Some board members call it an "incentive," while others insist it is a "reward." But under any name, the Warren County R-III School Board unanimously approved a two-year voluntary program that dangles three years of district-paid health and dental benefits to retirement-eligible teachers and other employees who elect to take retirement starting with the next two school years. The incentives will be offered to eligible certified and noncertified employees who agree by May 1 to retire prior to the 2010-2011 school year or those who notify the district by Feb. 1, 2011, to retire beginning with the 2011-2012 school year. Currently, retirees can stay on the district's medical and dental plans, but must pay out-of-pocket for their coverage. District officials say the offer is on the table only for the next two years as the school faces financial challenges as a result of the recession and reduced state funding. School leaders readily admit that the situation will be a gain for the district's finances as the district replaces experienced, higher-earning personnel with less experienced teachers and other employees at lower salaries. For retirement-eligible employees who have been with the school district for 25 or more years, the package includes three years of health and dental insurance - worth $18,000 over three years - provided they already participate in the insurance program prior to retirement. The district calculates that the average salary for teachers who qualify for retirement is around $58,000, and puts replacement salaries for less experienced employees at approximately $30,000, resulting in a savings of nearly $30,000 a year without consideration of the insurance payout for retiring personnel. "Even with payment of insurance for retiring employees, we still will experience significant savings," said Superintendent Dr. John Long, who said that the district would hire as replacements some new teachers who have just graduated, but that most of the hires would be personnel with at least three or four years of experience who are well on their way to earning a master's degree. Long said he expects the average experience level of new hires to be six or seven years and halfway through obtaining a master's degree. New board president Teresa Scott said she has mixed emotions about the program. "I don't have any issue with rewarding teachers through this program," Scott said. "My concern is taking experienced teachers out of the classrooms and losing this brain power. They also are mentors for new teachers." Outgoing board member Carmen Schulze who served on the committee studying the issue underscored the voluntary nature of the program. "This is a way we can reward teachers who want to retire in these next two years," she said. Long said he expects some interest in taking the package from the 15-20 employees who qualify, but also understands there will be eligible individuals who are not ready to retire now and who choose to stay on. He said the district will be happy to have these teachers and other employees continue. Board member Dale Schowe echoed that sentiment. "We welcome anyone who wishes to stay on," he said.