Delay raises pay for outgoing U-46 superintendent

The retirement deal for outgoing Elgin Area School District U-46 Superintendent Connie Neale will allow her to reap the maximum benefit from her state pension by waiving a clause in her contract that would have allowed the board to fire her for excessive absence.

The clause, included in every version of her contract since she was hired in 2002, gave the school board the right to fire Neale if she missed 90 consecutive days of work due to mental or physical illness.

The retirement agreement, which the school board approved by split vote Monday, allows Neale to remain on the payroll until Feb. 25, using up more than 90 days of her accumulated sick time.

The agreement stipulates the board cannot invoke the termination provision in her contract.

School Board President Ken Kaczynski said allowing Neale to delay her retirement for more than half a year, while remaining on paid medical leave, is "consistent with how we allow other employees to manage the date of their retirement."

He added the timing of Neale's resignation won't cost the district extra money.

The district will pay Neale a prorated salary of at least $176,185.69 for the 2007-08 school year.

More Coverage Neale's moving expenses in her contract

The figure actually is higher because she will receive the same raise teachers negotiate for the 2007-08 school year, according to the terms of her contract.

The board's decision to allow Neale to remain on the payroll until February, however, won't affect the district's bottom line because Neale's contract would have allowed her to cash in unused sick days at her daily rate regardless.

It won't cost U-46 -- but it will cost Illinois taxpayers, by boosting how much they contribute to her state pension.

The state allows retirees to exchange up to 340 sick days for two years of credit toward their retirement.

To date, Neale has 448 accumulated sick days. If she retired when she actually stopped working in September, she would lose pension credits for 108 of those days.

Instead, by remaining on the payroll, the state will calculate her pension as if she worked two-thirds of this school year.

For her maneuvering, Neale will receive an extra $3,000 to $5,000 annually in state pension payments, depending on how long she lives.

If Neale lives to be 80, she will receive about $850,000 in pension payments for her five years of service in Illinois.

If the board had not pushed back her retirement date, Neale would receive about $775,000 over that period.

Kaczynski said the extra payments "would not affect taxpayers in any significant way."

On the other hand, Kaczynski noted, the hoops the district would have had to jump through to invoke the termination clause could have racked up more legal fees on top of the billable hours logged drawing up the retirement deal and coordinating with state employees to ensure the deal is legal.

Still, three board members -- Amy Kerber, Maria Bidelman and Dale Spencer --refused to approve the retirement deal because it waived the termination clause.

Kerber acknowledged Monday that Neale's February retirement wouldn't cost the district more money.

But, she added, "I cannot set aside my personal convictions or ignore the members of the public who do not want to see this board relinquish any legal rights and remedies that may exist in the superintendent's contract."