Monona Grove teachers receive the best post-retirement benefit package in Dane County, according to the Wisconsin Association of School Boards. Qualifying teachers may retire at 55 and receive district-covered health and dental insurance until age 70. They also receive a payout over three years based on their Social Security allowance.
Depending on projected health care costs, a 2009 retiree earning the maximum benefit would receive $281,000 to $421,000 in benefits, school boards association attorney Bob Butler said.
To retain those benefits over the years, the union has conceded short-term compensation increases, putting their salaries in the middle-to-bottom range compared with neighboring districts, Wollerman said. Gerlach said the healthy benefit package was put in place years ago to encourage retirements and attract new teachers.
The School District’s contentious proposal breaks teachers into three groups: those 10 years away from retirement, new hires and everyone in between. The first group wouldn’t be affected by the major changes. New teachers would receive $1,300 a year while employed toward a Health Reimbursement Account and no post-retirement payout. Teachers in the district that are more than 10 years from retirement would have their district health and dental benefits capped at retirement levels, lose coverage once eligible for Medicare and have their stipend capped at $50,000 total.