PARS Solutions: Helping Community College Districts Maximize ResourcesCategories: California Developments,Hot Sheets
With 30 years of experience specializing in the design, installation and administration of retirement plans and trusts, Public Agency Retirement Services (PARS) provides California community college districts with a full-spectrum of retirement programs. Our comprehensive, service-oriented approach enables us to work hand-in-hand with each district during all phases of program operation – from initial design and implementation, through ongoing plan administration. The following solutions offered by PARS help community college districts to operate more efficiently and have been proven to achieve bottom line results.
Supplemental Retirement Plans (SRP)
Since 1984, PARS has helped community college districts create customized early retirement incentives to save dollars and reduce labor costs. Key benefits of the PARS SRP include:
- Eligible employees can be determined by salary, years of service, department, position, etc.
- Separating/retiring employees can be replaced by more recently-trained employees or positions can be eliminated altogether
- Districts can fund the plan for up to five years after separation of service
- Tax advantages benefit both the participant and college
- Fixed monthly payout options include Lifetime, Joint-and-Survivor, or 5 to 15 years
Prior to plan implementation, PARS will provide a no-cost, comprehensive analysis to evaluate the overall feasibility of an incentive. Our proprietary model can analyze optimum benefit levels, eligibility groups, and employee replacement scenarios etc., to help maximize savings and achieve the specific goals established by each college district.
Other Post Employment Benefits (OPEB) Trust
For over 10 years, PARS has offered a comprehensive, one-stop multiple-employer trust program that enables community college districts to prefund their Other Post-Employment Benefits (OPEB) liabilities. The flexibility of the program enables each district to retain local control, while still benefitting from investment, legal and economies of scale.
Key features of the plan include:
- Security and Protection from the largest OPEB trustee and 5th largest commercial bank in the nation, U.S. Bank
- IRS-approved irrevocable 115 OPEB Trust Structure
- Flexible investment options created specifically for OPEB prefunding
- Dedicated service team that includes both consultants and investment professionals
- No minimum contribution and no funding requirements
- Easy-to-adopt Master Trust and Plan Documents
Alternative to Social Security Retirement Plans (ARS)
PARS offers an Alternative to Social Security for part-time, seasonal and temporary workers which benefits employees and provides permanent payroll savings to community college districts. In lieu of contributing 12.4% after-tax to Social Security, the required contribution into the PARS plan is only 7.5% and made with pre-tax dollars. With Social Security, the contribution is split equally between employer and employee, whereas with the PARS ARS Plan, each district determines the employee-employer
Features of PARS’ Alternative to Social Security Program include:
- Diverse range of investment options tailored to ARS participants
- Immediate vesting of benefits
- Opt-out option for eligible participants who want to remain in Social Security
- Low fees that have no agent commissions, front-end or back-end loads, or profit sharing arrangements