[Congressional Record (Bound Edition), Volume 149 (2003), Part 8]
[Extensions of Remarks]
[Page 10400]
[From the U.S. Government Publishing Office, www.gpo.gov]




  PETRI-KIND TEACHER VOLUNTARY EARLY RETIREMENT INCENTIVE ACT OF 2003

                                 ______
                                 

                          HON. THOMAS E. PETRI

                              of wisconsin

                    in the house of representatives

                       Wednesday, April 30, 2003

  Mr. PETRI. Mr. Speaker, today with my colleague from Wisconsin, Ron 
Kind, I am introducing the Teacher Voluntary Early Retirement Incentive 
Act.
  It is a common practice across the country for school districts to 
provide senior employees an opportunity or incentive to voluntarily 
retire before the age at which they could receive Medicare coverage and 
full retirement benefits from a state or municipal retirement system. 
These early retirement incentive plans, ERIPs, are truly a win-win 
proposition for school districts and employees. School districts are 
able to lower overall payroll costs and pass the savings on to early 
retirees in the form of greater retirement options and supplemental 
benefits. In a profession where many experience ``burnout'' before full 
retirement age, ERIPs are a highly valued option among teachers, 
retirees, and school boards.
  Despite the popularity and mutual benefits of these plans, school 
districts in Wisconsin, Minnesota, and Iowa over the past several years 
have been threatened with age discrimination charges by the Equal 
Opportunity Employment Commission for their voluntary early retirement 
incentive plans, and many school districts in other states may be at 
risk for similar action. We do not believe that it was the intent of 
Congress that voluntary benefits, negotiated between unions and 
employers and offered to all employees who reach a certain age, should 
come under the definition of age discrimination. The Petri-Kind Teacher 
Voluntary Early Retirement Incentive Act of 2003 would clarify the 
Congress' intent by carving out an exemption in federal age 
discrimination law for voluntary early retirement plans offered to 
elementary and secondary school teachers, similar to the exemption that 
already exists for teachers in colleges and universities.
  This bill will go a long way in clearing up the legal uncertainty 
surrounding voluntary ERIPs, thus making available greater retirement 
options for teachers and giving school districts more flexibility in 
managing their workforce.

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