Purpose of the committee:
A message from the Superintendent Chris King – PERA changes and BVSD Retirements and 110s
"Based on recommendations from the Superintendent’s Budget Advisory Committee, BVSD staff did a preliminary investigation of the potential cost savings associated with a “retirement incentive” and the continued viability of our 110 program beyond the 2010‐2011 school year.
Based on our preliminary findings, I have decided not to recommend any changes this year. I think that it is worth a larger and more complete study. I plan to convene a task force this summer, including the various stakeholders in the process, to study the issue and report their findings to me. I will make a formal recommendation to the board in the late fall so that any plan, if approved by the board, would be announced by January 1, 2011.
PERA has undergone many legislative changes, including a change requiring employees working a 110 to contribute 8 percent of their salary to PERA. The district will be contributing 14.75 percent of a 110 employee’s salary beginning in January 2011.
Many districts have either eliminated the 110 option or reduced salaries for employees on a 110 by the district PERA contribution. It is only prudent for us to study these benefits at the same time in order to make a more comprehensive proposal around the retirement issue. I do not see any scenario where an employee would be offered a “retirement incentive” and the 110 at the same time, even if the recommendation is to reduce the 110 salary.
It is important to note that funding for a one-year incentive program, if approved by the board, would likely be funded by one-time funds not yet identified. As the coming fiscal years are filled with funding uncertainty, we need to be very cautious with regards to spending reserves or one-time funds. Although we have not landed on a number, any retirement incentive, if approved, would only be a fraction of the cost to buy one year of PERA service credit because the potential attrition savings are not there to justify a larger incentive."
To view the committee members roster, please click here.
If you have questions or want to provide input, please contact Bob Jamieson at bob.jamieson@bvsd.org or 720-561-5188.