As a result of this unprecedented reduction in revenue, the District and the Faculty Association have been meeting to develop means by which to reduce District expenditures. As a result of these discussions, the District and the Association agree to provide an Early Retirement Incentive and an incentive for Limited-Retirement. The parties agree as follows:

A.            Early Retirement Incentive:

1.     If 15 to 24 full-time faculty members retire by July 1, 2003, each retiring full-time faculty member will receive a retirement incentive payment of $30,000. Faculty members who prior to the adoption of this Mou notified the District of their intent to retire as of the end of the 2002-03 academic year shall be included in the number of faculty as set forth above.

2.     If 25 or more full-time faculty members retire by July 1, 2003, each retiring full-time faculty member will receive a retirement incentive payment of $40,000 Faculty members who prior to the adoption of this mou notified the District of their intent to retire as of the end of the 2002-03 academic year shall be included in the number of faculty as set forth above.

3.     Full-time faculty members must advise the District by no later than July 1, 2003 of their intent to retire with an effective date of retirement on or before August 19, 2003.

4.     In order for this Early Retirement Incentive plan to be implemented, by no later than July 1, 2003 at least 15 full-time faculty members must have notified the District of their intent to retire. In the event that fewer than 15 full-time faculty so notify the District, this Early Retirement Incentive plan will not be implemented.

5.     Full-time faculty members who retire under this plan shall, for the 2003-04 academic year, be entitled to an assignment of 40% for the fall and spring semesters. The Department Chair or Faculty Leader may recommend an additional assignment for approval by the Vice President, Academic Affairs or Vice President, Student Affairs. This right of reemployment is subject to all applicable regulations/laws pertaining to STRS.

6.     The Early Retirement Incentive payment may be paid to the individual full-time faculty member in any manner that is appropriate and lawful. The Early Retirement Incentive payment is subject to all required taxes. Upon receipt by the District of an irrevocable retirement date, a faculty member may receive the incentive payment prior to his/her actual retirement provided the money is to be used for the purpose of purchasing additional service credit through STRS. The District will take reasonable steps to help participating faculty in setting up an IRS 457 account.

B.             Limited Retirement:

1.     If 10 or more full-time faculty request a reduced workload as provided for under Article 19 of the collective bargaining agreement (STRS Limited-Retirement Plan) at reduced work load of at least 50%, then each participating full-time faculty member shall receive an incentive payment of $10,000. Faculty members who prior to the adoption of this mou have turned in a request for a limited-term assignment for the 2003-04 academic year shall be counted towards the number of necessary faculty participation as set forth above.

2.     Full-time faculty members must advise the District by no later than July 1, 2003 of their intent to participate in the Limited Retirement plan to be effective for the 2003-04 academic year.

3.     In order for this Limited Retirement Incentive plan to be implemented, by no later than July 1, 2003, at least 10 full-time faculty members must have notified the District of their intent to participate. In the event that fewer than 10 full-time faculty so notify the District, this Limited Retirement Incentive plan will not be implemented.

4.     This Limited Retirement option shall be subject to all of provisions of Article 19, except section 19.1.8, and all laws/regulations pertaining to STRS.

5.     The incentive payment may be used by a participating full-time faculty member to pay the member's STRS contribution. The Limited Retirement Incentive payment may be paid to the individual full-time faculty member in any manner that is appropriate and legal. The Limited Retirement Incentive payment is subject to all required taxes.