Board hears update on voluntary separation (early-retirement) program; administration recommends maintaining 15 spots

Doctor Settles, who presented the update, told the board the administration is not proposing changes to the existing voluntary separation (early-retirement incentive) program but wanted to review eligibility, timeline and budgeting implications.

Settles said eligibility requires 15 years in the district and an age of 55–65 on Aug.31, 2026; applicants may not be administrators and must submit applications by Dec.1. Settles said staff typically notify employees about the opportunity in early October (45 days before the deadline) and meet individually with interested staff to review retirement implications. She emphasized that qualifying for the district incentive does not automatically mean eligibility for the Nebraska retirement system (MERS) and that staff counsel employees on both systems.

To limit budgetary impact and maintain staffing stability, the subcommittee recommends the district accept 15 voluntary-separation applications in a year. Settles said the district currently counts about 69 employees who would be eligible, and that allowing all to separate at once would create significant experience loss. If more than 15 applications arrive, the subcommittee will review the pool and recommend which additional applications, if any, the board should accept; criteria include years of service and fiscal considerations.

Settles also reviewed program mechanics: the incentive payment of $35,000 is deposited into a 403(b) account and — for those approved in this cycle — would be distributed around September 2026 (the beginning of the next school year). Settles said last year’s accepted group was filled and that retirees are allowed to substitute up to eight days per month under Nebraska law; she said many employees weigh projected health-insurance costs (the district covers a high portion of family premiums) when deciding when to retire. The presenter said average retiree age in recent years has been about 60 and that historically the district has accepted between eight and 12 applications per year (the cap of 15 has not been reached since 2019, when the board accepted one additional applicant).

Board members asked procedural questions about how the district would choose among applicants if more than 15 apply. Settles said the board packet and procedure list multiple criteria that could be used and that, in practice, the subcommittee seeks to preserve those who would lose eligibility after the year and those with the longest service. No action was requested or taken; the item was presented for information and future board consideration if subcommittee recommendations change.