FAYETTEVILLE — Some employees in the Fayetteville School District may be offered early retirement if the School Board decides on either of two early buyout options presented Thursday.

At least 228 employees are eligible to participate in the retirement program this school year or next, depending on the plan approved by the board, said Katy Rose, senior vice president of Educators Preferred Corp., a Michigan firm which has handles two previous buyouts for the School District.

The advantage to the district is higher-paid employees are replaced by less experienced employees who are paid less, resulting in savings of several million dollars over several years. About 85 percent of the district budget is spent on personnel.

Rose estimated the district could save as much as $9.4 million if what she described as a hybrid plan is adopted.

The School Board will act on a proposal in November after hearing details of the hybrid plan and a traditional plan.

The two previous buyouts were offered to certified personnel — teachers and administrators. The new plan will included classified, or support, personnel.

Employee must have 10 years of service to the district to participate, Rose said.

Under the traditional plan, the employee who decides to retired at the end of the current school year will receive $50,000 spread over five years in 60 monthly payments.

Under the hybrid plan, the employee has the option to retire in 2014 or 2015. If a certified employee opts to retire in 2015, he would receive a $5,000 salary increase in 2014 and another $5,000 increase in 2015 and would receive $20,000 in 60 monthly payments. The hybrid plan would raise the employee’s final salary upon leaving by $15,000, Rose said.

The same increases would be offered to classified employees but they would receive only $10,000 spread over 60 monthly payments, Rose said.

The hybrid plan offers an opportunity for an employee to grow their income.

Greg Mones, human resources director, said the district salary schedule goes to 30 years but salaries have been frozen on employees who have been in the district more than 16 years, as a cost saving measure.

“There are 114 teachers who have not been getting raises for a number of years,” Mones said. Those employees do receive bonuses when authorized by the School Board. The hybrid plan allows those employees to increase their salaries which in turn could improve the amount of benefit they receive from the Arkansas Teacher Retirement System.

The retirement systems looks at the three highest years of income when determining the pension amount, Mones said.