Having their cake and eating it too
Superintendents allowed to collect retirement pay while working elsewhere
February 18, 2007
By BRITT CARSON Staff Writer
Retirement doesn't mean slowing down for many school superintendents.
In fact, superintendents from many states, including Illinois, will retire but then head to another state where they can hold another superintendent post, earn a salary and still collect their retirement benefits.
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Stephen Daeschner speaks at the VanHoose Education Center in Kentucky. The Jefferson County (Ky.) School District superintendent will retire from his post this summer, but also will earn a $225,000 salary from Indian Prairie School District 204.
(Courtesy of The Louisville Courier-Journal)
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Drury
Illinois Teachers Retirement System
To qualify for retirement a member must be 62 years old with five years of service; age 60 with 10 years of service; age 55 with 20 years or service or age 55 with 35 years of service.
Early retirement also is an option and benefits depend on the age of the retiree, years of service and the amount of sick and or vacation time that is unused.
Source:
www.trs.illinois.gov An investigation by The Sun reveals the practice is fairly common among many superintendents who are either retiring in Illinois and seeking out jobs in other states or coming to Illinois with retirements from their home state.
The most recent example is in Indian Prairie School District 204, which announced Wednesday it will hire Stephen Daeschner as its next superintendent. Daeschner, 64, has been the superintendent in Jefferson County School District in Louisville, Ky., for the past 14 years. He will retire from his post this summer and collect a $225,000 salary from District 204.
According to the Kentucky Teachers Retirement Salary benefits estimator online, Daeschner could be receiving a $69,000 retirement in addition to his District 204 salary. That number could change depending on accumulated sick and vacation time.
"It didn't even factor into our decision making," said school board member Mark Metzger, of Daeschner's expected annual retirement.
Illinois system allows collection in private sector
Taking the retirement packages and then another job is not illegal and all those mentioned in this article are abiding by the rules in their respective retirement systems.
Eva Goltermann, public information officer for the Illinois Teachers Retirement System, said the Illinois system allows employees who retire to collect benefits as long as they are not working in public education in Illinois. Superintendents and teachers are free to go to another state, earn a salary and continue collecting their retirements.
"The rules say unless the member takes on a TRS-covered position, the benefit amount remains the same," Goltermann said. "If they go teach at a private school in Illinois, they could still continue to collect benefits from TRS since that is not a TRS covered-position."
The TRS covers teachers and administrators in Illinois.
If the retirees take another position in a public school in Illinois where they work more than 120 days or 600 hours per calendar year, their benefits are suspended, Goltermann said.
Alan Leis was a deputy superintendent in Fairfax County School District in Virginia. He took early retirement, collecting a partial retirement package in 2003 and became superintendent of Naperville School District 203, where he earned $170,000 to start.
Retired superintendents or teachers also can work in the private sector and still collect their retirements. Donald Weber, former superintendent in Naperville School District 203, retired in 2003 and now works for PMA Financial Group in Warrenville.
Other states have similar policies
Illinois and Kentucky are not the only states that allow the practice. Richard Drury is the superintendent of Muskego-Norway School District in Wisconsin. This summer he will retire from his position, collect a partial retirement and become the superintendent of Community Unit School District 200 in Wheaton/Warrenville.
Tom Scullen, a former District 204 superintendent who retired in 1995, took advantage of a 5-plus-5 program that allowed people to add five years onto either their age or service at retirement. Scullen retired and has been the superintendent of Appleton Area School District for the past 12 years. If Scullen, 68, retires in Wisconsin, he will collect both his Illinois and Wisconsin retirements.
Even though the 5-plus-5 program no longer exists, teacher and superintendents in Illinois can now boost their last year or two of salary 20 percent under the TRS requirements, thus increasing their retirement benefits.
Benefits can increase depending on age
Members of the Illinois Municipal Retirement Fund also can work in other states and collect their IMRF retirement. Employees also can transfer up to 10 years of service to the IMRF as long as the work is not at the state or federal level, according to Linda Horrell, IMRF communications manager.
In 2004, Gail McKinzie retired from her superintendent post in District 204 and took a job as superintendent of Polk County School District in Florida. She had nine years invested in the system and qualified for a 20 percent bump in pay the last year of her salary to boost her retirement.
Using the TRS formula, McKinzie could be receiving a retirement package of $31,000 annually in addition to her $201,000 salary in Florida.
Benefits can be increased depending on the age of the person, years of service and sick or vacation time that was saved up. Goltermann said anyone who is older than 62 with five years of contributions to TRS can collect a retirement, although it likely will be a partial amount due to the small number of years of service.
District 204 is signing Daeschner to a three-year contract next week and if he stays on an additional two years, he will be eligible to collect an Illinois retirement in addition to his Kentucky retirement.
Daeschner will replace Howie Crouse, who will retire this year at age 55 after 35 years in education, 26 of those in District 204. Crouse has not announced if he has any plans after his retirement.
Staff writers Tim Waldorf and Jennifer Golz contributed to this report.
Contact Britt Carson at bcarson@scn1.com or 630-416-5269.
Area superintendents at a glance
A look at area past, present and future superintendents and where they are now
Stephen Daeschner
Age: 64
Current position: Superintendent Jefferson County School District, Louisville, Ky.
Current salary: $201,074
Future position: Indian Prairie School District 204
District 204 salary: $225,000
Estimated retirement from Kentucky: $69,000
Richard Drury
Age: 58
Current position: Superintendent of Muskego-Norway School District, Muskego, Wis.
Current salary: $135,000
Future position: Superintendent of Community School District 200 in Wheaton/Warrenville.
District 200 salary: $200,000
Estimated retirement from Wisconsin: $5,300
Gail McKinzie
Age: 59
Current school district: Polk County School District, Bartow, Fla.
Current salary: $201,000
Previous position: Superintendent Indian Prairie School District 204
Previous salary in 204: $175,371
Estimated annual retirement from Illinois: $31,680
Tom Scullen
Age: 68
Current position: Superintendent of Appleton Area School District, Appleton, Wis.
Current salary: $147,087
Previous position: Superintendent of Indian Prairie School District 204
Previous salary in District 204: $113,820
Estimated annual retirement from Illinois: not available
**The retirements are all estimates using formulas on each state's retirement Web site.
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