$2000 Lumpsum Payment

In today’s paycheck (October 5, 2015), eligible teachers should have received the $2,000 lump sum as part of the supplemental agreement reached on April 22, 2015.  Eligible teachers are defined as “all active full time licensed teachers who have completed probation or began serving probation prior to July 1, 2013.”  Eligible half-time teachers shall receive $1,000 lump sum. We have had a number of inquiries from teachers regarding the $2000 lump sum and would like to provide the following FAQs:   Q1: How do I know if I got paid the lump sum?   A:  Check your October 5th pay stub, it should be a separate line item.  It will list your regular pay and then a second line of pay for your $2000.   Most teachers are on intercession and will not have access to their pay stub until they return to school or go by their school to pick up.   The alternate way to find out the net difference is to compare the direct deposit on September 20th vs was deposited on October 5th.      Q2: Do I have to pay taxes on the $2000 Lump Sum and does it count towards my retirement? A:This was addressed at the time we announced the negotiated settlement. Here are the two FAQs from last spring. 8Q: Does this lump sum payment of $2000 count towards my “high three” calculation for retirement and will it be taxed? 8A: The lump sum payment will be taxed, you can’t get away from paying taxes. Those hired after June 30, 2012 cannot use lump sum payments in the calculations for retirement. Therefore, if you were hired before July 1, 2012, then yes it will count.  More information can be found in this link on the State Employee Retirement Web site: http://ers.ehawaii.gov/wp-content/uploads/2012/07/Acts-152-153-Memo-to-Employers-07-02-12.pdf You can read the entire FAQ document from last spring here:  http://eepurl.com/bkWyOz      Q3: How much (net) can a teacher expect to actually receive for the lump sum? A: The net amount received for the lump sum is different for every person, we are unable to give a specific amount, as a variety of things impact an individual’s tax bracket including pre-tax deductions and state/federal withholdings.  Because you are receiving more money than usual, you will likely have more money withheld than usual.  Depending on your income and tax rate, you may actually get back some of the additional withheld money in the form of a tax refund when you file your taxes.   Q4: What about charter teachers? A: Charter teachers should have the same contractual language applied to them as DOE teachers which is defined as “all active full time licensed teachers who have completed probation or began serving probation prior to July 1, 2013.” It should be noted that the DOE and Charter School Commission recently informed HSTA that there was some confusion in implementing this provision for public charter school teachers.  Thus, some teachers may see a delay in the payment of the lump sum. If you have questions, contact your UniServ Director. Q5: What if I believe I should have received the $2000 lump sum and did not? A: The DOE has informed HSTA that it does not intend to pay the $2,000 lump sum to teachers on Leave Without Pay (LWOP) as of October 5, 2015 and to teachers that received a less than effective evaluation rating for SY 2014-15. We may not know DOE’s final decision until the October 5th pay date, which occurs during fall break. HSTA believes that all full time tenured teachers should be eligible for the $2,000 lump sum payment, regardless of leave status or performance evaluation rating. HSTA expects to file a class grievance on behalf of any teacher denied the payment. If you did not receive the $2,000 lump sum on your October 5, 2015 paycheck, and believe you were wrongfully denied the payment, you must inform HSTA no later than November 2, 2015.  Please go to this linkhttps://www.surveymonkey.com/r/HSTAlumpsum and complete a short questionnaire to help determine if a claim can be filed on your behalf. Upon completion of the form an HSTA staff person will follow up with you for next steps.