Faculty Association - Capital Region BOCES

Retirement Incentive Payout:
Teachers:
Employee’s Current Salary minus 2011-2012 Step 3, column IV hiring rate divided by 2. If an
employee is less than 1.0 FTE the retirement incentive will be prorated accordingly.
Example: Employee A currently is a 1.0 FTE step 24, column IV earning $93,000. Current step 3,
column IV salary is $46,238. The incentive for this employee would be $23,381.
($93,000 - $46,238 = $45,762 / 2 = $23,381)
Teaching Assistants / Educational Assistants:
Employee’s Current Salary minus 2011-2012 Step 1 hiring rate divided by 2. If an employee is less
than 1.0 FTE the retirement incentive will be prorated accordingly.
Example: Employee A currently is a 1.0 FTE Step 15 earning $18.89 per hour working 6 hours per
day 185 days per year. Current Step 1 hourly rate is $11.94. The incentive for this employee
would be $3,857.25. $20,967.90 ($18.89 x 6 x 185) - $13,253.40 ($11.94 x 6 x 185) /2 =
$3,857.25.
Service Unit:
Employee’s Current Salary minus minimum hiring rate (2011-12) for grade of position divided by
2. If an employee is less than 1.0 FTE or 10 month vs. 12 month, the retirement incentive will be
prorated accordingly.
Example: Employee A currently is a 1.0 FTE Grade X earning $42,000. Current Grade X
minimum hiring rate is $34,175. The incentive for this employee would be $3,912.50. ($42,000 -
$34,175 = $7,825 / 2 = $3,912.50.
Employer Non-Elective Contribution to 403(b) Plan
Employer Non-Elective Contribution- Retirement Incentive The Employer agrees to make an
Employer Non-Elective Contribution to the 403(b) account of each covered employee entitled to a
retirement incentive in accordance with the Board of Education Resolution dated May 21, 2012
creating such incentive. Such contribution will be in an amount equal to and in place of the retirement
incentive outlined in said Memorandum of Agreement, subject to the maximum contribution permitted
under §415(c)(l) of the Internal Revenue Code of 1986, as amended, for the year in which the employee
severs employment.
No Cash Option No employee may receive cash in lieu of or as an alternative to any of the
Employer's Non-Elective Contribution(s) described herein.
Contribution Limitations in any applicable year, the maximum Employer Contribution shall not
cause an employee's 403(b) account to exceed the applicable contribution limit under §415(c)(1) of
the code, as adjusted for cost-of-living increases. For Employer Non-Elective contributions made
post-employment to former employees' 403 (b) account, the Contribution Limit shall be based on