Equal Employment Opportunity Commission v. Hickman Mills Consolidated School District No. 1

99 F. Supp. 2d 1070, 2000 U.S. Dist. LEXIS 7704, 78 Empl. Prac. Dec. (CCH) 40,203, 83 Fair Empl. Prac. Cas. (BNA) 628
CourtDistrict Court, W.D. Missouri
DecidedMay 24, 2000
Docket98-1296-CV-W-3
StatusPublished
Cited by7 cases

This text of 99 F. Supp. 2d 1070 (Equal Employment Opportunity Commission v. Hickman Mills Consolidated School District No. 1) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equal Employment Opportunity Commission v. Hickman Mills Consolidated School District No. 1, 99 F. Supp. 2d 1070, 2000 U.S. Dist. LEXIS 7704, 78 Empl. Prac. Dec. (CCH) 40,203, 83 Fair Empl. Prac. Cas. (BNA) 628 (W.D. Mo. 2000).

Opinion

ORDER GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT, DENYING DEFENDANT’S DEFENDANT’S MOTION TO DISMISS OR IN THE ALTERNATIVE, MOTION FOR SUMMARY JUDGMENT

SMITH, District Judge.

Pending before the Court are several motions including Plaintiffs Motion for Summary Judgment (Doc. #34) and Defendant’s Motion to Dismiss or in the Alternative, Motion for Summary Judgment (Doc. # 36). The former motion is granted and the latter motion is denied.

1. Background

Hickman Mills Consolidated School District No. 1 (“Hickman Mills”) is located within the metropolitan area of Kansas City, Missouri. Hickman Mills employs teachers, administrators, and support personnel necessary for the operation of the school district. The teachers and administrators are identified as certificated employees and those on the support staff are known as classified employees.

A teacher’s salary is calculated based upon his or her educational level and years of educational experience. The salary schedule provides for monied step increases each year up to a maximum for each degree level possessed by the teachers and administrators. Once a teacher reaches the top step for their degree, he 1 progresses no further but does receive a yearly longevity pay increase. Most classified employees also progress through salary levels and attain the maximum salary after a period of years.

1. Plans dated July 1, 1989 to June 30, 1991

From July 1, 1989, until June 30, 1991, Hickman Mills maintained and administered an early retirement incentive plan (“ERIP”) covering certificated employees. *1073 The ERIP provided that any employee who was otherwise eligible would receive a lump sum benefit equal to 50% of that employee’s final base pay if that employee retired at age 55. The ERIP provided that the benefit would be decreased by 5% for every year the employee continued to work until age 65 at which time the employee would fail to receive any benefits upon retiring. A certificated employee was eligible to participate in the ERIP if he (1) was 55 years old and had 10 years service with Hickman Mills or (2),had 30 years of creditable service within the Public School Retirement System of Missouri (“PSRS”) which administered the pension plans covering public school employees.

During this same time period, Hickman Mills maintained and administered a similar ERIP covering classified employees. The ERIP provided that any classified employee who was otherwise eligible would receive a lump sum benefit equal to 25% of the employee’s base pay if that employee retired at age 60. This benefit decreased 5% every year until the employee turned 65. At age 65, the benefit would be reduced to zero. A classified employee was eligible to participate in the ERIP if he (1) was 60 years old and had 13 years service with Hickman Mills or (2) had 30 years of service with Hickman Mills.

Both the certificated and classified ER-IPs were published in the Policies of the Board of Education and continued each year unless terminated or modified by the school district. In each section of the 1989-1990 and 1990-1991 plan policies, the following language was provided: “[t]he early retirement incentive plan is designed to ... [p]rovide for a more balanced staff age blend.” (Ex. 2, 1989-1990 Policies, pp.2043, 2052; Ex. 3 1990-1991 Policies, pp. 2253, 2262).

2. July 1, 1992-June 1,1996 2

Effective July 1, 1992, the ERIP for certificated employees was revised. It provided that eligibility to participate in the ERIP required that an employee have completed 15 years of service with Hickman Mills and be eligible for full unreduced retirement with the PSRS. Once again, the language in the 1992 Policy declared that the ERIP was designed to “provide for a more balanced staff age blend” (Ex. 4 1992-1993 Policies, pp. 2478-81). These plans continued year after year until all were discontinued in 1996. The language “provide for a more balanced staff age blend” was incorporated into every plan for certificated employees. 3

During this period, a certificated employee was eligible for full, unreduced retirement with the PSRS if (1) he was 60 years old with at least 5 years of credited service with the PSRS; (2) he was age 55 with at least 25 years of credited service; or (3) he had 30 years of credited service. If eligible, a certificated employee would receive a benefit in the amount of 50% of his base salary if he retired when he was first eligible for full retirement with the PSRS. If he continued to work another year and retired in his second year of eligibility, the amount would be reduced to 40% of his base salary. Every additional year worked would reduce the benefit by 10%. If the employee continued to work for more than 5 years after he was first eligible to retire, he would not receive any benefit.

Similar revisions were made to the classified employees’ ERIP. During this period a classified employee was eligible for full, unreduced retirement if (1) he completed 15 years of service with Hickman Mills and (2) he met the requirement of eligibility for full retirement under the *1074 PSRS. A classified employee was eligible for full unreduced retirement under the PSRS if he was age sixty with at least five years of credited service or had thirty years of credited service. If eligible, a classified employee would receive an ERIP benefit in the amount of 25% of his base salary if he retired when he was first eligible for full retirement with the PSRS. If he continued to work another year and retired in his second year of eligibility, the amount would go down 20% of his base salary. Every additional year worked would reduce the benefit by 5%. If the employee continued to work for more than 5 years after he was first eligible to retire, he would receive nothing.

3. District Personnel 4

Several depositions of district administrators shed light on the district’s purpose in offering the ERIPs. Karen Swift, Director of Personnel from 1988 to June 1995 stated that she was responsible for the administration of personnel policies for Hickman Mills’ employees. Ms. Swift testified that the amount of compensation that an employee received under the 1989-1991 ERIPs was dependent upon the age of the employee. (Ex. 8, Swift Dep., 44:10-13). She also testified that the desire for “a more balanced age blend” was to insure that there were younger people in the district’s workforce as well as older individuals. (Ex. 8; Swift Dép., 41: B — 13; 42: 1-11, 3: 8-13). 5

John Dean was Associate Superintendent for Support Services from July 1, 1991 until December 1995. Dean was responsible for district finances and personnel matters regarding classified employees. Dean testified that the purpose of the ERIPs was to save the district money. (Ex. 1, Dean Dep., 39:11-40:4). However, only two studies were completed for certi-Seated ERIPs while a study for savings generated by the classified ERIPs was never completed. Neither completed study fully explained the amount of monies saved through the offering of ERIPs.

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99 F. Supp. 2d 1070, 2000 U.S. Dist. LEXIS 7704, 78 Empl. Prac. Dec. (CCH) 40,203, 83 Fair Empl. Prac. Cas. (BNA) 628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-hickman-mills-consolidated-mowd-2000.