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.
Bail Bonds Chesterfield VA

Varina meeting May 2 to address opioid crisis in Henrico


Varina District Supervisor Tyrone E. Nelson will hold a Community Conversations meeting Tuesday, May 2 to discuss the opioid epidemic in Henrico County.

The meeting will be held at 6:30 p.m. at the Henrico Theatre, 305 E. Nine Mile Road. Nelson will be joined by County Manager John A. Vithoulkas and members of the Henrico Heroin Task Force for a discussion of heroin and opioid abuse and ways to prevent it. > Read more.

Baker ES to remain closed until fall


Baker Elementary School students will complete the 2016-17 school year at other locations and will return to a restored building in fall 2017, school leaders have decided.

The decision was made in order to provide ample time for repairs to be completed at the fire-damaged school and to avoid additional interruptions to instructional time. > Read more.

Henrico Police arrest 2 Georgia men in connection with January murder


Henrico Police have arrested and charged two Georgia men with first-degree murder in connection with the Jan. 18 murder of 36-year-old Lamont Cornelius Baldwin in the 1200 block of Dominion Townes Terrace.

Antonio Tyrone Johnson (above, left) and Santonio Rodrigus Brown (above, right), both 24 and both of Atlanta, were charged. Johnson also was charged with use of a firearm in commission of a felony and possession of a firearm by a felon. > Read more.

Man struck and killed in western Henrico hit-and-run

A 24-year-old man died after being struck by a hit-and-run driver in western Henrico April 23.

The victim, Emmanuel Isaiah DeJesus, was found lying on the side of the roadway at about 10:25 p.m., April 23 near Patterson Avenue and Palace Way. He was transported to a local hospital, where he was pronounced dead. > Read more.

Henrico woman earns national pharmacy fellowship


Henrico County native Nilofar “Nellie” Jafari recently was named the American College of Clinical Pharmacy-American Society of Health-System Pharmacists-Virginia Commonwealth University Congressional Healthcare Policy Fellow for 2017-18.

Jafari is a 2007 graduate of J.R. Tucker High School.

Pharmacists selected for the fellowship have the opportunity to gain real-world insight into health care policy analysis and development via immersion in the congressional environment. > Read more.

Henrico Business Bulletin Board

April 2017
S M T W T F S
·
·
·
·
·
·
17
·
·
·
·
·
·

Calendar page

Classifieds

Place an Ad | More Classifieds

Calendar

The Ostomy Association of Greater Richmond, a support group for individuals who have had or are anticipating an ostomy, meets on the third Wednesday of each month at 7:30 p.m. at Henrico Doctors’ Hospital-Forest Campus, Williamsburg-A Room. The topic will be Inflammatory Bowel Disease. The speaker will be Jamie Pugh who oversees this year’s Take Steps for Crohn’s & Colitis Walk Apr. 30 in Innsbrook. Guests are always welcome. For details, contact Mike Rollston at 232-1916 or .(JavaScript must be enabled to view this email address). Full text

Your weather just got better.

Henricopedia

Henrico's Top Teachers

The Plate