MEMORANDUM OF UNDERSTANDING
GRANDFATHERED EMPLOYEE - SEVERANCE BONUS & ERO
Cairo Unit School District No. 1
Cairo Association of Teachers, IEA / NEA
This Memorandum of Understanding is between the Cairo Unit School District No. 1 (“the District”) and the Cairo Association of Teachers, IEA / NEA (“the Association”).
WHEREAS, the Association is the exclusive bargaining representative of all regularly employed full and part-time certified personnel in the District; and
WHEREAS, a Collective Bargaining Agreement (the “Agreement”) exists between the District and the Association, which was ratified in May 2009; and
WHEREAS, the District and Association have agreed in Section 4.24 of the Agreement that, to be eligible for the retirement payments contemplated under the Agreement the employee must be eligible for full retirement without Early Retirement Option (“ERO”) expense or other penalty to the District; and
WHEREAS, V. S., a certified employee in the District and member of the Association, submitted an irrevocable letter of retirement on ____[DATE]_________ which requires the District to pay an ERO penalty/contribution to the Illinois Teachers’ Retirement System (“TRS”) because Ms. S. is ineligible for full retirement; and
WHEREAS, the predecessor Agreement did not preclude an employee from retiring pursuant to an ERO while at the same time receiving Severance Pay pursuant to Section 4.23 of the Agreement; and
WHEREAS, Ms. V. S. submitted her irrevocable letter of retirement pursuant to the terms of the predecessor Agreement, prior to the ratification of the May 2009 Agreement; and
NOW, THEREFORE, in consideration of the foregoing, and in consideration of the mutual covenants and undertakings hereinafter set forth, the Parties agree as follows:
1. Severance Pay. The Parties agree that V. S. shall receive Severance Pay pursuant to Section 4.23 of the Agreement according to her years of service to the District, despite any ERO expense her early retirement may cause the District.
2. No Value as Precedent. This Memorandum of Understanding is made and entered into for the purposes of settling a specific issue regarding a single employee’s (V. S.) ability to receive Severance Pay pursuant to Section 4.23 of the Agreement despite being ineligible for full retirement and causing the District to incur ERO expense. The parties agree that any future matter, claim or grievance will be addressed on its own merits according the Agreement ratified in May 2009, without any particular reliance upon or consideration of the terms of this Memorandum of Understanding.
3. Entire Agreement; Modification and Amendment. This Memorandum of Understanding contains the entire understanding and agreement between the Parties on these issues, and supersedes all prior written or oral understandings between the parties or their representatives as to the matters addressed above. This Memorandum may be modified or amended only by an instrument in writing duly executed and signed by the parties hereto.