of this title, his retirement allowance shall cease while so employed.

2. That in keeping with the purposes of this act and to induce eligible state employees to voluntarily resign from employment with the Commonwealth, any full-time employee of the Commonwealth (i) whose position is covered by the Virginia Personnel Act (§ 2.1-110 et seq. of the Code of Virginia), (ii) whose position is exempt from the Virginia Personnel Act pursuant to subdivision A 2, A 4 (except those persons specified in subsection C of § 2.1-116.22 of the Code of Virginia), A 7, A 15 or A 16 of § 2.1-116 of the Code of Virginia, (iii) who is employed by the State Corporation Commission, (iv) who is employed by the Virginia Workers' Compensation Commission, (v) who is employed by the Virginia Retirement System, (vi) who is employed by the State Lottery Department, (vii) who is employed by the Medical College of Virginia Hospitals or the University of Virginia Medical Center, or (viii) who is employed at a state educational institution as administrative or professional faculty (but excluding presidents and teaching and research faculty) as defined in the Consolidated Salary Authorization for Faculty Positions inInstitutions of Higher Education, 1994-95, may, subject to the conditions set forth in the fifth enactment of this act, elect to voluntarily resign and receive a severance benefit equivalent to (i) four weeks of salary if the employee has two years or less of service or (ii) two weeks of salary for each year of service, not to exceed thirty-six weeks of salary, if the employee has more than two years of service, together with the benefits conferred by subsection D of § 2.1-116.23 of the Code of Virginia. Such employee shall also receive, in

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lieu of any unemployment compensation benefits to which the employee may be entitled, an amount, payable to the employee by the terminating agency on the employee's date of termination, equal to the present value of the maximum unemployment compensation the employee would have received pursuant to Title 60.2 of the Code of Virginia had he been eligible for such benefits by virtue of the termination of his employment, not to exceed $5,000. The additional terms and conditions specified in § 2.1-116.23 shall apply to those eligible state employees making such election and to the transitional severance benefit payable hereunder. Written application of an eligible employee's election to participate in this incentive program shall be made to his employing agency no later than March 31, 1995. An eligible employee's resignation pursuant to the program established by this enactment shall be effective May 1, 1995, unless an alternative date is authorized by the governing authority, as defined in the fifth enactment of this act, but in no event later than July 1, 1996.

3. That in lieu of receiving a transitional severance benefit under the second enactment of this act, but in keeping with the purposes of this act and to induce eligible state employees to voluntarily retire from employment with the Commonwealth, any full-time employee of the Commonwealth (i) whose position is covered by the Virginia Personnel Act (§ 2.1-110 et seq. of the Code of Virginia), (ii) whose position is exempt from the Virginia Personnel Act pursuant to subdivision A 2, A 4 (except those persons specified in subsection C of § 2.1-116.22 of the Code of Virginia), A 7, A 15 or A 16 of § 2.1-116 of the Code of Virginia, (iii) who is employed by the State Corporation Commission, (iv) who is employed by the Virginia Workers' Compensation Commission, (v) who is employed by the Virginia Retirement System, (vi) who is employed by the State Lottery Department, (vii) who is employed by the Medical College of Virginia Hospitals or the University of Virginia Medical Center, or (viii) who is employed at a state educational institution as administrative or professional faculty (but excluding presidents and teaching and research faculty) as defined in the Consolidated Salary Authorization for Faculty Positions in Institutions of Higher Education, 1994-95, and who (a) is a vested member of the Virginia Retirement System and (b) is at least fifty years of age, may, subject to the conditions set forth in the fifth enactment of this act, elect to have the Commonwealth purchase on his behalf years to be credited to either his age or creditable service or a combination of age and creditable service, except that any years of credit purchased on behalf of a member of the Virginia Retirement System or the State Police Officers' Retirement System who is eligible for unreduced retirement shall be added to his creditable service and not his age. The cost of each year of age or creditable service purchased by the Commonwealth shall be equal to fifteen percent of the employee's present annual compensation. The number of years of age or creditable service to be purchased by the Commonwealth shall be equal to the quotient obtained by dividing (i) the cash value of the benefits to which the employee would be entitled under the second enactment of this act by (ii) the cost of each year of age or creditable service. The additional terms and conditions specified in § 2.1-116.24 of the Code of Virginia shall apply to those eligible state employees making such election. Written notification of an eligible employee's election to participate in this retirement incentive program shall be received by the Virginia Retirement System no later than March 31, 1995. An eligible employee's retirement pursuant to the program established by this enactment shall be effective May 1, 1995, unless an alternative date is authorized by the

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governing authority, as defined in the fifth enactment of this act, but in no event later than July 1, 1996.

