There has been much discussion as to how much the salary increase of Dr. Sandra Johnson, in conjunction with her decision to come out of retirement after over 10 years, is costing the District.
Our calculation places the added annual cost at $42,549.63!
If anyone in the know can explain why this is inaccurate, please let us know.
Cost to the Garvey School District General Fund.
New Salary $170,000
Previous Salary $148,516
Net Difference $21,484
Doctoral Stipend (She was not previously receiving this stipend.)
Payment to the State Teacher's Retirement System (STRS)
Since Dr Johnson decided to come out of retirement, the District must now pay 8.25% into the pension system on Dr. Johnson's behalf. No STRS payment was being made prior to the change in the contract. An equal payment was being made to an annuity instead. The School Board decided to continue the annuity despite the new payments to STRS. The annuity is considered creditable income and the District is paying 8.25% on it as well.
Dr. Johnson's total income for STRS includes $170,000 salary, $12,722.82 annuity, $5,100 Doctoral Stipend, $5,700 car allowance.
Total income - $193,522.82.
STRS Payment = $15,965.63 (8.25% of total income $193,522.82)
$21,484 (Salary increase) + $5,100 (Doctoral Stipend) + $15,965.63 (STRS Payment) = $42,549.63