School Board analyzes post-retirement program
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.
The Varina Ruritan Club hosted the winners of its 2014 Environmental Essay contest at its monthly meeting March 11 in Varina.
The contest, in its eighth year, was for the first time open to students in grades 3-5 at Varina Elementary School. (It previously was open to Sandston Elementary School students.)
The meeting included the winners, parents of the winners, Varina Elementary principal Mark Tyler and several teachers who were in charge of the contest at the school. > Read more.
For the fifth consecutive year, St. Christopher’s and Benedictine will play a varsity baseball game at Glen Allen's RF&P Park as part of a fundraising effort for the River City Buddy Ball program.
The game will take place Saturday, April 12, at 7 p.m., and the teams hope to raise $3,000 through donations, raffles and other efforts. Admission to the game is free, but fans who attend are asked to donate funds for the Glen Allen Youth Athletic Association's Buddy Ball program, which enables disabled children and teens to play baseball. > Read more.
The Henrico Division of Recreation and Parks will dedicate the Highland Springs Little League Majors Field in memory and honor of Rev. Robert “Bob” L. Spears, Jr., on April 12 with a ceremony at the field at 8 a.m.
Spears served the league as a coach and volunteer for 30 years and was praised as a pioneer for equality. His “Finish strong” motto embodied ethical perseverance on the field and in life. > Read more.
‘Muppets Most Wanted’ worthy of its franchise
Do Muppets sleep? It’s hard to say.
They don’t really eat (or breathe, as far as anyone can tell). And only occasionally do they have visible, functioning legs.
As far as anyone knows, sleeping might be off the table. And that makes it very hard to accuse the Muppets of sleepwalking through their latest feature, Muppets Most Wanted – even if that’s exactly what’s going on.
Jim Henson’s beloved creations were back in a big way after 2011’s The Muppets, with fame and fortune and even an Oscar, a first for the group (“Rainbow Connection” was nominated, yet somehow failed to collect at the ’79 ceremony). > Read more.
There’s no excuse for kids and families to not get out of the house this weekend! The Armour House and Gardens has an “Egg-celent Egg-venture” planned and Reynolds Community College will host the Reynolds Family Palooza. If you’re looking to give back to your community, Dorey Park will host Walk Like MADD and coordinators2inc will present the annual Kids Walk for Kids. And a special event for children with special needs will be on Sunday – the Caring Bunny will be at Virginia Center Commons. For all our top picks this weekend, click here! > Read more.
Is it heresy to say – in this bastion-of-tradition capital of the Old South – that it's time for Southern fried chicken to take a step back and make way for a new fried chicken king?
Count me among the new believers bowing to Bonchon Chicken's delectable double-fried bliss. Hand-brushed with signature garlic soy or hot sauce, flash-fried once and then again, the decadent drums and wings take "crisp" to a new level. If you're eating with a crowd and everyone bites in at once, be warned: you might need ear plugs to handle the din. > Read more.
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