Cities of American Canyon, Imperial Beach and San Gabriel Move their Part-Time Employees to PARS – The #1 Provider in CaliforniaCategories: Hot Sheets
The Cities of American Canyon, Imperial Beach and San Gabriel recently moved their part-time, seasonal and temporary employees (PSTs) out of Social Security into the PARS Alternate Retirement System (ARS). Each summarized why they chose PARS:
- Marcella Marlowe, Assistant City Manager at the City of San Gabriel, said “One of the main reasons we selected PARS is their dedication to providing a valuable benefit to our part-timers. We are confident that PARS will provide this important benefit while educating our staff and providing accessibility to customer service representatives for our employees.”
- Tom Clark, Public Safety Director/Fire Chief for the City of Imperial Beach, states “The City has taken an additional step to improve part-time employees’ retirement benefits by moving them from Social Security to a PARS alternative plan. Adoption of the PARS ARS will not only save money for part-time employees, but will result in yearly employer savings as well.”
- Bronda Silva, Director of Human Resources at the City of American Canyon, commented: “PARS ensures that all our part-time employees have an orientation and are enrolled in the program as well as providing training to our payroll staff to guarantee that it is implemented properly. With PARS, we feel secure that they are monitoring this plan to ensure it is in compliance and that our employees’ funds will be available to them when needed.”
BENEFITS TO EMPLOYERS
- The PARS ARS plan reduces ongoing payroll costs by requiring a smaller contribution (7.5% minimum versus 12.4% with Social Security).
- PARS provides at least a 79% cost savings over Social Security when reducing employer contributions from 6.2% to 1.3% or lower.
BENEFITS TO PARTICIPANTS
- Participants are 100% vested from the first day of enrollment whereas Social Security requires 40 credits (10 years) to vest.
- Part-time employee contributions are pre-tax meaning more take-home pay.
- Benefits are portable. When a part-time worker leaves employment, their money goes with them, either as a lump sum payment or rollover to an IRA or another qualified retirement plan. Their PARS account becomes part of their estate should they die before retiring.
PARS’ IRS-qualified plans and comprehensive administration allow public agencies to offer a retirement plan with minimal administrative or fiduciary burdens. Over 600 cities, counties, special districts, school and community college districts have teamed with PARS to custom design retirement solutions to meet their operational goals. Retirement solutions offered by PARS include:
- Early Retirement Incentives for achieving budget savings and right-sizing without layoffs
- OPEB Pre-funding Programs for reducing retiree medical liabilities
- Customized Supplemental DB or DC plans for 2nd tier requirements
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