Community Colleges: Prepare for Possible Mid-Year Triggers with an Early Retirement IncentiveCategories: Early Retirement Incentives,Hot Sheets
The bad news… If the November tax measure fails, community colleges will face a large trigger cut, plus further cash deferrals. Colleges may have to cut enrollment, lay off employees or reduce class offerings.
The good news… A PARS Early Retirement Incentive or Supplement Retirement Plan (SRP) can help your district soften the impact of budget cuts by accelerating the retirement or resignation of higher salary scale employees to lower labor costs in a more efficient and humane way.
Now is the time to have PARS run a no-cost, comprehensive analysis to determine the feasibility of offering an incentive this fiscal year. PARS can examine for you the following options:
- Enrollment window (45-60 days) opens September-November with retirement (or resignation) by December 31, 2012 for savings in FY ’12-13.
End-of-Academic Year SRP:
- Enrollment window opens in the Fall ’12 or Spring ’13 with retirement (or resignation) by June 30, 2013 for savings at the start of FY ’13-’14.
Depending on your district’s Faculty Obligation Number and the time of year, your district may be able to save by replacing retired employees with adjunct faculty from six months to a year or longer. If non-replacement of positions occurs for a period of time, then savings can be even greater.
PARS – California’s SRP Leader
Public agencies in the state turn to PARS in these difficult times because we are California’s true early retirement specialist, designing and implementing more incentive programs than any other provider.
PARS has implemented some of the biggest and most complex programs in the state, including Los Angeles Unified School District. PARS has also implemented early retirement plans for a number of community colleges, including: Cerritos CCD, San Luis Obispo County CCD, Glendale CCD, Pasadena Area CCD, Napa Valley CCD, Solano CCD, South Orange County CCD, Riverside CCD, MiraCosta CCD, Grossmont-Cuyamaca CCD, Compton CCD and 10 others.
For nearly 30 years, PARS has gained unparalleled experience in the implementation of retirement incentive plans. PARS has implemented more than 1,100 retirement plans for government agencies.
Fits your individual needs when it comes to plan design, benefit level, replacement scenarios and funding
- Conservative, proprietary empirical analysis model that has stood the test of many CBO’s and college Ph.D’s
- 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 to maximize value to employees
- Funding flexibility and control of costs
- Fee-for-service approach in which no revenues are derived from investments for greater transparency
- Flexibility to retract the plan offer after the enrollment window so you are not locked into implementing a program that does not save money or otherwise meet your objectives
- Takes the burden of administration off your staff and provides exceptional customer service – from initial plan implementation to payment of the last retirement benefit
Call us today for a free, in-depth analysis to determine whether a PARS Retirement Incentive will save dollars for your District.