Early Retirement Incentive
By now, you should have received information from HR regarding the details of the Early Retirement Incentive program. The major details are as follows:
The payment is 65% of one year of your base salary with options on how long the payment is made (monthly over 5 years is standard). For example, if your salary is $100,000, you would be paid $65,000 split over 5 years, or just over $1,000 a month.
Employee must be a Certificated Non-Management employee of Modesto City Schools.
Employee must be at least 55 years of age with 5 consecutive years of service with the District by June 30, 2021.
Employee must resign from the District on or before June 30, 2021.
Employee must submit to the District Office a completed Early Retirement Enrollment Package, a Letter of Resignation and a Letter of Early Retirement Participation no later than January 22, 2021. The Letter of Resignation and Letter of Early Retirement Participation are considered irrevocable.
Employees who have already put in paperwork to retire prior to this notification and who otherwise meet the qualifications are included.
The benefit will be paid out starting in July.
What benefit awaits MTA members when they retire?
Currently, eligible retirees receive $400 per month to supplement their health care premiums until they reach age 65.
How do I Qualify?
Retiree must have 15 years (FTE) of full-time employment in Modesto City Schools, with at least the final three years as a member of the MTA bargaining unit.
Retiree must be at least 55 years old at the time of retirement.
Retiree must have District health coverage at the time of retirement.
*Note: Some other conditions may apply
The MTA Medical Benefits Trust was established as a non-profit corporation in 1986 with an initial payment from lottery funds to the Distirct and funded thereafter with an established annual amount paid quarterly to the Trust, as well as returns on its investment portfolio. The fund is managed by a hired Executive Director and controlled by a Board made up of elected and appointed members who are responsible for the operation of the fund and the management of its portfolio.
At this time, the trust Trust has around $725,000 net revenue annually for benefits. The current value of the Trust is $8.9 million.
Thinking about Retiring?
If so, we highly recommend you meet with a retirement counselor 3-5 years prior to your anticipated retirement date to determine your unique set of retirement benefits.
State Teachers' Retirement System (STRS) has changed its sites for counselor appointments. To consult/schedule individual and group appointments with CTA members call 1-800-228-5453, ext. 3 with a CalSTRS representative.
CTA Office: 3900 Mitchell Road, Ceres, CA 95307
Local Retirement Resource
Since 1952 retired Stanislaus County educators have joined together to enhance and protect the benefits of retired educators.
Division 38 now has over 900 members, encompassing all of Stanislaus County, which is located in the heart of the Central Valley.
MCS Insurance Contact
Telephone - (209) 574-1520