Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Labor SERP topic
No spam. Unsubscribe anytime.
Keenan presentation: Milpitas SERP enrollment projects multi‑year payroll savings
Summary
Keenan consultants reported 51 employees enrolled in Milpitas Unified’s supplemental early retirement program (one below their projection), estimating the plan will add roughly $6 million in program‑specific savings over five years and contribute to a larger $10–11 million payroll‑savings projection when combined with attrition.
Keenan, the district’s consultant on the supplemental employee retirement program (SERP), presented results of the enrollment and a five‑year savings analysis to the Milpitas Unified board.
Melissa King of Keenan said the plan targeted employees age 55 with at least five years of service; enrollment landed at 51 participants, one below projection. Keenan’s analysis separates "SERP‑specific savings" from natural attrition and projects the program will generate notable payroll savings over five years. "The program saving essentially, by offering this plan, you're increasing the savings over that 5 year period beyond natural attrition by that 6,000,000," the consultant summarized in the presentation.
Keenan showed the district could expect more than $1 million per year in program‑specific savings in early years; combined with natural attrition the five‑year total payroll savings projection reached roughly $10–11 million, with about $6 million attributable to the SERP itself. Keenan also described program costs and administration: the vendor’s handling fee was described as roughly 3.5% and Keenan will invoice the district for annuity‑purchase and administration services, which they estimated at about $23,400 per year for their work.
District staff outlined next steps: finalize participants’ final salaries at the end of the year for annuity purchase amounts, process invoices in June, and effectuate benefit payments beginning Aug. 1 for employees separating under the program. Board members asked whether savings assumed replacements would be hired at lower step/column salaries; Keenan and staff confirmed the analysis accounts for SERP payments and indicated some savings reflect replacing higher‑paid incumbents with less‑tenured hires over time.
The board did not take a separate vote on the SERP at this meeting; staff said the administrative steps and personnel reports will appear on the next personnel agenda after finalization.
