Philadelphia School District offers early-retirement incentive program

Faced with a $629 million shortfall, the Philadelphia School District on Friday announced an early-retirement incentive program to try to reduce the number of layoffs.

The district is offering employees 18 months of paid health coverage under their current insurance plans, including medical, dental, vision, and prescription services.

The package is open to employees of any age who will have at least 35 years of service July 1; employees 60 or older with 30 years of service; and employees 62 or older with one year of service.

Jerry T. Jordan, president of the Philadelphia Federation of Teachers, said the incentive program "will give eligible employees an opportunity to retire in June and receive 18 months of paid medical benefits and, we hope, will reduce the impact of budget cuts on education programs and jobs."

Shana Kemp, a School District spokeswoman, said the program was open to all employees in schools and administrative offices currently covered by district health insurance.

Officials estimate that 2,500 employees are eligible. Employees have until 4 p..m. May 31 to sign up.

The plan does not have a savings target, Kemp said, but "will help us save the jobs of some less senior staff with lower salaries, helping us to do the least amount of harm to the workforce."

The district's cost-cutting strategy includes halving the central office staff by eliminating 413 positions; reopening contract negotiations with unions; and reducing funding for art, music, and gifted education.