Paid to Leave: Generous Teacher Buyouts at East Lansing Public Schools

An early-retirement incentive may actually have some East Lansing Public School teachers putting off retirement in hopes of getting a lucrative seniority bonus, says Michael Van Beek, the director of education policy at the Mackinac Center for Public Policy.

East Lansing gives its top three teachers in seniority up to 50 percent of their salary when they retire, according to the teacher’s union contract. Teachers with 15 years or more get 30 percent of their annual salary; those with 20 years get 40 percent; and those with 25 years get 50 percent.

Teachers hired after July 1, 1992 are not eligible for the incentive.

“If the goal is to save money by incentivizing teachers to retire, the incentive for teachers is to hang around until you are the top three,” Van Beek said. “Can you hang around for $35,000, $40,000? Buy a boat when you retire? Yeah.”

Van Beek said before 2007, all retiring teachers received up to 50 percent of the annual salary as part of a retirement incentive. He said that was changed to just include the top three.

The lucrative retirement bonus is rare in Michigan schools, Van Beek said.

East Lansing Superintendent David Chapin didn’t respond to an e-mail and a message left at his office.

~~~~~

See also:

Michigan Teacher Pay 16.5 Percent Higher Than Indiana

The Salary History of a Michigan Public School Teacher

Budget Savings Drained and Raises Continue at Alpena Schools

Paying Teachers Not to Teach

Warren Schools: Plenty of Desks, But Not Enough Cost-Cutting?

Warren Board Member: "MEA Will Eat Their Young"

Union Leader's Claim of School Kids Sitting on Floors Draws More Denials

What is the Future for Michigan's Public Employee Unions?

Michigan Public Employee Pay and Benefits Growing

Government Pay Outpaces Private Sector

MEA Has $174.5 Million in Liabilities, $66.3 Million in Dues

Nearly One Thousand Six-Figure Salaries at UAW and National Education Association

Employee Health Insurance Premium Co-Pays Still Rare at Public Schools

Michigan Public School Health Insurance Costs Soar Above National Trends

Public Employees Pay Least Toward Their Health Insurance

Districts Save With Health Savings Accounts

Snyder Talks Up 'Fixing Michigan' in Chelsea

Moss Message: Champagne Bubbles

Michigan Public Employees Compensation Growing Despite Concessions Claims

Why a Democrat Voted Against a State Employee Pay Hike

The People and the Political Class