§ 16-7-19.1 - Optional incentive plan.
SECTION 16-7-19.1
§ 16-7-19.1 Optional incentive plan.– (a) Any school committee may, as a result of a bargaining agreement with itsteacher employees, accept by resolution to the retirement board an incentiveplan to provide supplemental payments for teachers who are eligible for aservice retirement allowance at the time they retire, or who become eligiblefor a service retirement allowance subsequent to their retirement, as follows:As an incentive to retire, the school committee shall grant no later thanthirty (30) days following retirement a lump sum payment not to exceed onehundred fifty dollars ($150) for each year of service in that community, up toa maximum of thirty (30) years of service.
(b) Each teacher must notify the school committee by July 1of the year in which they intend to retire. The incentive payment shall be paidto the teacher no later than thirty (30) days following retirement or at thetime they become eligible for a service retirement allowance and no retirementcontribution shall be made from this payment.
(c) Incentive payments under the plan shall not be includedin the final salary of a teacher for the computation of the basic pension duefrom the retirement plan and the supplemental amount shall be computed as aseparate item based on the existing pension formula, including three (3) yearaverage, and the supplemental payment shall then be added to the teacher'sbasic pension amount.
(d) Supplemental payments under this section shall beapplied, in the case of an option, after the option annuity amount isdetermined, and shall be continued for the lifetime of the teacher only and notto a beneficiary.
(e) Supplemental payments under this section shall not beincluded in the original pension allowance subject to any cost of livingincrease provided by § 16-16-40.
(f) The total of all supplemental payments to retiredteachers under this section shall be reimbursed to the retirement board by theschool districts on a monthly basis. Whenever any amounts due are not paidwithin thirty (30) days from the date due, the board shall levy regularinterest on the payments from date due to date of payment.
(g) Any school committee may terminate the optional incentiveplan by resolution to the retirement board, provided that:
(1) No teacher who retires after the termination of the planshall be eligible for any incentive or supplemental payments.
(2) Any retired teacher who is receiving supplementalpayments prior to the termination of the plan shall continue to receivepayments for the remaining lifetime of the teacher, and the school districtshall continue to be liable for the reimbursement of the payments to theretirement board as provided in subsection (f) of this section.