Plan Ahead For Possible Midyear Cuts with a PARS SRP AnalysisCategories: Early Retirement Incentives,Hot Sheets
School and community college districts are becoming more concerned about potential midyear budget cuts as state budget revenue triggers are looking more likely. Recent news bolsters the need for planning for a worst case scenario: July revenues lagged $539 million below forecast; the California unemployment rate rose to 12% in July and economic growth is sputtering with the stock market dropping.
During this unsteady financial climate, NOW is a practical time for PARS to analyze whether a carefully crafted and strategically used early retirement incentive will help your district prepare for further fiscal challenges down the road in FY 2011-12 and beyond. The PARS in-depth analysis model takes into consideration your objectives, demographics, and retiree replacement requirements. PARS analysis ensures that your district is not locked into implementing a retirement incentive that doesn’t save money or fit your workforce and operational needs.
Suzanne Speck, Director Management Consulting Services for School Services of California states, “Recent economic developments threaten California’s aggressive revenue estimates. With projected revenues unlikely to materialize, midyear cuts loom for California schools.”
A PARS retirement incentive program gives you these advantages:
- A no-cost, comprehensive analysis of your District’s projected fiscal savings/costs
- The opportunity for FY 2011-12 or FY 2012-13 budgetary savings
- A head start on recruiting and restructuring for FY 2012-13
- The ability to begin planning and preparing NOW for midyear cuts
- The ability to target specific employee groups or offer a plan to all employee groups (including classified employees) within a single retirement incentive plan
- Multiple benefit pay-out options (various life payment options, fixed-term or lump-sum options)
- Tax-deferral of benefits (not available with the state retirement system)
- Custom incentive plan design, communication and administration
- Funding flexibility and fixed control of costs
- Flexibility to retract the plan offer after the enrollment window closes if target acceptance rates or anticipated fiscal savings are not achieved
PARS – The Leaders in Early Retirement Incentive Plan Administration
Over the last 29 years, PARS has gained unparalleled experience in the implementation of retirement incentive plans. PARS has implemented more than 1,060 retirement plans for local government agencies.
PARS offers a no-cost, simple yet comprehensive analysis detailing the impact of offering an incentive program.
PARS provides the utmost in flexibility and will work with your District to customize a program that fits your individual needs when it comes to plan design, benefit level and funding.
PARS is the only provider of public sector retirement programs to offer in-house administration of all of its retirement plans. PARS take the burden of administration off your staff and provides exceptional customer service – from initial plan implementation to payment of the last benefit.
Call PARS now for a complimentary analysis.
We look forward to hearing from you!