PARS Awarded Contract from Texas Assoc. of Community Colleges Purchasing Network Co-opCategories: Hot Sheets,Texas Developments
PARS is pleased to announce that we are a recommended awarded contractor of the Texas Association of Community Colleges (TACC) Purchasing Network Cooperative for the Tax Deferred Separation Incentive Plan and Alternative to Social Security for Adjunct, Part-time, Seasonal, and Temporary Employees.
Tax Deferred Separation Incentive Plan (Exit Incentive)
Since 1984, PARS has helped public agencies create customized exit incentives to save dollars and reduce labor costs. By offering exit incentives as tax deferred, benefits include:
- Eligible employees selected by salary, years of service, department, position, etc.
- Either separating employees are replaced by more recently-trained employees or the position is eliminated altogether.
- College can fund the plan for up to five years after separation of service.
- Tax advantages to both participant and college.
- Fixed monthly payout options include Lifetime, Joint-and-Survivor, or for 5 to 15 years. Payouts made over 5 to 9 years are eligible for a direct roll-over to a qualified account.
PARS will provide your college with a no-cost, comprehensive analysis detailing the fiscal impact of offering an exit incentive. PARS’ proprietary analysis model is used to evaluate the feasibility of offering an incentive, optimum benefits, eligible groups, employee replacement scenarios, and design features to maximize savings and achieve specific goals for each college. The analysis looks at data including age, service, past history of natural attrition, salary scales, future cost-of-living increases, new-hire pay rates, benefits, and other factors.
Alternative to Social Security (FICA Alternative Plan)
PARS offers an Alternative to Social Security for part-time employees in order to provide a valuable benefit for employees and provide permanent payroll savings to the College. In lieu of contributing 12.4% to Social Security (split equally at 6.2% for the employer and the employee), the contribution amount to the PARS plan is only 7.5% and is made with pre-tax dollars. The College determines the employee – employer split.
The PARS Alternative to Social Security features
- Diverse range of investment options
- Opportunity for eligible participants to opt-out of the plan and remain in Social Security
- Low fees–there are NO agent commissions, front-end or back-end loads, profit sharing arrangements, etc. to reduce interest paid to the participants.
Why Choose the TACC Purchasing Network Cooperative?
TACC serves as an advocate for Community Colleges in Texas. Vendors in the Cooperative are selected by the TACC Advisory Committee composed of seven college members – two chancellors/presidents, two business officials, and three purchasing officials.
- Contacts were awarded through a competitive bid process
- Cooperative ensures best pricing and quality of service
- Plans are available through an interlocal agreement so financially burdened colleges do not have to spend hard dollars going out to bid
Getting started is easy – contact Dion Papafote at 512.415.6874 and we will walk you through the simple steps for implementation of a cost-savings PARS plan.