Retiring benefits — District's action may trigger a teacher exodus

Steve Bickmore doesn't want to leave his job at Riverton High School, a place he always envisioned retiring from after 25 years as an English teacher.

Jordan School District's lower pay scale didn't even bother Bickmore, who relied on the assurance of some of the best post-retirement benefits among Utah's schools.

A recent change in those benefits, however, may force Bickmore to reconsider his plans and look elsewhere to finish out his career.

"Everybody is discouraged, and trust is not real high," Bickmore said. "I don't feel like we've been ethically treated. We certainly haven't been given all the facts."

Bickmore's emotion stems from a new retirement benefits plan adopted by the Jordan School Board to comply with new state accounting standards. The new rules — the Governmental Accounting Standards Board (GASB) — require school districts to assess how much they owe employees in promised benefits and make changes to ensure they can pay up when those employees retire.

For Jordan, the answer was no — the district's obligations far exceeded revenues.

"Sooner or later because of the costs of these post-retirement benefits, this issue would have to be addressed," Jordan Superintendent Barry Newbold said. "I certainly understand how employees feel when benefits are offered and then changed. That is unpleasant and disappointing."

Other districts like Provo and Murray have also had to revise their insurance benefits, and most districts will soon be addressing the same problem, Newbold added. For Jordan School District, the newly adopted plan was the only option that fit the district's budget, Newbold said.

The new plan replaces post-retirement insurance benefits that guaranteed teachers up to six years of paid insurance after leaving. Now, employees will receive cash payments in today's dollars in lieu of that coverage.

In addition, employees will get a 3.06 percent reduction in overall benefits for every year less than 25 taught in the district.

That switch prompted an outcry among teachers and the Jordan Education Association, who say the plan revokes a post-retirement insurance benefit many teachers had relied on.

"It creates a terrible morale problem. Teachers feel beleaguered, belittled and are not feeling like they're valued very much. That's a much bigger issue than the financial," JEA President Scott Berryessa said.

Berryessa, who sat on the task force that pitched three alternative retirement plans to the board, lobbied district leaders to change their minds after legislative funding came in higher than expected.