City of Beverly Hills Turns to PARS in Difficult Budget Times

Categories: Early Retirement Incentives,Hot Sheets
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Facing a $2 million budget deficit, in late 2010 the City of Beverly Hills turned to a PARS early retirement incentive as an alternative to laying off valued employees. The PARS Supplementary Retirement Plan (SRP) approved by the City Council will save the City more than $500,000 in year 1 and more than $2.5 million at the end of year 5 after all costs are factored in.  The City designed a plan with the following features:

Benefit:  The City offered 7% of Final Pay paid monthly for the employee’s lifetime

(e.g. Final Pay $50,000 x 7% = $3,500/12 = $291.66 monthly)


  • Full-time Miscellaneous employee of the City
  • 50 years of age with at least 1 year of City service

Employees who met the plan eligibility criteria could receive the PARS benefit in lifetime or joint-and-survivor form or they could choose equivalent monthly fixed-term payments paid for 5 to 15 years. Options paid to employees for less than 10 years are eligible for direct rollover to an Individual Retirement Account (IRA), 457 plan or other plan that accepts rollovers.

PARS consultants met with employees to explain the plan in detail and answer their questions. PARS also distributed individual benefit illustrations and plan descriptions to eligible employees making the process of communicating and enrolling the employees into the plan very straightforward.

Scott Miller, Director of Administrative Services/CFO for the City of Beverly Hills comments, “We have been looking at various ways to reduce expenses without significantly hurting service levels.  PARS prepared a comprehensive analysis and was able to answer all the questions we had throughout the process. The PARS SRP is good news for our budget and for the employees who can retire early from the City in a more humane way than layoffs.”

Projected Savings:

The following are projected savings assuming that replacement of 40% of retirees under the program was needed to keep departments operating efficiently. Out of 160 eligible employees, 25 accepted the incentive offer for the following savings: 

Replacement Scenario

# of Positions Replaced

Projected Savings in Year 1

Projected Savings over 3 Years

Projected Savings over 5 Years







Why Did the City of Beverly Hills Choose PARS?

The PARS plan gave the City the ability to target job classifications.  By offering the PARS Early Retirement Incentive in this targeted fashion, the City is able to avoid larger job losses. The flexibility of the PARS plan allows the City of Beverly Hills to reach a savings goal in a very cost-efficient way.

PARS is one of the few companies with a sole focus on analysis, design and implementation of early retirement incentive plans for public agencies.  Since 1984, the PARS team has helped public agencies create customized early retirement incentives to save dollars and reduce labor costs.  More than 560 cities, counties, special districts and school and community college districts have turned to PARS for custom plan design to meet their operational and fiscal needs.

PARS’ Commitment to Public Agencies

We will help an agency determine:

  1. Whether or not an incentive is feasible based on an in-depth analysis using an agency’s employee census and other data
  2. If an incentive is feasible, through analysis, PARS will assist the agency with design features and benefit levels
  3. PARS will perform all necessary services, including fiscal analysis, employee communications, plan enrollments, legal documents and ongoing plan administration, to minimize the burden on your staff.


Contact PARS to consider a benefit solution to fit your agency.

We welcome the opportunity to provide a no-cost analysis based on your agency’s individual circumstances.


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