Superintendent warns PERS side account is exhausting, stretching district reserves
Summary
The district’s $10 million PERS side account — purchased years earlier to smooth employer costs — is running out sooner than expected, increasing projected PERS payments and complicating financial planning through 2027, Superintendent Susan Penrod said.
Superintendent Susan Penrod told the budget committee that Seaside purchased a bond-funded side account years earlier to offset PERS liabilities, but that account is scheduled to be depleted much earlier than planned.
Penrod said the district purchased a $10 million bond-funded side account that had saved roughly $4 million in employer costs but is now projected to run out in March or April of next year. "Seaside did that and purchased a $10 million bond...that was a good decision because it saved the district about $4 million," she said (Superintendent Susan Penrod, SEG 297–303). The early depletion means the district will see a step-up in PERS costs and needs longer-term planning to rebuild reserves and consider investment strategy, Penrod said.
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