Baltimore city teacher buyout: Read the fine print
We've decided to post this as a public service announcement, because there still seems to be some confusion from the coverage of the city teacher buyout plan. Below is a FAQ sheet from the Baltimore Teachers Union that explains the key points of the Early Retirement Incentive Program.
I'd like to also offer my own FAQ: The buyout plan offers 75% of a teachers current salary DIVIDED over a 5-year-timespan. It is NOT 75 percent of a salary each year.
Here is an excerpt from one of our stories: "In an example of the package's breakdown, school officials said a teacher in the middle of the salary scale would earn about $60,000 a year. Seventy-five percent of that salary is $45,000; divided by five years, the package would pay out $750 a month."
Keep reading for the BTU breakdown:
The Baltimore Teachers Union
Retirement Buyout Option
Frequently Asked Questions
1.How do I know if I am eligible for the retirement buyout?
If you received a letter from City Schools, you are eligible; however this program is not mandatory, if you do not want to take the buyout, you do not have to. If you did not receive a letter and meet the requirements, please call the Benefits Office at 410‐396‐8885.
2. Where will my money go for the five years I’m getting the 75 percent?
You will receive 75 percent of your current year salary divided over a five year period, plus your pension. The money you get over the five years will be put into a 403B beginning September 1, 2011.
3. How will this affect my Social Security benefits?
This plan has nothing to do with your Social Security Benefits. When you turn 62 you will be able to collect Social Security from the Federal Government, however, if you are not already 62, you will no longer be paying into Social Security.
4.How are my health benefits affected by this?
Your health benefits will be the same benefits you would receive as a retired teacher.
5. Can I come back and work for Baltimore City Public Schools if I accept this buyout?
You may come back to the system as a substitute if you take this plan, however, you cannot come back in the City as a teacher.
6.Who does this buyout apply to?
This buyout only applies to teachers who want to take advantage of this program. If you received a letter from the school system, it means you are eligible for the program; however it is up to you if you choose to take the buyout. This is strictly optional.