Early Retirement Plan

 

Purpose

To express conditions for eligibility and the administrative processes for requesting and receiving early retirement benefits from the College.

 

Statement

Bargaining Unit Employees

Early Retirement provisions for employees who are subject to collective bargaining agreements shall be governed by those agreements; failing such provisions, Administrative Rules shall apply.

Annually Renewable Management/Exempt and Confidential Employees

• Eligibility
  • Employees who are eligible to request an early retirement benefit include:
    1. Employees whose first day of employment is before January 1, 1995, and who have been with LBCC for a total of ten continuous years as employees and who wish to early retire prior to age 65, but not before age 55;
    2. Employees whose first day of employment is after January 1, 1995, but before July 1, 2000, and who have been with LBCC for a total of fifteen (15) continuous years as employees and who wish to early retire prior to age 65 but not before age 55;
    3. Employees who have completed 30 years in the Oregon PERS and whose first day of employment is before January 1, 1995, and who have been with LBCC for a total of ten continuous years as employees and who wish to early retire prior to age 65;
    4. Employees who have completed 30 years in the Oregon PERS and whose first day of employment is after January 1, 1995, but before July 1, 2000, and who have been with LBCC for a total of 15 continuous years as employees and who wish to early retire prior to age 65.
  • Employees, whose first day of employment is July 1, 2000 or after, are not eligible for an early retirement benefit.
• Benefit Parameters
  • This early retirement benefit is available to the qualified employee for five years or until age 65, whichever is less.
  • This benefit will consist of a monthly early retirement stipend equivalent to 1.25% of the employee’s highest 12 months of continuous salary within the 36 months immediately prior to the effective date of early retirement. The base salary does not include overtime, overloads, or any other additional pay accumulated during the employee’s final 36 months. All early retirement stipend payments will be made directly to an account designated by the early retiree through direct deposit.
  • In addition, for the early retiree only group medical, dental, and vision insurance coverage available to active, annually renewable employees will continue to be provided by the College, in the same group coverage they are currently participating in. The early retiree may not enroll in a higher level of medical, dental, and vision coverage than they were enrolled in at the time of early retirement. This coverage for the early retiree will be provided under the same terms and conditions provided to contracted employees through the College insurance plans.
  • At their own expense, the early retiree may continue to purchase existing dependent medical, dental, and/or vision coverage on the College insurance plans. The premium amount for their dependent’s participation will be deducted from the early retiree’s monthly stipend amount prior to their payment. Any additional premium cost not covered by the stipend must be paid by the early retiree directly to the College. Availability and cost of insurance are subject to change. Dependents will continue to participate in the medical, dental and vision plans along with the early retiree unless dropped by the employee at the time of early retirement, or during a later open enrollment period. Should the early retiree drop their dependent(s), they are not eligible for re-enrollment.
  • The stipend will end on the last day of the month the early retiree reaches 65 years of age or completes a maximum of five (5) years in the retirement program (60 months of payments), whichever occurs first. The group medical, dental, and vision insurance coverage will also end at this time, or may end sooner if the early retiree obtains medical, dental, or vision coverage through outside employment or becomes eligible for Medicare.
  • If the early retiree draws unemployment benefits, all early retirement benefits will cease and no further obligation by the district will exist. An employee may not receive benefits under this plan and any district-provided long-term disability plan simultaneously.
  • In the event of the early retiree’s death, the stipend will cease. If eligible dependents are currently participating in group medical, dental, and/or vision insurance coverage under the early retirement program, these coverage’s are continued for the dependents and will be paid by the college. Coverage will continue for the balance of the original early retirement contract or may terminate sooner should the dependents obtain medical, dental, or vision coverage through outside employment or qualify for Medicare.
• Application Process
  • College employees may apply for early retirement if they have the number of required years of continuous, contracted employee service to the college and are regularly employed with the college at the time of early retirement. College approved leaves shall not constitute a break in continuous years of service but will not be counted as time served.
  • College employees should apply for the early retirement plan a minimum of 90 days prior to their retirement date, and the plan will take effect on the first of the subsequent month. Requests for early retirement should be submitted in writing to the President for consideration. Early retirement benefits are not retroactive. The President reserves the right to make exceptions on a case-by-case basis.

 

 

---