GASB 45 Plans
Pre-funding
post-retirement healthcare funding obligations is a relatively new
concept to public agency management - as well as governing boards and
employees. As healthcare costs continue to rise, with no relief on the
horizon, the best time to fund your post-employment retirement
healthcare obligations is now.
PARS
Retirement Enhancement Plan (REP)
Retirement Enhancement
Plans give agencies the ability to locally design and implement an
ongoing supplemental retirement plan to complement and enhance existing
state retirement plans. With a PARS REP plan, local agencies can
tailor a supplemental benefit to meet their very specific needs.
PARS
Alternate Retirement System (ARS)
PARS-ARS is an
alternative to Social Security for part-time, seasonal and temporary
employees (PST). PARS-ARS permanently reduces payroll costs with a total
contribution of 7.5% of covered payroll (compared to 12.4% under Social
Security). 250,000+ PST employees are covered by PARS ARS plans and ARS is
offered by more than 200 public agencies.
PARS Retirement and Separation Incentives (SRP and SIP)
The Supplementary
Retirement Plan (SRP) and Separation Incentive Plan (SIP) give an agency
the flexibility to create a supplemental retirement program to
facilitate downsizing, right-sizing, or handling a difficult employee in
a constructive way. Employees have the option to receive benefits over
their lifetime or a fixed number of years, as lump sum cash, or as a
direct rollover to an Individual Retirement Account (IRA). These plans
can be offered to all or some employees during a pre-determined “window”
enrollment period or through an “on-the-shelf” plan to be used as the
need arises.
PARS Matching Plans (MAT)
Similar to profit-sharing
plans commonly used in the private sector, matching plans allow public
agencies to leverage their budget dollars to attract and retain
employees. A matching plan can reward employees while encouraging them
to achieve agency goals. For example, some agencies reward good
attendance by allowing employees to contribute to a matching plan and
then matching those contributions by a given percentage up to a specific
limit when the employee achieves perfect or excellent attendance during
a fiscal year. Flexible plan features let the agency design the plan
that perfectly fits employee and agency needs.
PARS Consulting
PARS specializes in
public pension plan design, implementation and administration. As one of
the largest providers of public retirement plans in the country, our
experience and dedication to the public sector are evident in the plans
we offer. We can also independently and cost-effectively review
retirement programs and options that you are considering for your public
agency.
