TERI PLAN – Payout Information
Please be aware, if you do plan to retire under the TERI Plan in the middle of a school year, that this will affect your pay. You will receive two separate checks. Your SCRS deduction will continue to come out of your check. Your pay will have to be calculated based on actual number of days you have worked up through your retirement date. In order to understand this, look at how you are being paid now. Up until your retirement date, you have only been paid 1/12th of your annual salary each month, regardless of the number of days worked each month. In other words, you are not being paid as much as you have actually earned each month because we stretch out your pay to cover the summer months when you are not working. So, when you go on TERI in the middle of a school year, you have not been paid all of the salary that you have earned at that point. Your pre-TERI income has to be calculated and paid separately from post-TERI income. Therefore, the next month after your retirement month, you will receive a check that pays you the difference between what you have been paid so far and what you have actually earned prior to your TERI retirement date. This is your TERI payout check. You will also receive a second check for the difference between your TERI payout check and your normal monthly check. Your actual (earned) pre-retirement income can then be reported to the SCRS.
You will start over on a new contract as a retiree for the remainder of the school year. Your annual salary has not changed and you will still continue to receive a check every month.
Once you enter TERI, you will also receive a Leave Payout Worksheet in the mail that details your leave/vacation days that you will sign, date and return upon your review. You may only accumulate days up to the amount of your contract days. Then 90 days will be subtracted to apply toward retirement credit and 15 days will be left in your balance upon your request. The total number of days left will be paid out as follows:
Leave Days: 1-19 years with our district = $20 a day
20+ years with our district = $30 a day
No SCRS deduction
Vacation Days: Paid at daily rate (divide your annual salary by your number of contract days)
SCRS deduction is taken
Once payment has been made, although you will continue to accrue leave, you will not receive any additional payment for leave not used during participation in the TERI program.
If you wish to defer this payout into a qualified retirement plan please note this on your worksheet before returning. Your payout will be held until deferral paperwork is received by the Payroll Office. You will be responsible for notifying your plan representative to complete the deferral paperwork.
Tami Bishop, CEOE
Payroll AdministratorRevised 9/30/2005