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Phone: 412- 417-1748            Allegheny Intermediate Unit Education Association

    Tenure to Retire

Tenure

 

To gain tenure, an employee must serve three years in a school district or intermediate unit as a “temporary professional employee”, have a satisfactory rating during the last four months of the third year, and maintain appropriate certification.

 

When these requirements are met, the employee is defined as a “professional employee” and is entitled to a professional contract.  Make certain that your appointment is properly recorded in the school board minutes.  Keep a copy of the minutes in your permanent records.

Regular Retirement

¨ 35 years of service, retire at any age

¨ 30 years of service, retire at age 60

¨ Age 62, retire with 1 year or more  of service

 

Early Retirement

¨ After 25 years of service, and age 55, with a reduced penalty of 3% per year under 35 years with a 15% maximum penalty.

¨ After 10 years of service with a penalty

Sample Retirement Letter

123 Anywhere Dr.

Pittsburgh, PA 15137

March 2, 2008

 

 

 

Mr. William Addy

Director, Human Resources

Allegheny Intermediate Unit

475 East Waterfront Dr.

Homestead, PA 15120

 

Dear Mr. Addy,

 

Please be advised that this notification is my official letter of intent to retire at the end of the 2007-2008 school year. My last day of work with the Allegheny Intermediate Unit will be June 22, 2007. My retirement will be effective June 23, 2008.

 

This notice is contingent upon receiving the benefits listed under Section 87 of the current collective bargaining agreement.

 

Thank you for your cooperation in this matter.

 

                                                                                                   Respectfully yours,

 

                                                                                                   Your name

 

 

PSEA Retired

We would encourage all retired members to join PSEA-Retired.  This enables all retired school employees to maintain an active role within our organization.  Membership applications are available through our local UniServ office or by contacting PSEA headquarters at 800-944-7732.  PSEA-Retired offers a comprehensive Member Benefits package and has a legislative task force which monitors state and national bills of concern to retired school employees.

 

**Members should be aware that an organization called the Pennsylvania Association of School Retirees (PASR) is an independent organization which is not part of PSEA and is not affiliated with NEA.

 

Pennsylvania Public School Employees Retirement System (PSERS)

PSERS provides a defined-benefit plan, meaning that you know exactly how much of a monthly benefit you will receive after you retire and that amount is guaranteed.  This differs from a defined-contribution plan in which there are no guarantees and you must decide how to invest your money.  

As a member of PSERS, you have several options for a “normal” retirement.  If you have less than five years of service, you are entitled only to the money you have contributed.  With more than five years of credited service, you have three retirement options with no penalty.  With 35 years of service, you can retire at any age.  With 30 years of service, you can retire at age 60.  At age 62, you can retire with one or more years of service.  There are two options for early retirement.  You can retire after 10 years of service with a penalty and after 25 years of service and age 55 you can retire with a reduced penalty.

 

You are vested in the plan after five years of service.  If you leave after this time and have not reached normal retirement age, you may elect to receive an early retirement annuity or to leave the accumulated contributions in the fund and defer receipt of an annuity until a later date.

 

If you become physically or mentally incapable of continuing to perform duties for which you are employed after at least five years of credited service, you may apply to the Retirement Board for “disability” retirement with an allowance.  You will have to establish the disability through a medical examination and may have to be re-examined to establish that the disability is a continuing one.  If you are able to return to work, your disability allowance will cease and you will begin to accrue retirement credit.

 

The supplemental health insurance premium benefit of $100 per month with 24.5 years of service or 15 years at age 62 will be provided.  This benefit goes to the Allegheny Intermediate Unit, as per Section 87 of the contract, to be used for the cost of your insurance premium granted to you in the contract.

 

You may purchase credit in the retirement system for certain types of service.  These are military service, out-of-state service, former unaccredited service, approved leave of absence, county service, maternity leave prior to November 1, 1978, and part-time and other non-qualifying time of less than 80 days or fewer than 500 hours in a school year.

 

To estimate your “normal” retirement allowance, you should know two basic facts.  You need to know the total number of years of credited service at the time of retirement and the average of your three highest salary years.  You can multiply the average salary by .02 for T-C Status or by .025 for T-D Status to determine your annual retirement allowance.

 

You should consider attending pre-retirement seminars for information on PSERS option choices and financial planning.  Also, read your contract concerning other retirement information.

 

 

 

Retirement Information

September 2008

Dear Members:

 

If you are considering retirement at the end of this school year you need to begin to make some very important decisions concerning your future. The retirement process is complex and requires you to make an informed decision with the most current information available. Please be aware that some of these decisions are irrevocable and need to be based with respect to your individual circumstances.

 

The Association recommends that you begin the retirement procedure by contacting PSERS (Pennsylvania School Employee’s Retirement System) to obtain a retirement estimate form. The local number is 412.488.2031 and they are located on Sarah Street in the Southside. You will also need to schedule an exit interview with PSERS and complete a retirement application. The sooner you make an appointment and complete the application the sooner you will receive your first pension payment.

 

Section 87 of the current collective bargaining agreement states that to receive retirement health benefits you must notify the AIU’s Human Resource Department no later than March 30th of each year of your intent to retire at the end of the school year. Furthermore, PSEA recommends that you date your first day of retirement to be the day after your last day of work.

 

You will be faced with a major decision concerning the retirement option you select and what to do with your contributions. We strongly advise you to consult your financial advisor before making your irrevocable option selection. If you do not have a financial advisor we strongly urge you to secure one to assist you with this very important matter.

 

Sometime in March, Western Region PSEA will hold its annual retirement seminar usually at the Churchill Country Club. Shortly, every member aged 55 or older will receive notification of this event. Participation is first come, first served and limited to 300 participants. Again, we urge you to respond as soon as you receive the letter. If you are not able to attend this meeting, you can contact Southwest PSEA and try to register for their seminar. That number is 1.800.942.0415. This seminar is held at the Hilton at Southpointe on I 79 South. This seminar is enormously informative and it concentrates on the PSERS fund, retirement options, insurance, social security, and other relevant items.

 

Due to a recent grievance settlement, your spouse is covered for health benefits if the spouse is over age 65 and will be covered until the employee reaches 65 years of age.

 

         Read Your Contract

         This document will answer many of your questions.