School Board analyzes post-retirement program
By Tom Lappas, Citizen Editor 09/23/12
A program that pays retired Henrico school system employees a percentage of their final annual salaries in exchange for their part-time work within the system saves considerable money on substitute teacher expenses but could provide even more value to the system with several adjustments.
That was the conclusion of an in-depth analysis completed by county and school system finance officials, who presented their findings to the School Board Sept. 13.
At the beginning of the current fiscal year in July, the board increased the requirements of retirees who participate in the Post-Retirement Earnings Plan (PREP) program, mandating that they work at least 28 days during the school year in order to receive pay equal to 20 percent of their final annual paychecks. Eligible retirees may participate in the program for a maximum of seven years; 388 participate currently.
It was the third change made in the past three years by the board, which is seeking to squeeze more value from the 32-year-old program while reducing its annual cost. The PREP budget has dropped from its peak of $8.9 million in 2009 to $5.6 million during the current fiscal year. Prior to this year’s change, PREP participants received 22 percent of their final paycheck in exchange for working 24 days a year.
The program was created in 1980 as a way to provide a benefit to employees, encourage early retirement and save the school system money. During its budget process this spring, the School Board sought specific data to better determine the effectiveness and value of the program. But last week’s work session was proof that categorizing that value is a challenging exercise.
Though it’s relatively easy to determine the cost savings that results from using PREP retirees as substitute teachers – since there is a standard rate of pay for substitutes – it’s much more difficult to determine the value of administrative retirees who perform a variety of other responsibilities, Henrico Finance Director Gene Walter told the School Board.
Walter and his staff studied 507 PREP participants who entered the program during the past seven years and whose replacements were hired immediately upon their retirement. (The study didn’t include nearly 50 other participants whose former positions were eliminated, he said.)
Of those 507, 317 were retired teachers whose combined participation during those seven years saved the system $1.18 for each $1 it spent on the program, Walter said.
But Walter and his analysts could not determine a dollar-to-dollar estimate for the other 190 participants because their roles within the system were less defined and often entailed duties for which the system wouldn’t have hired temporary help.
School system officials recommended that the board consider a number of changes to the program that would make it easier to determine a clear value for each dollar spent in the program, including:
• assigning every participant to serve either as a substitute teacher (if qualified) or to fill another capacity with specific and direct calculable benefit to the system (such as SOL remediation);
• capping the maximum allowable salary to a participant at $90,000 annually;
• increasing the number of required years of Henrico service from 10 years to 15 years for eligible retirees and reducing the number of required years of service in the Virginia Retirement System from 16 to 15;
• requiring that interested participants notify the system of their intent by Dec. 1 annually and begin their participation the following July 1 (as opposed to the current system, which permits entry throughout the year – a minimum of 30 days after retirement – and makes budgeting for the program less predictable);
• grandfathering all current participants under the current standards until they have completed their seven years or dropped out of the program.
“We have determined that there’s a large responsibility on everyone’s part here to develop something that’s going to be very beneficial and cost-effective and also value-added to the school system,” Superintendent Pat Russo said during the work session. “That’s where we want to move this program.”
Current guidelines require that participants be at least 50 years old without having attained the age for full, unreduced Social Security benefits. The program initially was designed in part to serve as a bridge between retirement and Social Security, HCPS Finance Director Kevin Smith told the board. Using current standards, 854 current school system employees would be eligible to participate in the PREP program if they retired, HCPS Human Resources Executive Director Howard Banks said.
The board is expected to discuss the recommendations and the PREP program again at a meeting next month.
By Holly Speck and Hannah Matheson, Capital News Service 02/24/2017 General AssemblyGeneral Assembly 2017
Senior students at Glen Allen High School will get a personal touch when studying elections with their AP government teacher.
That teacher, Schuyler VanValkenburg, recently announced his intention to seek the Democratic nomination for the 72nd District seat in the House of Delegates. If he earns the nomination, he will run against Del. Jimmie Massie, R-Henrico, who has been unopposed for 10 years.
VanValkenburg, a 2004 University of Richmond alumnus who majored in history, is running for office for the first time. Although he has lived in Richmond since he began his undergraduate studies, aside from one year spent in Seattle, he said he never felt it was his time to run. > Read more.