4. That the costs associated with an employee's resignation or retirement pursuant to the incentive programs established by the second or third enactment of this act shall be paid within twelve months following the date of the employee's resignation or retirement, or within such shorter period as may be required, by the agency with which the employee was employed. The costs shall be paid first from appropriations available to the agency. If such sums are insufficient, then, if the agency's governing authority (as defined in the fifth enactment of this act) certifies that the agency is unable to pay the costs when due from appropriations available to the agency without affecting the agency's ability to deliver essential services, aid to localities, or aid to individuals, the State Treasurer shall make a treasury loan to the agency to be used to finance the unsatisfied balance of the agency's obligations. Any such treasury loan shall be repaid by the agency in the following order: (i) first, from unexpended fund balances available to the agency; (ii) next, from the unexpended year-end balances, less mandated uses as set out in the Appropriations Act, of all other state agencies and institutions in the terminating agency's branch of government (i.e., judicial, legislative, or executive); and (iii) finally, from such appropriations as the General Assembly may provide for such purpose. In budgeting for the payment of these costs, the general fund shall bear its actual share of such costs.

5. That the following employees shall not be eligible for the incentive programs established by the second and third enactments of this act: (i) members of the Judicial Retirement System (§ 51.1-300 et seq. of the Code of Virginia); (ii) members of the State Police Officers' Retirement System (§ 51.1-200 et seq. of the Code of Virginia), except as provided in the tenth enactment of this act; (iii) "law-enforcement officers" as defined in § 9-169 of the Code of Virginia and "correctional" and "jail officers" as defined in § 53.1-1 of the Code of Virginia; (iv) presidents and teaching and research faculty as defined in the Consolidated Salary Authorization for Faculty Positions in Institutions of Higher Education, 1994-95, at state educational institutions, except as provided in the ninth enactment of this act; and (v) employees whose positions are contingent upon project grants as defined in the Catalogue of Federal Domestic Assistance. Otherwise eligible employees desiring to participate in the incentive programs established by the second and third enactments of this act shall submit a signed application to their agency head. Submission of such signed application no later than March 31, 1995, shall satisfy the requirement that written notification of an eligible employee's request to participate in these incentive programs be provided by such date. Such employees shall not be eligible for these incentive programs unless accepted by the appropriate governing authority. The agency shall notify applying employees whether their application has been accepted by April 15, 1995. The criteria for evaluation and acceptance of an application shall be subject to policies and procedures developed by the appropriate governing authority. As used herein, the "governing authority" shall mean (i) for an agency in the executive branch, the Governor or his designee; (ii) for an agency in the judicial branch, the Supreme Court of Virginia; (iii) and for an agency in the legislative branch or an independent agency, the appropriate collegial body.

6. That any eligible employee who elects to participate in an incentive program established by the second or third enactments of this act shall not be employed in any capacity, or hired in an individual capacity as an independent contractor or consultant to

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perform essentially the same functions as performed by the employee at the time of his resignation or retirement, by the Commonwealth for two years after his date of separation from employment.

7. That in keeping with the purposes of this act, an otherwise eligible employee who, on or after January 1, 1995, elects to participate in any other program providing incentives for voluntary termination of employment offered by the Commonwealth shall be eligible, under the conditions specified, for the benefits established by the second and third enactments of this act, but in no event shall an employee receive the benefits of more than one incentive program.

8. That any employee who leaves his employment with the Commonwealth pursuant to this act shall be paid for his annual and sick leave balances, if any, in accordance with the applicable administrative policies and procedures in effect on July 1, 1994.

9. That in keeping with the purposes of this act and as part of the higher education restructuring plan pursuant to Item 183 E.1, 2 and 3 of Chapter 966 of the Acts of Assembly of 1994, the Board of Visitors may elect to permit full-time teaching and research faculty, including administrative and professional faculty, at any senior institution of higher education or Richard Bland College, and the State Board of Community Colleges may elect to permit full-time teaching and research faculty, including administrative and professional faculty, employed by the Virginia Community College System, to participate in the incentive programs established in the second and third enactments of this act. Upon a Board's election, but no earlier than April 1, 1995, and no later than June 30, 1996, an eligible employee shall make written application to participate in the incentive program described in the (i) second enactment of this act to his employing agency or institution or (ii) third enactment of this act to the Virginia Retirement System. Positions and funds associated with any restructuring plan approved by the Boards shall not be subject to the provisions of § 2.1-391 of the Code of Virginia. Retirements and resignations under this enactment shall be effective no later than July 1, 1996. The costs associated with an employee's resignation or retirement pursuant to the incentive programs established by the second or third enactment of this act shall be paid within twelve months following the date of the employee's resignation or retirement, or within such shorter period as may be required, by the agency with which the employee was employed. The costs shall be paid first from appropriations available to the agency. If such sums are insufficient, then, if the Governor certifies that the agency is unable to pay the costs when due from appropriations available to the agency without affecting the agency's ability to deliver essential services, the State Treasurer shall make a treasury loan to be used to finance the unsatisfied balance of the agency's obligations. Any such treasury loan shall be repaid by the agency from unexpended fund balances available to the agency.

