Solano County Reduces Budget Deficit with a PARS Early Retirement Incentive

Categories: Early Retirement Incentives,Hot Sheets
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Solano County has made many efforts to reduce its budget deficit since 2009-2010, including offering two previous early retirement incentives, eliminating 302 vacant positions and laying off an additional 207 employees.  But the budget deficit persisted.

The County reviewed several other options to reduce its payroll costs, which constitutes up to 70% of a department’s budget. They reviewed early incentive offerings in other cities and counties before deciding that a PARS customized early retirement incentive (Supplementary Retirement Plan or “SRP”) was the best tool to achieve further reductions in the current County budget.

The adopting Agenda Submittal stated why the County selected the PARS program:  “The SRP does not contain restrictions of the previous offerings in that the County would not be restricted from filling a limited number of positions in classifications offered the SRP, and the County can choose not to offer the SRP in those departments where the SRP does not meet the fiscal and operational objectives of the County.”

Birgitta E. Corsello, County of Solano’s County Administrator continues, “Even though the County had offered two previous Retirement Incentives in the last two years, the County still needed to make substantial budget cuts.  The recent PARS program provided the flexibility that allowed the County to review its fiscal and operational objectives prior to approving the final implementation. This ensured that the County could meet its goal of 25% replacement and achieve desired budget savings. The recent PARS program provided us greater operational flexibility and avoided significant layoffs.”

The SRP Offer:

The program was offered to all employees of the County (both Miscellaneous and Safety employees) who were age 50 with 5 or more years of service with the County.  However, the County did identify certain specific positions that would be excluded from the offer.  If an employee enrolled in the plan (and their participation was deemed by the County to meet their fiscal and operational objectives) they would receive 6% of Final Pay (base pay plus longevity) which would be paid out under various monthly payment methods, ranging from 5 years to lifetime.

The SRP Results:

Out of 836 eligible employees, 91 County employees signed up and had their participation approved by the County.  This enrollment was more than the previous two offerings made by the County combined (only 80 enrollments over 2 years).  Staff recommended that no more than 25% of the positions made vacant by the SRP offer be filled.  The SRP resulted in the following retirements and savings:

Eligible Employees

Enrolled & Approved Retirees

% of Eligible Employees

1st  Year Savings*

5th Year Cumulative Savings*






*1st Year and 5th Year Cumulative Savings are net of Natural Attrition Savings and all program costs.

How a PARS SRP Helps Your Agency

A PARS SRP can pro-actively help an agency restructure or resize departments to meet operating requirements for the long term.  Retiring senior employees allows an agency to strategize long-term to cover positions and retain more-skilled, newly-hired employees.

Why Choose PARS?

  • PARS offers a no-cost, simple yet comprehensive analysis detailing the impact of offering an incentive and has been doing so for 28 years.
  • PARS provides the utmost in flexibility and will work with your agency 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 takes the burden off your staff and provides exceptional service – from initial plan implementation to payment of last benefit.

Plan to minimize future budget challenges and contact PARS today!


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