Mar 6, 2024 - News

Des Moines schools considers early retirement plans

Illustration of three dollar symbols on a piece of lined paper with a pencil.

Illustration: Shoshana Gordon/Axios

Des Moines Public Schools is considering offering an early retirement plan to teachers who have been with the district for at least 20 years.

Why it matters: The district is undergoing major budget cuts as it suffers from a decline in student enrollment.

  • Labor is the district's highest cost.

State of play: DMPS would pay $50,000 plus $2,500 per year of service to teachers who are 55 and older and enrolled in the district's now-phased out pension plan.

  • This doesn't include teachers on IPERS, DMPS CFO Shashank Aurora shared with board members last night.

By the numbers: Out of 256 people who use the pension plan, 67 would be eligible to take early retirement.

The intrigue: DMPS was offering $50k to staff who were near retirement age to stay less than two years ago.

What's next: The early retirement plan is a part of the school board's FY25 budget planning process.

  • Teachers would not retire until June 2025.
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