10. That in keeping with the purposes of this act and as part of the restructuring plan of the Department of State Police and upon the Governor's approval, members of the State Police Officers' Retirement System (§ 51.1-200 et seq. of the Code of Virginia) may participate in the incentive programs described in the second and third enactments of this act. Upon the Governor's approval of any restructuring plan, but no earlier than April 1, 1995, and no later than June 30, 1996, an eligible employee shall make written application to participate in the incentive program described in the (i) second enactment of this act to his employing agency or (ii) third enactment of this act to the Virginia Retirement System.

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Positions and funds associated with any restructuring plan approved by the Governor shall not be subject to the provisions of § 2.1-391 of the Code of irginia. Retirements and resignations under this enactment shall be effective no later than July 1, 1996. The costs associated with an employee's resignation or retirement pursuant to the incentive programs established by the second or third enactment of this act shall be paid in the same manner as is prescribed in § 2.1-116.25 of the Code of Virginia.

11. That any employee of the Commonwealth who applied for retirement under the Virginia Retirement System (§ 51.1-124.1 et seq. of the Code of Virginia) or the State Police Officers' Retirement System (§ 51.1-200 et seq. of the Code of Virginia) on or before December 1, 1994, shall not be eligible for the incentive programs established in the second or third enactments of this act, or for the benefits provided by Chapter 10.5 (§ 2.1-116.20 et seq.) of the Code of Virginia.

12. That the Virginia Retirement System shall commence implementation of the provisions of this act amending §§ 51.1-153, 51.1-155, 51.1-155.1, 51.1-165, 51.1-205, and 51.1-206 of the Code of Virginia by May 1, 1995.

13. That an emergency exists and this act is in force from its passage.

Appendix B

File: GBOA-REARLY RETIREMENT

A. Generally

The King William County School Board provides full time employees covered by the Virginia Retirement System (VRS) a plan of early retirement as set forth in this regulation. Applications for this early retirement program must be received on or before December 15th for the ensuing year unless the superintendent approves a waiver.

This incentive program for Early Retirement is based on the appropriation of funds. It is reauthorized each year by the School Board following the approval of the annual budget.

B. Eligibility

To be eligible for benefits under the early retirement program, full-time employed prior to July 1, 2007 must have been employed for five (5) consecutive years by the King William County School Board. Full-time personnel employed on or after July 1, 2007, must have been employed for ten (10) consecutive years by the King William County School Board. In addition, eligible employees must have twenty (20) years of coverage under the Virginia Retirement System (VRS), must be employed by the King William County School Board at the time of retirement, and must be between 50 (by August 31) and the age eligible for Medicare. Upon meeting all of the requirements to participate in the early retirement plan, the employee may remain in the program for no more than seven (7) years from the date early retirement benefits are first paid or until he/she is eligible for Medicare, whichever occurs first. An employee may not receive early retirement benefits concurrent with disability retirement.

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C. Formula and Benefits

Employees receiving early retirement benefits under this plan shall receive an annual amount equal to fifteen (15) percent of the final base salary. Early retirement benefits shall be paid for as long as the employee is an eligible participant. Health insurance is available at the employee’s expense until the employee becomes eligible for Medicare benefits.

D. Requirements

Early retirees will be required to work two (2) days per contract month. Ten (10) month employees will be required to work twenty (20) days per calendar year, eleven (11) month employees will be required to work twenty-two (22) days per calendar year and twelve (12) month employees will be required to work twenty-four (24) days per calendar year. There must be a minimum separation from service of at least 30 regularly scheduled working days from the date of retirement to any reemployment with the School Board. The tasks and the days assigned shall be determined by mutual agreement between the superintendent or his/her designee and the retiree. Early retirees may receive across the board cost-of-living increases, subject to approval by the School Board. KING WILLIAM COUNTY PUBLIC SCHOOLS

File: GBOA-R (Page 2)

Employees should refer to the policy manual (GBOA, GBOA-R) for details regarding the formula and benefits, requirements, and withdrawal procedures from the program. This incentive program for Early Retirement is based on the appropriation of funds. It is reauthorized each year by the School Board following the approval of the annual budget.

Adopted: September 11, 2007

Revised: January 20, 2009

Cross Ref.: GC Professional Staff

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KING WILLIAM COUNTY PUBLIC SCHOOLSAppendix C

Interview Questions

1. How did this policy come about?

2. What is the purpose of the policy?

3. What is your role with respect to this policy’s [development, implementation]?

4. Who were some other people, or other groups, interested in this policy?

5. What kinds of things were considered as the policy was developed/implemented?

6. What are some strengths of the policy?

7. How did you get “buy-in” for the policy?

8. What did the process look like for implementing the policy?

9. Is there any language in the policy that is bothersome to you?

10. What is your perception of the success of implementation of this policy?

11. How will you know the policy is doing what it is intended to do?

12. Do you have anything else you’d like to add that hasn’t been talked about?