Despite Palo Alto’s Pension Liabilities Increasing, Prefunding with PARS Aiming to Pay Off 90% in 15 YearsCategories: California Developments,PARS News,Pension Rate Stabilization
The city of Palo Alto’s unfunded pension liability has increased by 4.7% to $476 million. However, that doesn’t reflect the city’s effort to hedge against the liability by putting money into a side trust for pensions. Formally known as a PARS Section 115 Trust Fund, it aims to pay off 90% the city’s unfunded pension liability in 15 years.read more...
As a result of the COVID-19 pandemic, school districts throughout Connecticut face the paradox of decreasing budgets, due to state and local revenues losses, and increasing costs, due to safety mitigation in transportation, sanitization, temperature checks, personal protective equipment, and technology. With mounting pressure, many school districts are being asked to evaluate layoffs, furloughs, or other austerity measures to create savings. Another option that Superintendents should consider are district-controlled voluntary separation incentives.read more...
PARS has a long-standing successful track record of implementing over 1,000 Voluntary Separation Incentives to more than 350 school districts, community colleges, and educational agencies nationwide. These incentives have helped districts reduce labor costs, restructure their workforce, and avoid/reduce the need for layoffs.read more...
A well-crafted early retirement or separation incentive can be a win-win approach for management and employees/labor to achieve fiscal savings, avoid layoffs, and restructure departments or positions. The key to constructing a successful incentive is considering when and how it should be implemented. Below are crucial points to examine:read more...
The start of the year brings with it new goals, new ideas, and new CAFR reports. With updated CAFR results now published, local governments can make decisions on how to use potential surplus and/or reserve funds in planning for the next fiscal year. One highly recommended use of additional money is to set aside funds in a trust to prefund long term liabilities such as pension (Pension Rate Stabilization Program - PRSP) and retiree healthcare (OPEB).read more...