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Board approves supplemental retirement plan after PARS reports 27 signups
Summary
Trustees approved a supplemental retirement plan to enact a PARS early‑retirement incentive accepted by 27 employees; staff said the upfront cost is about $1.8 million and long‑term savings depend on how many positions are refilled.
The Redondo Beach Unified School District Board of Education on Feb. 10 approved a supplemental retirement plan to implement an early‑retirement incentive offered to certificated and classified employees.
Dennis Yoo, executive vice president with PARS, told trustees the program produced 27 retirements — 13 from the certificated RBTA group and 14 from the CSEA classified group — with an average retiree age of about 62 and roughly 25 years of service. "The plan achieved a total of 27 retirements," Yoo said during his presentation.
Yoo presented replacement scenarios showing potential payroll savings when higher‑paid retirees are replaced by lower‑paid hires. Under a conservative assumption in which all positions are refilled, PARS projected roughly $417,000 in net savings for one employee group over five years and, when combining both groups, "a net savings of over $200,000 over that 5‑year period," he said. The presenter cautioned that savings depend heavily on the district’s decisions about backfilling positions.
Trustees pressed staff on whether the package could be split by employee group and on the salary figures used for replacement estimates. Yoo said average replacement hires were modeled at about $75,000, compared with average retiring salaries in the six‑figure range, creating the projected salary differential that drives savings.
Board members also discussed program cadence and incentives: PARS recommended treating such incentives as occasional tools rather than routine offerings, noting prior programs about every five years. Trustees noted the program’s purpose was to avoid layoffs and support staff morale even though the district bears an upfront cost. Superintendent Dr. Nicole Wesley and other staff said the plan’s purpose is to provide an additional benefit for long‑term employees while giving the district flexibility in staffing decisions.
The board voted to approve the supplemental retirement plan by voice vote; the student advisory vote was recorded as "Aye." The motion implements benefits for the 27 employees who opted in; specific implementation steps and whether particular vacancies will be rehired were left to staffing processes and later budget determinations.
What’s next: Staff will implement the retirement payouts under the PARS plan and return to staffing meetings in March–May to determine which positions, if any, will be refilled.
