Santa Maria-Bonita School District Saves BIG With a PARS Early Retirement IncentiveCategories: Early Retirement Incentives,Hot Sheets
Santa Maria-Bonita School District first utilized the PARS Early Retirement Program (aka Supplementary Retirement Program or SRP) back in 1995, and has been conducting early retirement incentive plans on a periodic basis ever since. The District contacted PARS in early 2013, and requested a fiscal analysis be completed based on the demographics of their current employees. Based on PARS projections, the District would be able to save money while offering a benefit of 80% of Final Pay.
The incentive achieved high participation and savings over 30% of the eligible teacher population deciding to take the incentive at a savings of over $870,000 over the next five years!
According to Joanne Cameron, Former Assistant Superintendent of Human Resources, “PARS served Santa Maria Bonita School District employees well! Our retirees are extremely excited about their retirement incentive and extremely pleased with the prompt service provided by the PARS consultant. Thank you!!”
Certificated Non-Management: 122 eligible employees, 36 actual retirements
Certificated Management: 15 eligible employees, 5 actual retirements
TOTALS: 137 eligible employees, 41 actual retirements with PARS SRP
WHAT WERE THE SAVINGS?
Projected Savings in 1 year: $407,396
Projected Savings over 3 years: $828,025
Projected Savings over 5 years: $872,384
WHY ARE DISTRICTS DOING RETIREMENT INCENTIVES?
PARS saw high participation with many of our early retirement incentives this past year, primarily as a result of lingering budgetary issues from the Great Recession and changes in teaching due to the new “Common Core” curriculum standards fully implementing in the 2014-15 school year that teachers at the end of their career may want to avoid.
PARS will assist your district to determine whether an early retirement incentive is feasible based on an in-depth analysis of your unique financial needs. The specific benefits and design features will be based on that analysis. However, planning and analyzing should start soon to afford your district sufficient time to properly implement an incentive.
All of our plans include the following:
- A plan that meets the specific budgetary goals, needs and constraints of the district
- An introductory program presented to eligible employees in a clear, thorough, and thoughtful manner, with plenty of opportunity for individual questions, and without undue pressure to enroll
- A plan administered effectively by experienced professionals and with a well-coordinated administrative system developed over the last 30 years