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Education news and notes from Tampa Bay and Florida

Pasco School Board to consider early retirement options

3

August

For months now, the Pasco School Board has waited for actuaries to complete projections for how much money the district might save if it offered select employees an early retirement buyout.

Today the board gets its first glimpse at two proposals that could move the district toward its goal of cutting expenses up to $4 million. The discussion is planned for a workshop at the end of the board's meeting, which begins at 9:30 a.m.

Ordinarily, chairman Allen Altman said, he might be annoyed by the late arrival of the details. The board received specifics only late Monday. But time is of the essence, he said, because the professionals already have caused the district to be delayed in offering early retirement. The board had hoped to have these plans to employees in June.

"So I'm not bothered by this," Altman said.

One of the key issues now is making sure that any plan does not negatively impact the district's ability to meet class size rules, as classes begin in just two weeks, board member Frank Parker said. The board, administration and United School Employees Union would have to work out the details to make sure that doesn't happen. One key issue: The plan hinges on the USEP agreeing that all new hires would come in at step 5 on the salary schedule or less.

So what are the other details? Still a proposal only, they are: 

Plan #1 - For employees age 55 or over by July 1, 2010 with at least 20 years of Pasco service:  The Board would provide health insurance for participating employees until they are Medicare eligible. 

·      The enrollment window for this plan will be October 18 -20, 2010

·      Employees participating in this plan will be required to work through the end of the first semester, December 22, 2010.  Failure to do so will cause this retirement option to be voided.

·      The total cost of this plan is projected to be $16,617,420 (funded over 20 years)

·      The total savings of this plan is projected to be $9,442,240 annually (this savings will gradually reduce as salaries increase)

·      There are approximately 640 current employees eligible for this plan

·      Plan #2 will only be offered if sufficient savings are not realized by plan #1

 

Plan #2 - For employees who are eligible for the Board’s current early retirement plan: This plan will only be offered if sufficient savings is not realized by plan #1

·      The enrollment window for this plan will be November 1 – 3, 2010

·      Employees participating in this plan will be required to work through the end of the first semester, December 22, 2010.  Failure to do so will cause this retirement option to be voided.

o      For employees age 50 but less than age 55, the Board would make up the full FRS pension reduction – instead of 35% of the unreduced amount as in the existing early retirement plan as described above. This calculation would NOT include a COLA.

§       The total cost of this plan is projected to be $3,200,600 (funded over 20 years)

§       The projected annual savings of this plan is projected to be $1,165,526.50 annually (this savings will gradually reduce as salaries increase)

§       There are approximately 79 current employees eligible for this plan

o      For employees age 55 but less than age 62, the Board would make up the full FRS pension reduction including the COLA determined each year by the state – there is no COLA included in the existing early retirement plan as described above. 

§       The total cost of this plan is projected to be $17,435,680 (funded over 20 years)

§       The projected annual savings of this plan is projected to be $2,847,425.50 annually (this savings will gradually reduce as salaries increase)

There are approximately 193 current employees eligible for this plan 

[Last modified: Tuesday, August 3, 2010 9:44am]

    

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