Victoria College in Texas Reduces Budget with PARS Separation Incentive PlanCategories: Early Retirement Incentives,Hot Sheets,Texas Developments
Victoria College was looking for a way to reduce its budget and restructure staffing in a positive way. While looking for solutions, the College learned about the PARS Tax Deferred Separation Incentive Plan (SIP).
Beginning with a no-cost, comprehensive analysis detailing the impact of offering an exit incentive, PARS and the College discussed several possible plan designs. A final structure was soon agreed upon and Victoria College officially opened the PARS SIP to eligible employees. The offer included a 75% payout to faculty and professionals with 15 years of service and a minimum salary of $50,000.
After the enrollment window closed, the College determined that based on those who did sign up, they were able to eliminate two positions not previously anticipated. This pushed the overall plan savings to more than $500,000 over five years – significantly more than original savings estimates had projected. Because of the PARS SIP, the College hit their goal of reducing budget while also amicably restructuring staffing needs.
Success Repeats Itself
Victoria College’s success is similar to that enjoyed by Alvin Community College – another recent PARS SIP participant. Wanting a creative way to restructure its departments and reduce overall budget, ACC offered a PARS Separation Incentive Plan to over 100 qualifying employees. In the end, over a quarter of those offered took the plan, and ACC was left with a $2.8 million surplus. This surplus allowed the College to create 11 new positions in understaffed departments, and still end up with over $500,000 in added cash flow over the next five years. Being able to meet the savings needs of the College AND with a positive approach was met with great enthusiasm from those involved.
Helping You Balance Your Budget & More!
The PARS Separation Incentive Plan is designed exclusively for the unique needs of colleges and school districts. This customizable plan can help you:
- Accelerate the separation rate beyond natural attrition
- Reorganize departments and programs
- Revitalize your workforce
Since 1984, PARS has helped public agencies create customized exit incentives to save dollars and reduce labor costs. With current assets over $1 billion, PARS has helped over 790 public agencies save millions with flexible, cost-effective tax deferred plans.
To request a complimentary analysis for your College, contact Dion Papafote at (512) 415-6874 or firstname.lastname@example.org.