School and business leaders from around the region, including (pictured, from left) Simon Hodges of Dominion Resources, Daphne Swanso(president of Junior Achievement of Central Virginia) and Henrico County Manager John Vithoulkas, gathered at Libbie Mill Library Feb. 23 for the Junior Achievement Finance Park construction kickoff. > Read more.
Finishing a day early, House and Senate negotiators agreed on a budget Wednesday that includes employee pay raises and more money for K-12 education and mental health.
The negotiators presented their budget to their fellow lawmakers in time for the required 48-hour review, which could be completed by Friday night with a chance to adjourn their 2017 session before Saturday’s target date.
Republican leaders in the House and Senate praised the spending plan’s conservative fiscal policies. > Read more.
A section of Charles City Road, from Lewis Road to South Airport Drive, will be closed beginning Sunday, Feb. 26 as part of a project to widen and improve the road.
The Henrico County Department of Public Works expects the closure to last for a few weeks.
Westbound traffic on Charles City will be detoured around the work zone by way of South Airport, Seven Hills Boulevard and Laburnum Avenue. > Read more.
By Rodrigo Arriaza and Maura Mazurowski, Capital News Service 02/24/2017 General AssemblyGeneral Assembly 2017
Officials with the American Civil Liberties Union called on Gov. Terry McAuliffe on Wednesday to veto Republican-backed legislation banning local governments in Virginia from designating themselves as sanctuaries for undocumented immigrants. They also said they plan to fight federal and state policies that they believe violate immigrants’ rights.
At a news conference, representatives of the ACLU of Virginia and other civil rights organizations criticized anti-immigrant measures passed by the General Assembly. They also condemned the recent spike in deportation raids on immigrant communities in Virginia by federal Immigration and Customs Enforcement, as well as President Donald Trump’s recent executive order banning immigrants from seven mostly Muslim countries. > Read more.
St. Joseph's Villa’s Flagler Housing & Homeless Services was one of three entities to earn the National Alliance to End Homelessness' Champion of Change Award. The awards were presented Nov. 17 during a ceremony at the Newseum in Washington, D.C.
NAEH annually recognizes proven programs and significant achievements in ending child and family homelessness.
Flagler completed its transition from an on-campus shelter to the community-based model of rapid rehousing in 2013, and it was one of the nation's first rapid re-housing service providers to be certified by NAEH. > Read more.
Richmond International Raceway's 13th annual Community Christmas tree lighting has been rescheduled from Dec. 6 to Monday, Dec. 12, at 6:30 p.m., due to inclement weather expected on the original date.
Entertainment Dec. 12 will be provided by the Laburnum Elementary School choir and the Henrico High School Mighty Marching Warriors band. Tree decorations crafted by students from Laburnum Elementary School and L. Douglas Wilder Middle School will be on display. Hot chocolate and cookies will be supplied by the Henrico High School football boosters. > Read more.
Given the warm weather lately, Saturday’s RVA Polar Plunge Winter Fest, benefiting Special Olympics Virginia, might actually be enjoyable! Other weekend events you’re sure to enjoy include the 14th annual Richmond Kids Expo at the Richmond Raceway Complex, the Richmond Symphony and The Taters in concert at The Cultural Arts Center at Glen Allen, and the Richmond Ballet Minds in Motion Team XXL performing at the Henrico Theatre. This is also the last weekend to check out HATTheatre’s production of “Bill W. and Dr. Bob.” For all our top picks this weekend, click here! > Read more.
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CalendarThe Weinstein Jewish Community Center will present the sixth annual ReelAbilities Film Festival March 16 and 18-19. The festival is dedicated to promoting awareness and appreciation of the lives, stories and artistic expressions of people with different abilities. The schedule includes: March 16 at 7:30 p.m. – “Shameless: The Art of Disability;” March 18 at 7:30 p.m. – “Margarita with a Straw;” March 19 at 12 p.m. – “Mimi and Dona;” and March 19 at 2 p.m. – “Gabriel.” Talk Backs follow each film. Tickets per film are $8 for JCC members and $12 for nonmembers. For details, visit http://www.richmond.reelabilities.org. Full text