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.
More than 300 participants took the plunge for charity Feb. 25 at The Shops at Willow Lawn, raising $40,000 for the Special Olympics of Virginia as part of the 2017 RVA Polar Plunge Fest. Participants jumped into frigid water as part of the event, having raised money through donations leading up to the event.
“At Special Olympics Virginia, our vision is to inspire the first unified generation; a generation of people who respectfully include each other in the school, in the workplace, in the community,” said Rick Jeffrey, Special Olympics Virginia President. “Plunging this past Saturday included people with intellectual disabilities and those without; people of all ages, genders, races and religions; students and teachers; doctors and lawyers; military and law enforcement; one for all; all for one." > Read more.
CancerLINC's 11th annual "It’s in the Bag" event raised more than $50,000. The event, presented by Virginia Cancer Institute, was held at The Westin Richmond in Henrico Feb. 2 and was attended by more than 200 people.
“It's in the Bag” included handbag designer Thaddeus DuBois and his family from Syracuse, Ind. DuBois brought four handcrafted handbags, which were auctioned off and raised more than $4,000. Three autographed handbags from “Sex and the City” star Sarah Jessica Parker also brought funds. > Read more.
Citizen Staff Reports 02/28/2017 Features
Above, Varina’s Andre Watkins drives to the basket during the Blue Devils’ 52-51 win against Hampton in the Group 5A third-place game at Hermitage High School Feb. 25. Below, Tyrese Jenkins drives to the basket during the game. The Blue Devils (21-6 on the season), who earlier last month defeated Hermitage, 53-34, to earn a spot in the 5A state tournament, next will face Albemarle in that tournament. It is the program’s first trip to the state tournament since 2001 and first under fourth-year coach Andrew Lacey, who has turned around a team that was 6-14 during his first season. > Read more.
For the past two months, they showed up every day at the state Capitol, dressed in matching blazers and carrying pen and paper at the ready – the next generation of public servants carefully observing their superiors.
These young adults are known as pages. They are middle school and high school students from around Virginia who assist in everyday tasks at the General Assembly to experience firsthand how the legislative process works.
The program dates as far back as 1850, when the one page who worked was paid $2 a day. > Read more.
Citizen Staff Reports 02/27/2017 Features
The Capital Region Land Conservancy (CRLC) is seeking to raise $100,000 in 30 days to cover due diligence and closing costs associated with the historic Malvern Hill Farm. These include boundary survey, Phase I ESA, title search and insurance, recording fees, taxes, and legal work as well as a Section 106 review.
CRLC is scheduled to close on the purchase of the property May 31, and is asking community members to help support the site's acquisition. All donations will help CRLC leverage $1 million in matching funds. > 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 Children’s Clothing Closet at Highland Springs United Methodist Church, 22 N. Holly Ave., will be open from 10 a.m. to noon every Tuesday and from 4 p.m. to 6 p.m. every second and fourth Thursday of the month. Clothing is available in sizes infant through teen and is free. Clothes are located on the second floor and no elevator is available. Full text