Administration recommends that the Board pass and adopt Resolution No. 2021/17, Resolution of the Board of Education of Jurupa Unified School District Authorizing the District to enter into an agreement with Public Agency Retirement Services (PARS) to design and administer a Supplementary Retirement Plan (SRP) for eligible Certificated Non-Management and Certificated Management Employees provided there is sufficient employee participation.

BACKGROUND INFORMATION

The Jurupa Unified School District has worked with Public Agency Retirement Services (PARS) to design a Supplementary Retirement Plan (SRP), which is a retirement incentive that is designed to encourage senior Certificated Non-Management and Certificated Management employees at the top of the salary schedule to retire early.  The goal of the program is to generate savings to the District by increasing the number of retirements in the 2020-21 school year.

As the administrator of the Supplementary Retirement Plan (SRP), PARS will assist the District in the initial design, perform plan communication and enrollment, and conduct all ongoing administration of the program. PARS will provide education regarding the program to eligible employees and will be available for questions throughout the enrollment period. Pacific Life Insurance Company will serve as the plan insurer and will assume all investment and mortality risk of the program. Pacific Life is rated A+ (Superior) by A.M. Best.  The District has successfully utilized PARS for early retirement program services in the past as well.

CURRENT CONSIDERATIONS

The Supplementary Retirement Plan (SRP) would provide participating employees with a tax-qualified annuity based on the employee’s Final Pay.  This annuity is paid for by the District over a five-year period.  The program requires all employees to resign from District employment by the end of the 2020-21 school year.   Approximately 196 employees are eligible for the offer.

FINANCIAL IMPLICATIONS 

The ultimate savings or cost of the program will be determined based on the actual number of enrolled employees, resulting replacement employee costs, and the number of positions backfilled.  A final analysis based on the actual enrolled employees will be presented to the Board after the close of the enrollment window.  If the program is unable to demonstrate fiscal savings, the program may be rescinded.  The plan will only move forward if there is sufficient employee participation and demonstrated fiscal savings to the District.

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