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Board approves termination of PARS plans; eligible paraprofessionals to enter Social Security
Summary
The board approved parallel resolutions to terminate PARS target-benefit plans for paraprofessionals and to transition eligible new hires into Social Security, with the district to submit termination paperwork to the IRS and implement the transition starting Oct. 12.
The Board of Education voted on Aug. 23 to terminate two PARS (Public Agency Retirement System) target-benefit plans for paraprofessionals and to begin transitioning eligible employees into Social Security.
United Educators of San Francisco Executive Vice President Linda Plack urged approval, telling the board PARS did not provide many retirement protections and that Social Security would offer lifetime benefits and survivor and disability coverage. "With the PARS target benefit plan, when she uses up her contributions...there is absolutely nothing left," Plack said, describing a paraprofessional example the union provided.
District staff said the board had previously approved an MOU and that the current votes implement necessary steps to effect the transition. Staff counsel and plan administrators will file required termination documents with the IRS; the district plans for an Oct. 11 plan end and Oct. 12 start for Social Security coverage for eligible employees. Paraprofessionals age 55 and older in the target-benefit plan will have options (Social Security or set up a 403(b)). Board roll calls for both termination resolutions recorded 6 ayes each.
Board members asked about next steps for outreach to affected employees and labor partners. Staff said they will meet with unions and provide the necessary enrollment options and counseling to paraprofessionals, and reiterated the timeline for filing and operational change.
Next steps: staff to submit termination documents to the IRS, implement the MOU provisions, conduct employee outreach on choices for those age 55 and older, and coordinate with labor partners for enrollment and benefits counseling.
