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Board approves supplemental‑retirement offer to reduce layoffs
Summary
The Pajaro Valley board approved offering a supplemental employee retirement plan (SERP) intended to encourage resignations/retirements and reduce layoffs; Keenan Associates will run counseling and the district will return with a final cost analysis after enrollment.
The Pajaro Valley Unified School District board voted Jan. 14 to offer a supplemental employee retirement plan aimed at reducing the number of planned layoffs.
The plan, presented by consultants from Keenan Associates, would give eligible certificated and classified employees the option to retire or resign with a guaranteed annuity paid over a limited period or rolled into IRAs. Keenan described eligibility criteria (employees must be at least 55 by June 30, 2026, have five years of service and submit paperwork by March 13) and several payout options, including a five‑year lump option that consultants said is the most commonly chosen.
Keenan consultant Gail Bill told the board: “The supplemental employee retirement plan, we call it SERP because it’s easier to say,” and outlined how the district would run group orientations and individual counseling sessions for staff considering enrollment. Chief Business Officer Gerardo Castillo said staff and bargaining partners had been consulted and that the district had prepared an employee communication plan and FAQ QR code for staff questions.
Labor leaders at the meeting supported the approach. Ashley Yarrow Flowers of CSCA said the program, if timed and sequenced properly, “can significantly reduce layoffs” and urged the board to approve it. Brandon Denice of the teachers’ federation urged swift outreach to members so employees can make informed choices.
Keenan’s modeling showed a range of outcomes depending on participation and replacement decisions; one scenario projected net five‑year payroll savings of roughly $1.1 million, while a partial non‑replacement scenario increased projected net savings toward $12 million. Consultants emphasized the final fiscal impact depends on how many employees enroll and which positions the district chooses not to refill.
The board approved offering the SERP and directed staff to proceed with the outreach and counseling schedule; the district will return with a final cost analysis once enrollments are known. Keenan and district staff said enrolled employees could rescind resignations if the district later decided not to move forward.
Next steps: the district will distribute materials to all employees, host orientation sessions and one‑on‑one counseling, then present a final cost and staffing impact analysis when participation is confirmed.
