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Meeting Date:
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11/4/2020 - 4:00 PM
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Category:
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Action Items
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Type:
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Action
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Subject:
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10.3 BUSINESS: Resolution No. 08:20-21 - Resolution of the Board of Trustees of the Perris Union High School District Establishing a Supplemental Employee Retirement Plan for 2020-21 and Approval of Addendum No. 1 to the Supplemental Employee Retirement Plan Service Agreement With Keenan & Associates
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Strategic Plan:
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Enclosure
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File Attachment:
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Summary:
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A Supplementary Employee Retirement Plan (SERP) is a program designed to create incentives that effectively and efficiently increase and accelerate the retirement rate, in excess of the natural attrition rate. This is accomplished by enhancing the retirement benefits of the participating employees. A SERP generates fiscal savings as a result of the salary differential of a retiring employee and a new-hire or by non-replacement of a retiring employee.
The Perris Union High School District offered a SERP in 2019-20 and determined it to be in the best fiscal interest of the District to extend this offering to 2020-21. To be eligible for the SERP, Certificated employees must be at least fifty-five (55) years of age and have completed at least five (5) years of service to the District by June 30, 2021. Classified employees, including Confidential employees must be at least fifty-five (55) years of age and have completed at least ten (10) years of service to the District by June 30, 2021. Eligible Certificated employees shall be offered a District contribution to fund the SERP equal to 70% of base salary. Eligible Classified employees shall be offered a District contribution to fund the SERP equal to 50% of base salary. Employees electing to participate in the SERP will be required to submit an irrevocable letter of resignation by December 18, 2020 with an effective no later than June 30, 2021. Participating employees with a resignation date on or before December 31, 2020 shall have a SERP plan effective date of January 1, 2021, receiving their first benefit payment on February 1, 2021. Participating employees with a resignation date on or before June 30, 2021 shall have a SERP plan effective date of July 1, 2021, receiving their first benefit payment on August 1, 2021. If the District determines that enrollment in the SERP does not provide a financial savings, the District may rescind the plan on or before December 28, 2020. If the District chooses to rescind the SERP, employees may revoke their letters of resignation on or before January 6, 2021.
Upon obtaining approval from the Board of Trustees, the District will send announcement letters detailing the plan options, schedules for orientation meetings and individual counseling sessions, and important timelines for the plan window.
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Funding:
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The savings generated from this item will be included in the 2020-21 budget and multi-year projections.
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Recommendation:
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It is recommended that the Board of Trustees adopt Resolution No. 08:20-21 - Resolution of the Board of Trustees of the Perris Union High School District Establishing a Supplemental Employee Retirement Plan for 2020-21 and approve Addendum No. 1 to the Supplemental Employee Retirement Plan Service Agreement with Keenan & Associates.
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Approvals:
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Recommended By:
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Signed By:
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Candace Reines - Deputy Superintendent
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Signed By:
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Grant Bennett - Superintendent
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Vote Results:
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| Original Motion | | Member Edward Garcia, Jr. Moved, Member Dr. Jose Luis Araux seconded to approve the Original motion 'It is recommended that the Board of Trustees adopt Resolution No. 08:20-21 - Resolution of the Board of Trustees of the Perris Union High School District Establishing a Supplemental Employee Retirement Plan for 2020-21 and approve Addendum No. 1 to the Supplemental Employee Retirement Plan Service Agreement with Keenan & Associates.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0. | | The motion Carried 5 - 0 | | | | | Dr. Randall Freeman | Yes | | Dr. Jose Luis Araux | Yes | | Edward Garcia, Jr. | Yes | | Anthony T. Stafford, Sr. | Yes | | David Nelissen | Yes | |
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