If you worked for and retired from a school district in 1993 (as an example), you would have received a severance package upon retirement. The school district would say to the retiree, “Thank you for your service. Here is your $20,000 severance package. Happy Retirement.” This was problematic to both the retiree and the employer.
Enter “The Match”
School districts started negotiating a match for their employees in the late 1980’s/early 1990’s. This match ultimately became a “buy-down” of the former severance package. When the match benefit was initially established in the district, the benefit was based on an employee’s hire date.
Education and illustrative purposes only. Severance package amounts vary by employer and bargaining group. This material is not intended as ERISA, tax, legal or investment advice. If you are seeking such advice specific to your needs, such advice services must be obtained on your own, separate from this educational material. This is written, speaking to public school employees in the State of MN 1-963518