CPS may pay $50M to entice older teachers to retire in June

Oct 17, 2016 by

The cash-strapped district says it’ll pay the bonuses for staffers retiring in June 2017 by December 2017.

Chicago Public Schools could spend about $50 million to entice its oldest, most expensive teachers to retire at the end of next year, the Chicago Sun-Times has found.

That’s if — and it’s still a big if — at least 1,500 teachers agree to accept a one-time bonus of $1,500 per year of service for an average 22 years on the job, as they’ve been offered in the agreement that barely fended off a strike by the Chicago Teachers Union. And that’s about three times the number of teachers who retired at the end of the last tumultuous school year, according to their pension fund.

Similarly, classroom aides can collect $750 per year if at least 600 of them who’ve worked for 10 years also decide to retire. That’s at least $4.5 million more.

The cash-strapped district, still depending on the state for $215 million of its current budget, says it’ll pay the bonuses for staffers retiring in June 2017 by December 2017.

That’s how the perks save money for the school system: The lump-sum payments of an average $33,000 per teacher come out of the 2017-18 budget, after the expensive teachers are gone.

Source: CPS may pay $50M to entice older teachers to retire in June | Chicago Sun-Times

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